Need extra cash in your pocket. Need more buying power to purchase a big home? The Advantage Mortgage Interest Only Payment Reduction Program (PRP) may be just the program for you. The PRP reduces your monthly mortgage payment, has no negative amortization, and may help you control your cash flow.
Interest Only Loans have been truly rising in popularity over the last two years. Designed for buyers or homeowners who intend to live in their homes for shorter periods of time (one to ten years) or need to increase monthly cash flow, these loans allow borrowers to make lower payments than a traditional mortgage because none of the monthly payment goes toward principal. Interest rates generally are up to two or three percentage points lower than fixed-rate mortgages and the full payment may be tax-deductible. The net effect is that you may be able to cut your payment in half!
The PRP Interest-Only Loan Offers You:
- Month-To-Month Flexibility- Each month, you can pay interest only or interest plus any additional amount you would like applied to principal. This means that your monthly payment could be up to 50% less than fixed-rate mortgages!
- Freedom to spend your money how you want. Use your money for home furnishings, remolding, or take a vacation!
See how much you could save with the Payment Relief Program (PRP)!
PRP vs. 30 year fixed
| Loan Amount |
30 Year Fixed at 5.75% |
PRP |
Annual Savings |
Savings Over 5 Years |
| $200,000 |
$1167.15 |
$583.34 |
$7000 |
$35,000 |
| $300,000 |
$1750.72 |
$875.00 |
$10,500 |
$52,500 |
| $400,000 |
$2334.29 |
$1166.67 |
$14,000 |
$70,000 |
|
