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Interest Only Loans


mreye

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OMFG!  I'm filling out an online mortgage app this very minute, and I have such a big headache.  It would be less trouble to just give up the thoughts of moving into a new place.  :crying

I just keep hearing the radio commercials and I'm wondering what the deal is with them. Is it a scam? On it's face it sounds like you'll never pay your house off or it will take 60 years.

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I'm staring at something called an 'InterestFirst 10/20' that is a 30 year fixed rate loan, but where you are just paying the interest on the loan for the first 10 years of the loan. That would save me about $200 a month now, and hopefully FutureFlaxx will ave more scratch and can pay the higher monthly nut down the road.

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I'm staring at something called an 'InterestFirst 10/20' that is a 30 year fixed rate loan, but where you are just paying the interest on the loan for the first 10 years of the loan.  That would save me about $200 a month now, and hopefully FutureFlaxx will ave more scratch and can pay the higher monthly nut down the road.

OK. I see. Thanks. These are getting more and more popular, huh?

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Typically interest only loans mean you just pay the interest for 60 months and then you start paying principal.

 

Its a nice deal if you have a rental property or if you don't plan on living at the property for an extended period of time. Plus it keeps more cash in your pocket for investment or whatever else you want to do. It all depends on what you'd use the risidual cash on.

 

If you guys have any questions on loans, just ask me, its what I do :)

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Typically interest only loans mean you just pay the interest for 60 months and then you start paying principal.

 

Its a nice deal if you have a rental property or if you don't plan on living at the property for an extended period of time.  Plus it keeps more cash in your pocket for investment or whatever else you want to do.  It all depends on what you'd use the risidual cash on.

 

If you guys have any questions on loans, just ask me, its what I do :)

Thanks, Jason.

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What's the dealio?

It is a great deal depending on your situation. There are many type of interest only loans though. If you are planning on making more money 10 or 15 years down the line then this is good for you. It will cut your payments nearly in half for the first 10-15 years, however after that it will be significantly more.

 

I like it, especially the way Steff used it, for investment. Property never goes down. If you can afford the down payment at the current interest rates you would be doing a very good thing.

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