After I get an interest only loan, can I pay towards principal balance even if I wanted to? also what is consider a jumbo loan now? and can you get a jumbo loan with a credit score 720 with no doc? Thanks for your input

Loan amounts over $359,650 are considered Jumbo. On a interest only loan, you can pay any amount, any time, to the principal. That is why the interest only loan is so attractive.
Example: Say on a loan amount of $500,000 5% X 360 month amorization, payment = 2684 a month.
I.O. same loan amount and rate interest first for 3 yrs payment = 2083.
If you made the 2684 payment anyway, and applied the 600 to principal every month you would pay off in 240 months.
On the interest first loan, the balance goes down quicker.

Hope this helps

Patsy Graves

Guest_Bob,

Yes, you can get an No-Doc loan with a 720. I have a lender that can have that happen all the way up to 800K. Sound crazy but it can happen and I/O as well. The points on the loan are horrible but you pay for what you ask. About to finish closing my first one like this hopefully next week. Call me if you need help or email me jandrews@sacelkloans.com.

There are many types of loan combos. The key is a diverse broker with many avenues. I have many companies that you do a no-doc on a 680, but why pay the rate of its not necessary...Agree? As to the principal I/O question. First, how long are you planning on living there, couple of years or are you retiring there? No need to pay more interest than necessary..Agree? Find the product that relates to your situation. Bank United has a program similar to World Savings only much more forgiving. Only a 680 for Stated and your rate is 1.2 minimum payment, 4.? interest payment, or fully index pymt of rate you qualify for. You can save the most money on this program, AND, put more money toward your balance. Drop me a note of you have any questions...happy to help