9 Best Interest-Only Mortgage Lenders of 2023
An interest-only mortgage is a niche product that can be difficult to find these days. See NerdWallet's picks for some of the best interest-only mortgage lenders in 2023.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
An interest-only mortgage can be hard to find these days. It is a niche product, best suited for borrowers with strong cash flow, good credit and often for those looking for a short-term loan — typically from five to seven years.
Many interest-only mortgages are also jumbo loans, for higher-priced properties that don't meet conventional loan standards.
NerdWallet has gathered some of the best mortgage lenders for people seeking interest-only mortgages to help you find the one that's right for your needs.
An interest-only mortgage can be hard to find these days. It is a niche product, best suited for borrowers with strong cash flow, good credit and often for those looking for a short-term loan — typically from five to seven years.
Many interest-only mortgages are also jumbo loans, for higher-priced properties that don't meet conventional loan standards.
NerdWallet has gathered some of the best mortgage lenders for people seeking interest-only mortgages to help you find the one that's right for your needs.
Best Interest-Only Mortgage Lenders
Lender | NerdWallet rating | Min. credit score | Min. down payment | National / regional | Learn more |
---|---|---|---|---|---|
![]() Bank of America: NMLS#399802 | Best for mortgage rates | 660 | 5% | National | Read review |
![]() Chase: NMLS#399798 | Best for traditional lending experience | 620 | 3% | N/A | Read review |
![]() Flagstar: NMLS#417490 | Best for rate transparency | 620 | 3% | N/A | Read review |
![]() Guaranteed Rate: NMLS#2611 Learn more at Guaranteed Rate | Best for overall lending experience | 620 | 3% | N/A | Learn more at Guaranteed Rate |
![]() New American Funding: NMLS#6606 Learn more at New American Funding | Best for rate transparency | 620 | 3% | N/A | Learn more at New American Funding |
![]() PNC: NMLS#446303 | Best for jumbo loans | 620 | 3% | N/A | Read review |
![]() Truist: NMLS#399803 | Best for traditional lending experience | 620 | 3% | N/A | Read review |
![]() Wells Fargo: NMLS#399801 | Best for jumbo loans | 620 | 3% | N/A | Read review |
![]() Wintrust Mortgage: NMLS#449042 | Best for variety of loan types | 620 | 3% | N/A | Read review |
Bank of America: NMLS#399802

Min. credit score
660Min. down payment
5%National / regional
NationalChase: NMLS#399798

Min. credit score
620Min. down payment
3%Flagstar: NMLS#417490

Min. credit score
620Min. down payment
3%
at Guaranteed Rate
Guaranteed Rate: NMLS#2611

Min. credit score
620Min. down payment
3%at Guaranteed Rate

at New American Funding
New American Funding: NMLS#6606

Min. credit score
620Min. down payment
3%at New American Funding
Truist: NMLS#399803

Min. credit score
620Min. down payment
3%Wells Fargo: NMLS#399801

Min. credit score
620Min. down payment
3%Wintrust Mortgage: NMLS#449042

Min. credit score
620Min. down payment
3%What is an interest-only mortgage?
An interest-only mortgage requires payments just of the interest — the "cost of money" — that a lender charges. You’re not paying back any of the borrowed money (the principal). That means you're not building equity in the house except from your down payment or any gain in value that may occur due to local market circumstances.
These home loans are usually structured as adjustable-rate mortgages and frequently have terms of up to 10 years. After that, you’ll have to make amortized payments that are split between interest charges and principal reduction, or pay off the loan, or refinance.
» MORE: How interest-only mortgages work
Who can qualify for an interest-only mortgage?
Compared with a typical principal-and-interest mortgage, interest-only loans often require higher down payments and lower debt-to-income ratios, as well as good-to-excellent credit scores — for example, a FICO score of 700 or higher.
When would you use an interest-only mortgage?
An interest-only mortgage might be a good fit if you don't plan to live in the property for long and want to preserve the cash you'd spend on monthly payments for other investments. You must be in a strong financial position and not need to build equity.
More from NerdWallet
Last updated on February 8, 2023
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion on this roundup, lenders must score a 4.5 or above according to our overall methodology and offer interest-only loans.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
To recap our selections...
NerdWallet's Best Interest-Only Mortgage Lenders of 2023
- Bank of America: Best for mortgage rates
- Chase: Best for traditional lending experience
- Flagstar: Best for rate transparency
- Guaranteed Rate: Best for overall lending experience
- New American Funding: Best for rate transparency
- PNC: Best for jumbo loans
- Truist: Best for traditional lending experience
- Wells Fargo: Best for jumbo loans
- Wintrust Mortgage: Best for variety of loan types