Interest-Only Fixed Rate Loans

What is an Interest-Only Fixed Rate Loan?

What is an Interest-Only Fixed Rate Loan?

Interest-only fixed rate loans are loans in which the borrower pays only interest at a fixed rate and nothing towards the principal of their mortgage loan. Interest-only fixed rate loans are a component of certain HUD multifamily loan programs, such as HUD 221(d)(4) loans for the construction and substantial rehabilitation of multifamily properties.