Florida Guide to Interest Only Mortgage Loans: What They Are and How to Get One

If you're buying a home or refinancing in Florida and looking for a flexible way to manage your monthly payments, you may want to consider an interest only mortgage loan. These loans offer lower initial payments, which can be helpful if you need financial breathing room during the first few years of homeownership.

At Midwest Mortgage, we help Florida buyers explore all their mortgage options, including how to apply for interest only mortgage programs that fit their financial goals. In this guide, we’ll explain exactly what is interest only mortgage loan, how it works, the pros and cons, and how to find the best interest only mortgage lender in Florida.

What Is Interest Only Mortgage Loan?

An interest only mortgage loan allows you to pay only the interest on your loan for a set number of years, usually between 5 and 10. During this period, your monthly payment does not reduce the loan balance. After the interest only period ends, you begin paying both interest and principal, which increases your monthly cost.

So, if you’re wondering interest only mortgage what is it, think of it as a loan that delays paying down your debt so you can manage lower monthly payments early on. It is especially helpful for buyers expecting higher income in the future or those planning to sell or refinance before the interest only period ends.

What Are Interest Only Mortgage Options in Florida?

Florida homeowners can choose from several types of interest only mortgage structures:

• 5/1 ARM Interest Only: Pay interest only for 5 years, then the rate adjusts annually.
  
  
• 7/1 or 10/1 ARM: More years of stable payments before rate changes begin.
  
  
• Fixed Interest Only: Less common, but offers fixed interest payments before the loan converts.
  

These options give you flexibility depending on your timeline and income plans. Midwest Mortgage can help you determine what are interest only mortgage structures that make the most sense for your goals.

Benefits of Paying Interest Only Mortgage

There are several reasons why Florida buyers consider paying interest only mortgage options:

• Lower initial payments: Free up cash flow for other expenses or investments.
  
  
• Financial flexibility: Ideal for buyers with fluctuating income or who expect earnings to grow.
  
  
• Short-term ownership: Perfect for those who plan to sell before the higher payments begin.
  
  
• Investment strategy: Investors may use interest only loans to maximize cash flow on rental properties.
  

Midwest Mortgage helps you work out interest only mortgage terms that match your financial timeline, so you don’t overpay when it's not necessary.

Who Should Apply for Interest Only Mortgage in Florida?

You might want to apply for interest only mortgage if you:

• Are buying a home you plan to keep short-term
  
  
• Expect your income to rise in the next few years
  
  
• Need to reduce upfront homeownership costs
  
  
• Want to invest your savings elsewhere
  
  
• Are you purchasing a second home or investment property
  

Our mortgage advisors at Midwest Mortgage help Floridians work out interest only mortgage plans that reduce risk while maximizing benefits.

Rates for Interest Only Mortgage in Florida

The rates for interest only mortgage loans can vary depending on market conditions, your credit score, down payment, and the loan structure. Generally, these loans may have slightly higher interest rates than traditional fixed loans due to the added risk to lenders.

At Midwest Mortgage, we help clients across Florida compare offers to find competitive rates for interest only mortgage products, including jumbo and non-conforming options.

Jumbo Interest Only Mortgage Rates

In higher-priced Florida markets like Miami, Naples, or Fort Lauderdale, buyers often need larger loans. A jumbo interest only mortgage allows qualified borrowers to finance homes above the conforming loan limits while enjoying interest only payments for the initial years.

Jumbo interest only mortgage rates are typically higher than conventional rates and may come with stricter credit and income requirements. However, they offer excellent flexibility for high-income buyers or investors.

Midwest Mortgage specializes in helping clients in Florida qualify for jumbo interest only mortgage rates that fit their high-value property goals.

How to Apply for Interest Only Mortgage

To apply for interest only mortgage in Florida, follow these steps:

1. Check your credit – A higher credit score improves your chances and unlocks better rates.
   
   
2. Gather income documentation – Lenders want proof of your ability to afford future principal payments.
   
   
3. Evaluate loan options – Choose between adjustable or fixed structures.
   
   
4. Get pre-approved – Work with an interest only mortgage lender to understand how much you can borrow.
   
   
5. Compare lenders – Look at interest rates, fees, and loan terms before choosing a provider.
   

At Midwest Mortgage, we simplify the process by connecting you with top interest only mortgage lenders in Florida and walking you through every step.

Choosing the Right Interest Only Mortgage Lender

Not every interest only mortgage lender offers the same terms, rates, or service. When choosing among interest only mortgage lenders, ask these key questions:

• What are your current rates for interest only mortgage?
  
  
• What is the maximum interest only period?
  
  
• Are your loans fixed or adjustable after the initial term?
  
  
• Do you offer jumbo interest only mortgage products?
  
  
• Can I refinance easily once the interest only period ends?
  

Midwest Mortgage works with leading interest only mortgage lenders across Florida to give you access to competitive rates, fast closings, and full transparency.

Risks to Consider with Interest Only Mortgages

While interest only mortgage loans can offer great short-term savings, they come with certain risks:

• Higher payments later: Once the interest only period ends, your payments can jump significantly.
  
  
• No equity build-up: You don’t pay down the principal initially, so you build no home equity.
  
  
• Market risk: If home values fall, you could owe more than your property is worth.
  
  
• Refinancing limitations: You may need to refinance into a traditional mortgage later, which could involve higher rates or stricter requirements.
  

That’s why at Midwest Mortgage, we help Florida homeowners fully understand the pros and cons of what is interest only mortgage loan, so they can make a confident decision.

Final Thoughts from Midwest Mortgage

Understanding what is interest only mortgage loan is key if you're buying or refinancing in Florida and looking for maximum flexibility with lower upfront payments. Whether you're seeking jumbo interest only mortgage rates or exploring your first home purchase, this option can be a strategic choice if used wisely.

At Midwest Mortgage, we help you compare Florida’s top interest only mortgage lenders, evaluate personalized options, and understand how to apply for interest only mortgage that suits your needs. From Miami to Tampa and everywhere in between, we support Floridians with honest advice and competitive loan products.

Ready to get started?
Connect with Midwest Mortgage today to explore your best options for interest only mortgage loans in Florida.

‍