Interest-Only Mortgage – an interest-only Mortgage is a loan with monthly payments only on the interest of the amount borrowed for an initial term at a fixed interest rate. The interest-only period typically lasts for 7 – 10 years and the total loan term is 30 years. After the initial phase is over, an interest-only loan begins amortizing and you start paying the principal and interest for the remainder of the loan term at an adjustable interest rate.
Jumbo Loan – is a loan that exceeds the limits set by Federal Housing Finance Agency (FHFA). Unlike Conventional loans, jumbo loan is not eligible to be purchased or guaranteed by Fannie Mae and Freddie Mac. jumbo mortgages come with unique underwriting requirements and tax implications.