Interest-Only Period
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An interest-only period is a stretch at the start of a loan when the borrower pays only interest, with no principal, keeping payments lower.
What Interest-Only Period means
During this period the balance does not shrink. When it ends, payments rise to cover principal over the remaining term. These loans suit borrowers expecting higher future income or short ownership.
Florida example
A self-employed buyer used a loan with a 10-year interest-only period on a Miami condo, keeping early payments low before principal payments began.
What it is
The interest-only period is the early stretch when you pay only interest, not principal. Your payment is lower during that time.
The balance does not drop until it ends.
Who it fits
It suits buyers with rising income or investors managing cash flow. After the period, payments rise.
We help you decide if the trade-off fits. Reach out and we will compare it to a standard loan.