Blog Category: Interest Only loan

October 18th, 2011 interest rates going up
October 18th, 2011

Interest Only Loans

Anyone that reads my blog knows that in general I am not a fan of Interest Only (IO) loans. I have said before that an IO loan is like putting your mortgage on a credit card. But on a refinance it may make sense for a few reasons. If you have already built a lot of equity it may make sense. And if you are more interested in savings than equity building. And if you know you are not going to live in the property forever so have no interest in getting the mortgage paid off.

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Categories & Tags interest rates, Loan Types, , ,

October 21st, 2009 dead end sign
October 21st, 2009

Interest Only Loans, Cool or Fool?

Do you remember when Interest Only loans were all the rage? And now I never get a phone call about them, and the only loan that anyone wants is a 30 year fixed-rate (and the occasional 5 Year ARM-fully amortizing by the way). How is it that we can dupe ourselves so easily in the middle of an investment bubble and lead ourselves to believe just about anything? Below is an old e-mail that I dug up that I wrote someone when they inquired about an Interest Only loan. I thought it was interesting. Read More

Categories & Tags Loan Types,

March 7th, 2010 house and keys
March 7th, 2010

Refinance To An Interest Only Loan?

I always felt like an “Interest Only” loan (where you pay no principal and are only making the interest payments on the loan) was like taking your house and putting it on a credit card. I was never a big fan of these loans. As a result I never did many because clients always sensed my unease, and ended up going to the competition who talked these loans up as a great way to “get in the market.” Read More

Categories & Tags Refinance,