GoldKey Interest-Only Mortgage
Rates that Reward your KeyBank Relationship.
Take advantage of lower monthly payments during the initial interest-only period to free up cash flow or invest your savings to build net worth.
Overview
| Loan Amount | $766,551 to $3.5 million |
|---|---|
| Loan to Value (LTV) |
Up to 80% on $1.5 million |
| Interest Rate | Variable-rate options only: 10/6 mo., 7/6 mo., 5/6 mo.1 |
| Private Mortgage Insurance (PMI) |
Not required |
Features and Benefits
- Available for clients with $100,000 or more in deposits or investments with Key2
- Special Platinum Pricing available to clients with $2,000,000 or more in deposits or investments with Key2
- Enjoy a lower, interest-only payment for the first 10 years of your loan.
- During your interest-only period, your whole monthly payment may qualify as tax deductible. (Check with your tax advisor.)
- Eligible property types include owner-occupied primary residences and second homes.
- Available for 1-unit single-family homes, condos or planned unit developments.
How This Mortgage Works
Structured properly, an interest-only mortgage may be used as an interest deduction, to enhance investment returns, reduce tax liabilities3 and improve liquidity management.
Interest-only mortgages can make sense for buyers who plan to sell within a shorter time period, or are confident they can afford the future payment increase.
Contact Us
We'll walk you through your options. With your rates, terms and benefits in hand, you'll have everything you need to take
the next step.
NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. All home lending products, including mortgage, home equity loans and home equity lines of credit, are subject to credit and collateral approval. Not all home lending products are available in all states. Hazard insurance and, if applicable, flood insurance are required on collateral property. Actual rates, fees, and terms are based on those offered as of the date of application and are subject to change without notice. Mortgage and Home Equity Lending products offered by KeyBank are not FDIC insured or guaranteed. Equal Housing Lender.
Adjustable Rate Mortgage (ARM) interest rates and payments are subject to increase after the initial fixed-rate period (5 years for 5/6 mo. ARM, 7 years for a 7/6 mo. ARM, 10 years for a 10/6 mo. ARM) and assume a 30-year repayment period.
Typical loan payment examples for a 10/6 ARM are as follows: Monthly interest-only payments 1-120:
$5,666.67 with an interest rate of 8.500% / 8.473% APR. Monthly principal and interest payments 121-359:
$6,864.35 with an interest rate of 8.375% / 8.473% APR. Final monthly principal and interest payment of $6,816.77 with a rate of 8.375% / 8.473% APR.
Typical loan payment examples for a 7/6 ARM are as follows: Monthly interest-only payments 1-84:
$5,583.33 with an interest rate of 8.375% / 8.387% APR. Monthly principal and interest payments 85-359:
$6,526.25 with an interest rate of 8.375% / 8.387% APR. Final monthly principal and interest payment of $6,481.02 with a rate of 8.375% / 8.387% APR.
Typical loan payment examples for a 5/6 ARM are as follows: Monthly interest-only payments 1-60:
$5,583.33 with an interest rate of 8.375% / 8.382% APR. Monthly principal and interest payments 61-359:
$6,362.45 with an interest rate of 8.375% / 8.382% APR. Final monthly principal and interest payment of $6,318.35 with a rate of 8.375% / 8.382% APR.
Sample based on loan amount of $800,000 with a down payment of 20% or $200,000, and a 30 year term. Example rates and APR effective as of 11/14/2023 and are subject to change without notice. Above scenario assumes a first lien position and an excellent credit profile including a FICO score of 740 or higher, and a debt-to-income ratio of 36% or lower.
Deposit or Investment Requirement: GoldKey product is available to KeyBank borrowers with $100,000 or more in consumer deposits and/or investments with KeyBank. Additional Platinum Pricing discount is available to KeyBank borrowers with $2,000,000 or more in consumer deposits and/or investments with KeyBank. Consumer deposit accounts are personal checking accounts designated by KeyBank or the KeyBank Hassle-Free Account®, as well as personal consumer savings accounts including those consumer deposit accounts designated as savings accounts by KeyBank, health savings accounts, certificates of deposit, or individual retirement accounts. Investment accounts are investment accounts that are offered through Key Investment Services LLC (KIS)*. Minimum deposits and/or investment account balances must be in excess of any closing costs or down payment requirements associated with your loan.
Investment products are offered through Key Investment Services LLC (KIS), member FINRA/SIPC and SEC-registered investment advisor. Insurance products are offered through KeyCorp Insurance Agency USA, Inc. (KIA). KIS and KIA are affiliated with KeyBank National Association (KeyBank). Investment and insurance products made available through KIS and KIA are:
KIS, KIA and KeyBank are separate entities, and when you buy or sell securities and insurance products you are doing business with KIS and/or KIA, and not KeyBank.
Please consult your tax advisor regarding impacts to tax liability.
NMLS# 399797
