The effects of the pandemic have changed how people do business, and Newfi has adapted to help people get through this difficult time. Newfi’s hybrid 40-year Interest-Only loan is especially beneficial to borrowers as we work to emerge from the pandemic.
Many people have been impacted financially due to COVID. Interest-Only payments reduce the monthly payments you are committed to make on your mortgage. That puts more dollars in your pockets for the first ten years, while still giving you the peace-of-mind of a fixed rate over the 40-year term.
The pandemic upended many people’s employment. Maybe you have taken on a new job or have hyphenated employment. The 40-year Interest-Only essentially allows you to “rent” your home at a lesser amount because you’re not initially making principal payments. The price tag on your monthly mortgage payment is smaller. That break on your payment will help if your new job doesn’t pay as much, or your hours were cut severely, or fluctuating. These versatile payment options can offer ongoing monthly savings for any type of employee.
In particular, we know that small business owners were heavily impacted during COVID, even more so than W2 employees who had only started working from home because of the pandemic. Self-employed borrowers of all sizes often had to adapt to the changing business environment, and in some cases had to change business models completely to accommodate the COVID shelter-in-place quarantine.
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This loan does have some considerations for mom-and-pop self-employed borrowers that allow for easier qualification. The higher debt thresholds help make qualifying for the 40-year Interest-Only more accessible for small business owners impacted by COVID.
Also, because we know that income levels can undulate for people running their own business, you can pay just the interest on the mortgage for the first ten years. But can also pay more on the principal on the months your business has increased cash flow. You’re just not on the hook for larger monthly payments, for the lean times.
No matter what changes the world throws at you, this loan gives you the peace of mind that your mortgage payments will be one thing you know won’t change.
Use Newfi’s Interest-Only Calculator to estimate your monthly or annual payments for an interest-only mortgage. Get started with Newfi online, or call us at (888) 316-3934.