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Interest-Only Loans
Flexible Payment Options for Your Mortgage
Updated: February 2026
Reviewed: February 2026 by Sebastian Naranjo, NMLS #2313958
At SRK CAPITAL, we know that traditional mortgage options don't fit everyone's financial goals. That's why we offer Interest-Only Loans, providing you with the freedom and flexibility to manage your home financing effectively.
What Are Interest-Only Loans?
This type of loan lets you pay only the interest part of your mortgage for a specified period. This is typically between 5 to 10 years. During this time, your monthly payments are lower since you're not paying down the principal balance. After the interest-only period ends, the loan transitions to a traditional repayment schedule, where both principal and interest are paid.
Benefits of Interest-Only Loans
These loans are best suited for:
Lower Starting Payments
By paying only interest initially, you can enjoy reduced monthly payments. This frees up cash flow for other investments or expenses.
Financial Flexibility
Ideal for individuals with fluctuating income or those expecting significant income growth in the future.
Investment Opportunities
Extra cash flow can be directed towards other investments, helping to yield higher returns.
Is an Interest-Only Loan Right for You?
Professionals with Variable Income
Like commission-based employees or self-employed individuals.
Investors
Looking to maximize cash flow from rental properties.
Home buyers Planning to Sell or Refinance
Before the interest-only period ends.
Individuals Expecting Income Growth
Anticipating higher earnings soon.
Considerations Before Choosing This Type of Loan
While these loans offer several advantages, it's essential to consider:
Payment Increase
After the interest period, monthly payments will increase as you start repaying the principal.
Equity Building
You're not building equity during the interest-only phase unless property values appreciate.
Market Risks
If property values decline, you can owe more than your home's worth.
Qualification Requirements
Lenders can have stricter criteria for interest-only loans.
Steps to Getting an Interest-Only Loan with SRK CAPITAL
1
Loan Consultation
Contact us to discuss your financial goals and explore loan options.
2
Application Submission
Finish our straightforward application process with the assistance of our experienced team.
3
Financial Assessment
We'll evaluate your income, assets, and credit history to find out your eligibility.
4
Loan Approval
Upon approval, our team will get everything ready so you can close your deal.
5
Closing
Finish the loan process and start enjoying the benefits of your mortgage.
Commonly Asked Questions
Get Started Today
If you're considering an interest-only loan or another loan choice, SRK CAPITAL is here to guide you through the process. Our team of experts will work closely with you to come up with a lending solution for you. One that aligns with your financial goals and lifestyle.
Contact SRK CAPITAL today to schedule a free consultation call. We can discuss how an interest-only loan can offer the financial freedom and flexibility you need.
Your Partner in Flexible Home Financing
Financial Disclosure
The information provided on this page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates and terms are subject to change and may vary based on your individual financial situation. Please consult with a licensed mortgage professional at SRK CAPITAL for personalized guidance.