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MissJones
I need a nap!
Member since 5/05 22150 total posts
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X
N/M
Message edited 4/29/2007 7:19:58 PM.
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Posted 4/26/07 7:37 PM  |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: What can you say about interest only loans?
that's how I feel 
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| Posted 4/26/07 7:42 PM |
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meghanmetz
LIF Adolescent
Member since 5/05 525 total posts
Name:
Meghan
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Re: What can you say about interest only loans?
90% of the time, I say they're a bad deal. There are instances and times where I do think they're a smart move.
If you're getting an interest only because you can not afford a traditional mortgage, generally a bad move.
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| Posted 4/26/07 7:49 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: What can you say about interest only loans?
Posted by meghanmetz
If you're getting an interest only because you can not afford a traditional mortgage, generally a bad move.
you expressed yourself better than I did  I agree completely!
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| Posted 4/26/07 7:51 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: What can you say about interest only loans?
Posted by SweetestOfPeas
Posted by meghanmetz
If you're getting an interest only because you can not afford a traditional mortgage, generally a bad move.
you expressed yourself better than I did I agree completely!
i agree as well, but if you work in a job that is not a steady paycheck each month - like commission, then its a good option because during months where you have more money you can pay more towards the principal, and months where you do not have as much, your payment will be smaller.
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| Posted 4/26/07 8:19 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: What can you say about interest only loans?
from what i understand... stay away from them
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| Posted 4/26/07 10:21 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: What can you say about interest only loans?
I have one for a condo I own in AZ. I know I won't be keeping the property long and it's a much cheaper way to go for a short term. It's a 10 year interest only. I will probably sell it next year.
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| Posted 4/26/07 10:48 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: What can you say about interest only loans?
Oh boy - here we go again! the IO debate.
It's somewhat silly to say that IO's are BAD.... IO's are good for some, and bad for others, just like traditional 30 yr mortgages are good for some and bad for others. Just because it wouldnt work for you, doesnt make it bad.
My husband and I work in an industry that is largely bonus based. we have a gauranteed bonus at the end of the year that enables us to paydown our mortgage in large quantities at one point in the year. An IO allows us to do this without penalty. Most people are not in that situation so in most cases an IO is inappropriate.
As the PP said - any time you make a loan work to buy something that is realistically more than you can afford can get you into a bad situation. I suggest you talk to you mortgage banker/broker about what type of loan is best for you.
Message edited 4/27/2007 9:20:14 AM.
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| Posted 4/27/07 9:18 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What can you say about interest only loans?
being that my DH is in sales- a mortgage banker to be exact
we will most likely be doing an interest only loan- it will be easier to us to not have to worry about a HUGE payment on a off month- and on a good month- we will pay extra
he doesn't get paid the same amount every 2 weeks- which makes life harder to plan for- so an I/O loan is perfect for our situation
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| Posted 4/27/07 10:23 AM |
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skew
LIF Adult
Member since 5/05 6794 total posts
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Re: What can you say about interest only loans?
depends on the situation, works GREAT for me. IMO, it is all about leveraging money.
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| Posted 4/27/07 11:07 AM |
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IrishMom77
Brothers!!
Member since 8/05 3498 total posts
Name:
Roseann
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Re: What can you say about interest only loans?
My DH and I have one
We are in our starter home and wont be in it for more than 5 years...that is when they are good ideas. If we were going to stay in the house longer..we would have gotten a traditional mortgage. Its lower payments true, but we pay extra money whenever we can
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| Posted 4/27/07 1:49 PM |
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NoStressMom
My Heart and Soul
Member since 5/05 11122 total posts
Name:
D
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Re: What can you say about interest only loans?
Posted by skew
depends on the situation, works GREAT for me. IMO, it is all about leveraging money.
we have it on our investment home in SC which is working out great for us!! I have no problem with it at all
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| Posted 4/27/07 2:10 PM |
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Tine73
Member since 3/06 22093 total posts
Name:
*********
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Re: What can you say about interest only loans?
Posted by skew
depends on the situation, works GREAT for me. IMO, it is all about leveraging money.
Us too...
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| Posted 4/27/07 2:46 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: What can you say about interest only loans?
Posted by Blu-ize
I have one for a condo I own in AZ. I know I won't be keeping the property long and it's a much cheaper way to go for a short term. It's a 10 year interest only. I will probably sell it next year.
Us too - for investment property and the tenants pay the note. It's a great option for some and not so great for others. Weigh your options with your mortgage broker.
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| Posted 4/27/07 10:12 PM |
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