Interest-Only Fixed Rate Loans

What is an Interest-Only Fixed Rate Loan?

What is an Interest-Only Fixed Rate Loan?

An interest-only fixed-rate loan is a fixed-rate mortgage which the borrowers pays only interest and nothing towards the principal. When it comes to HUD 221(d)(4) loans, interest-only fixed-rate loans are offered during an up to 3-year period during the construction or substantial rehabilitation of a property.