Anyone ever use theses types of loans? A guy called me about refinancing and told me that he could cut my payment in half if I went with this type of loan.
Interest only mortgages
- Thread starter Master Capper
- Start date
1/Do you need the money desperately?
2/Are you turning the property very soon?
3Are you contemplating suicide within a year or so?
4/Realizing a cash windfall?
If yes to any of the above, go for it. Any other reason - no way.
Loan originators are getting loose with ethics, good luck
2/Are you turning the property very soon?
3Are you contemplating suicide within a year or so?
4/Realizing a cash windfall?
If yes to any of the above, go for it. Any other reason - no way.
Loan originators are getting loose with ethics, good luck
mc,
i'm doing my first interest only mortgage on a rental that i just bought.
imo, & i am learning as i go......these type of loans should be used for a short term.
the one i have is a 5/1 arm where i pay interest only for 5 years (but can also pay principle & interest if i decide) but then after the 5 years i have to pay principal & interest.i will refinance by the 5th year.
imo,you shouldn't be going with an interest only mortgage if you are going to be living in your house for a long time
hope this info helps.
i'm doing my first interest only mortgage on a rental that i just bought.
imo, & i am learning as i go......these type of loans should be used for a short term.
the one i have is a 5/1 arm where i pay interest only for 5 years (but can also pay principle & interest if i decide) but then after the 5 years i have to pay principal & interest.i will refinance by the 5th year.
imo,you shouldn't be going with an interest only mortgage if you are going to be living in your house for a long time
hope this info helps.
We use interest only loans on some real estate investments, mostly buy, reno, sell.......
Couple of questions???????
Area of your rental units
number of units
rents per unit, month
ave rent per month in your area
expenses per unit per month (Mort/tax/ins/ele/sew/water/trash/snow/grass/manag/ect).....
interest rate on loan
if your looking long term there are housing programs that work very well.low turn over ect.....
are you looking to keep or resell????????
Couple of questions???????
Area of your rental units
number of units
rents per unit, month
ave rent per month in your area
expenses per unit per month (Mort/tax/ins/ele/sew/water/trash/snow/grass/manag/ect).....
interest rate on loan
if your looking long term there are housing programs that work very well.low turn over ect.....
are you looking to keep or resell????????
I am in the middle of going with an almost interest only loan (1%) and it did cut my payment in half. Only reason I did it is that I currently have a great amount of equity in the home and I know that I will be here no longer than 10 years, probably less. AR is dead on - don't do it if you are planning to stay for a long time. Also, don't pay any lender's fees if you can avoid it. There is a lot of money out there for these kind of loans and if you don't jump I would bet that they will offer to do it at no charge.
