Interest-Only Mortgages
Keep your payments light in the beginning and pay more when it works for U. An interest-only mortgage helps U ease into homeownership without stretching your budget from day one.
Interest-only Mortgage Details
An interest-only mortgage lets you pay just the interest on your loan for the first few years, instead of both principal and interest. This gives you smaller monthly payments at the start and the flexibility to decide when and how you want to pay down your loan balance.
In other words, interest-only mortgage benefits stack up quickly—lower payments at the start, flexibility on timing, and the freedom to pay more when it works for you.
Low Initial Payments
Buy yourself time to get all your ducks in a row with lower payments for the first few years.
Choose Your Term
Decide how long you want the interest-only bit to be and how long you want to have the loan in total.
Pay Big When You Can
If you’re the type who gets bonuses or windfalls, you can drop money on your mortgage as suits you.
Interest-only Mortgage Rates
|
LOAN TYPE |
TERMS |
APR* |
|---|---|---|
|
LOAN TYPE Interest-Only Mortgage |
TERMS Call for estimate |
APR* Call for estimate |
Interest-only Mortgage Application Requirements
The documents you need for an interest-only mortgage are pretty much the same as what you need for any other home loans! Just show us the most recent or current versions of this bunch of paperwork:
- Photo ID and proof of address because we want to know all about you
- Bank statements and proof of any other assets to show the balance is in your favor
- Tax returns (from the last two years should do it)
- Pay stubs, W-2s, 1099s and any other proof of incoming fortune
- Gift letters if some kind person is chipping in for your down payment
- Evidence of your renting history or another time you owned a home
- Credit history – we can check your credit score and you ought to take a peek too
Our Simple Application Process
Applying for a mortgage doesn’t have to feel overwhelming. At UMe, we’ve designed the process to be as clear (and friendly) as possible, so you can spend less time on paperwork and more time planning your housewarming.
Get a head start by finding all the documents and information in the list above.
Reach out to one of our home loan gurus to figure out if interest-only is the right move for you.
Choose if you want to apply online, over the phone, or in-person at your local branch.
We’ll give your application all the time and care it deserves then get back to you with a yay or nay, or maybe ask you for more info.
Now, there’s a fantastic chance you’ll pre-qualify for your loan, which means it’s time to start house hunting with your financing ready to go!
After you put in an offer (and it’s accepted!), we can guide you through the closing process and set you up to make your first payments.
Handy Ways to Make Payments
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Payroll Deduction
Want your loan payment handled automatically? If you have a loan with us, payroll deduction can take care of it straight from your paycheck — one less thing on your monthly to-do list.
- To check eligibility, contact your employer’s benefits department.
- Already enrolled in payroll deduction? Call us at (818) 238-2900 to set up automatic loan payments.
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Automatic Transfers
If you’d rather manage payments through your UMe account, automatic transfers make it just as easy. Set a schedule, and your payment moves on time every month — no reminders needed.
- To get started, complete our Share to Loan Transfer Form or call us at (818) 238-2900.
Membership Benefits
Joining UMe means more than banking — it’s becoming part of a community that gives back. From membership discounts to digital tools that make life easier, membership comes with perks designed to help you save and thrive.
Automatic transfers
Set it and forget it. With automatic transfers between UMe accounts, your payments happen on time every time, without lifting a finger.
Mobile banking
Your money goes where you go. Check balances, deposit checks, pay bills, and more, all from our easy-to-use mobile app.
Financial calculators
Dream it, plan it, do it. Our calculators help you crunch the numbers so you can make confident financial moves.
BillPay
Skip the stamps (and the stress). Pay almost anyone online, track your expenses, and keep it all paperless.
Interest-only Mortgage FAQ
It’s a home loan where, for the first few years, your monthly payments cover only the interest. That means lower payments up front compared to a traditional mortgage.
When the interest-only phase wraps up, your loan shifts to regular payments that cover both the principal and interest. Your monthly payment will go up at that point.
Absolutely. You can put extra money toward your principal whenever you’d like, which helps lower your overall loan balance sooner.
This type of loan can make sense if you want smaller payments in the beginning, expect your income to increase, or just like having flexibility in how you pay down your loan.