Innovative Mortgages

Innovative Solutions to Meet Your Financial Goals

Chevy Chase Bank’s innovative home financing products can help you manage your cash flow.

Interest-Only Fixed Rate Loan

An Interest-Only Fixed-Rate Loan combines the predictability of a Fixed-Rate Mortgage Loan with the flexibility of an interest-only payment.

An Interest-Only Fixed-Rate Loan may be right for you if:

  • You’ll be earning a higher income in the near future
  • You know you are going to move or sell within a few years
  • You’re disciplined and have a good use for your monthly savings (i.e., paying down high-interest debts or meeting a short-term expense such as college tuition)

You can have the best of both worlds: low interest-only mortgage payments with the security of a fixed rate loan. This could save you hundreds of dollars on your mortgage each month or provide you with the increased buying power to purchase a larger home.

With the Interest-Only Fixed-Rate Loan, the interest rate is fixed for the term of the loan. However, for the first 10 years, you pay only the interest on your mortgage each month, creating a window for steep savings. You always have the option of paying down the principal at any time without penalty. After the 10-year period, you pay both interest and principal.1

For more information or to apply by phone, call us at 301-987-BANK or 1-800-987-BANK (out of area). Our Mortgage Advisors are available seven days a week. You can also complete a Home Loan Express online application now. Or, if you would prefer that we contact you, please complete our online request form.

1 For example, a 30-year interest-only fixed-rate mortgage at an interest rate of 6.625% (6.78% APR) for $300,000 would require initial monthly interest payments of $1,656.25 each. During this time, your principal balance will not decrease unless you make principal payments in addition to the required monthly interest payments. Beginning with the 11th year of the mortgage, your required monthly payments will adjust to cover the remaining interest and principal balance to fully repay the loan over the remaining term. In the example above, a recalculated principal and interest payment based on the principal balance of $300,000 would be $2,258.85. Monthly escrows for taxes and applicable insurances are required in addition to the monthly interest-only and principal and interest payments. Other Interest-Only product options available. Restrictions apply. No prepayment penalty applies.

Also of Interest:

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