Interest Only

Interest only loan programs provide the same features as fixed and variable rate programs, and they additionally offer a lower payment option. With an interest only loan payment option, you pay only the interest portion of the payment but no principal.

Loan Program	Advantages	Disadvantages
Interest Only Programs	Several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full principal and interest payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

An interest only loan can be more expensive compared to a fully amortized loan. Many lenders add a fee of one-quarter point for the interest only option.

Interest only payment options allow you to qualify at the starting interest only payment. This gives you more buying power and a lower monthly payment compared to an amortized loan.

You pay interest based on your principal balance. On an interest only loan, your principal balance does not decrease, therefore, you pay more interest with this option.

Cardinal Financial Company - 444 Jacksonville Road - Warminster, PA 18974
Office Phone: (215) 293-6800 Toll Free Phone: 800-327-0969

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Licensed Mortgage Banker: CO, CT, DE, DC, FL, GA, IN (First Mtg Only), MD, MA, MI, MN, NJ, NC, OH, PA, SC, TN, VA, & WV Departments of Banking

Cardinal Financial Company, LP, 444 Jacksonville Road, Warminster, PA 18974

To check the Colorado license status of your mortgage loan originator, visit http://www.dora.state.co.us/real-estate/index.htm; Georgia Residential Mortgage Licensee #16020; Massachusetts Licensed Lender #ML3285; Minnesota – This is not an offer to enter an interest rate lock-in agreement; Licensed by the New Jersey Department of Banking and Insurance; Licensed First Mortgage Banker and Secondary Mortgage Lender by Pennsylvania Department of Banking; Licensed by the Virginia State Corporation Commission; License No.MC-1825. Equal Housing Lender.

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Interest Only