Using our above estimator, on a $250,000 loan with a 2.75 percent interest-only rate, you can expect to pay $572.92 monthly, compared to $1,088.02 for a conventional 30-year, fixed-rate loan at 3.25 percent interest. The attraction of an interest-only loan is that it significantly lowers your initial monthly mortgage payment. In these and other instance, an interest-only mortgage may be the right option. Other home buyers may want to free up cash to invest in other opportunities while still taking advantage of a hot real estate market. For example, some home buyers may not have the down payment or other financial credentials they need to get the 30-year mortgage for the home they want to buy. However, the loan is inflexible, and it may not offer every buyer the options they need to meet their financial goals. Additional loan options are listed in the drop down filter area.Ī 30-year, fixed-rate mortgage is the traditional loan choice for most homebuyers. Clicking on the purchase button displays current refi rates. If no results are shown or you would like to compare the rates against other introductory periods you can use the products menu to select rates on loans that reset after 1, 3, 5, 7 or 10 years. Filters enable you to change the loan amount, duration, or loan type. How much money could you save? Compare lenders serving Los Angeles to find the best loan to fit your needs & lock in low rates today!īy default 30-yr loans are displayed in the table below. Money Saving Tip: Lock-in Los Angeles's Low 30-Year Mortgage Rates Today All pages on this site protect user privacy using secure socket technology. We do not store copies of the generated PDFs and your email record and calculation are immediately discarded after sending the report. No personal details are required to see the online results & emails are only used to send the requested reports. Given the current low-rate environment, you may be able to save thousands by locking in today's low rates. We also offer an I-O ARM calculator and a traditional ARM loan calculator.Ĭurrent Los Angeles mortgage rates are displayed below. However if rates reset higher, so too will payments - causing home prices to decline & many marginal buyers to lose their equity & perhaps their homes. If home prices continue to climb, one can refinance at a lower rate. When the housing market is hot many people chase it, buying near the peak with interest-only loans. This tool helps buyers calculate current interest-only payments, but most interest-only loans are adjustable rate mortgages (ARMs). Of course with the conventional mortgage at the end of the loan you would own all the equity in the home, whereas with an interest-only loan you would still owe a lot of money on the house and only own whatever appreciation occured throughout the loan term. Under this plan, the total interest only cost would be $206,250.00, while the total standard loan cost would be $391,685.69. With an interest only loan, your monthly payment would be $572.92, while a standard loan would be $1,088.02. If you wanted to borrow $250000.00 for the purchase of your home, you might be offered a standard loan with a 3.250% interest rate or an interest only loan with a 2.750% interest rate, with both being 30 year loans. It is a wise financial decision to compare the two types of loans before deciding which one is best for you. With an interest only loan, you will pay only on the interest when you make your monthly payments and you will eventually be called upon to pay the principal. When applying for a mortgage loan for your home, you can choose between a standard loan and an interest only loan. Your Results in Plain English ( Switch to Financial Analysis)
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