Dr. Toby PotterCEO and Founder, The Unshakable Investor · Real Estate Investor Success Coach

No Payments for 12 Months? Loan Secrets Revealed!

Name: No Payments for 12 Months? Loan Secrets Revealed!
Uploaded: 2025-06-03T15:24:35+00:00
Duration: 19 s
Channel: Dr. Toby Potter
Description: In this short dialogue, Speaker A clarifies a loan product that allows borrowers to defer all monthly payments and interest for a full 12‑month period…

3 Jun 2025 · 0 min

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In this short dialogue, Speaker A clarifies a loan product that allows borrowers to defer all monthly payments and interest for a full 12‑month period. Unlike typical interest‑reserve or prepaid‑interest arrangements, the principal balance remains unchanged during the deferral; any accrued interest is simply added to the final payoff amount and does not compound month‑to‑month. An example is given where a borrower takes a $275,000 loan and, after the deferral period, still owes $275,000 plus the deferred interest, not a higher principal such as $325,000. The conversation emphasizes that the loan amount does not increase during the deferral, only the interest that will be settled at the end.

And then I don't have any payments for 12 months. Correct. Right. You know, when some lenders say they don't have any monthly payments, that's because there's some sort of interest reserve or that they're bringing, you know, a certain amount of prepaid interest to closing. That's not the case with us. We're truly deferring a whole year of interest. So if you pay us back in 7 months, we'll just add 7 months of interest to the final payoff.
Yeah. So, so I borrowed $275,000 and I I don't now have a $325,000 loan.
I still have the $275,000 because you didn't roll in all those payments. Correct. And it's not like the— some people hear what we do and they think, oh well, does that mean my loan amount is going to continually be increasing? Is that my, my interest is compounding on itself? On top of the balance, the loan amount is the loan amount. That doesn't change. The only thing that gets added on top is the interest at the end of the loan.