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.

Horizon Financial Corporation (headquarters) - 271 Route 46 West, Unit H103 - Fairfield, NJ 07004
Office: (973) 244-5626 Fax: (973) 244-9364 Toll Free Nationwide: (888) 448-2594

Horizon Financial Corporation is a licensed mortgage banker, CT and NJ Department of Banking and registered mortgage broker AZ, FL, NY and TN Department of Banking; dba Horizon Mortgage (New York), Horizon Mortgage Capital (Florida) and Horizon Funding (Arizona and Tennessee). All loans in AZ, FL, NY and TN are arranged through third party providers.

Horizon Financial Corporation is not affiliated with TFS Securities, Inc. when conducting mortgage related activities.

AAMB - Arizona Association of Mortgage Brokers

FAMB - Florida Association of Mortgage Brokers

NAMB - National Association of Mortgage Brokers