Interest-Only Financing Solutions

A home financing payment option that offers you the flexibility to control your cash flow by reducing your initial monthly mortgage payments.¹

Is an interest-only financing solution right for me?

By paying only the interest on your mortgage, you can reduce your monthly mortgage payment and have more funds available for other needs. Redirecting money that would have gone toward paying principal on your mortgage may complement your overall financial strategy and potentially help you grow your wealth.

An interest-only financing solution can allow you to:

• Maximize potential tax deductions.²
• Manage unforeseen expenses.
• Repay higher cost, non-deductible consumer debt.
• Reduce future monthly payments when principal prepayments are made during the interest-only period. (The reduced payment would be based on the new lower principal balance.)

What are the features of mortgages with interest-only financing solutions?

All interest-only financing solutions feature:

• If principal payments are made, subsequent interest-only payments will be recalculated monthly based on new lower principal balance.
• Large loan amounts available.³
• Available for one- to four-unit owner-occupied properties and New York co-ops.
• Available with a wide selection of mortgages, including our adjustable-rate mortgages, Term adjustable-rate mortgages and home equity credit lines.

¹“Interest-only” mortgages allow you to pay only the interest on the money you borrow for a certain number of years. If you only pay the amount of interest that’s due, once the interest-only period ends, you will still owe the original amount you borrowed and your monthly payment will increase – even if interest rates stay the same – because you must pay back the principal as well as interest. You should ask what the payments on your loan will be after the end of the interest only period. If you are considering an adjustable-rate mortgage, ask about what your payments can be if interest rates increase.

²Merrill Lynch does not provide specific recommendations on tax issues. Consult your tax advisor regarding the deductibility of interest expense. Interest expense may not be deductible for all taxpayers.

³Loan amounts over $3 million available on a negotiated basis.