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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Interest only loan
Does anyone know how this works???
Does it save you money on your monthly payment?
Are there draw backs to doing this?
Thanks
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Posted 8/25/05 3:48 PM  |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Interest only loan
I wouldn't use one for a principal residence....
This might help
Interest only mortgages
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| Posted 8/25/05 4:01 PM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: Interest only loan
Thanks 
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| Posted 8/25/05 4:07 PM |
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Leeners
:)
Member since 5/05 4898 total posts
Name:
Eileen
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Re: Interest only loan
The major drawback is that while you'll have relatively low payments for the first few years, it jumps up considerably after that. Unless you're expecting your salaries to literally triple in the next three to five years, I wouldn't do it.
A lot of people are doing it to 'flip' houses. But, with the market in a pretty precarious position right now, it's obviously not the safest investment. There are a number of studies out there right now on how many foreclosures they're expecting in a few years, mainly from people who took out these types of loans.
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| Posted 8/25/05 4:12 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Interest only loan
The last time I gave my opinion on Interest Only loans on LIW.... i got flamed to crap for it with people accusing me of "assuming and not knowing what their personal financial situation is like". LOL
So I am keeping my mouth shut. (listen to the people that posted before me instead) 
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| Posted 8/25/05 4:34 PM |
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Tah-wee-ZAH
Kisses
Member since 5/05 15952 total posts
Name:
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Re: Interest only loan
It's dangerous financially.
Yes, your payments will jump considerably after a few years. You won't be paying down any principal (the amount you borrowed) and it will take a lot longer to own the home.
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| Posted 8/25/05 5:40 PM |
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MsG
Should be working
Member since 5/05 2824 total posts
Name:
G
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Re: Interest only loan
It sounds like a good idea for people who make most of their income in a once-yearly payment (whoever that may be) or maybe, maybe some Wall-Streeters who get huge bonuses. The idea would be you put the once-yearly windfall toward your mortgage.
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| Posted 8/25/05 6:20 PM |
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LadyPrincess
Live Life with No Regrets
Member since 5/05 2298 total posts
Name:
Chris
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Re: Interest only loan
i was just looking into this. great info
Thanks
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| Posted 8/25/05 7:16 PM |
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mskimmy98
My twins are one!!!
Member since 5/05 2540 total posts
Name:
Kimberly
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Re: Interest only loan
Yes Great info.. Thanks Girls!
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| Posted 8/25/05 8:34 PM |
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