An interest only refinance is a mortgage loan that offers the option of paying just the interest or the interest and as much principal as you choose in any given month.  These loans are available with a 30 year fixed rate or as an adjustable rate mortgage.

With an interest only refinance you gain greater refinance or purchasing power and pay only the interest on your mortgage in monthly payments for a fixed term.  It can lower your monthly payments and increase your cash flow.  You have the options of paying principal whenever you choose and as much as you choose. You may also receive a tax deduction, to determine this you should speak with your tax adviser.

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