scubasteve
Active member
Hey guys,
Is there a catch for this type of loan? I talked to someone that recommended this loan to me because he said the following:
1) interest rate would be locked for 30 years
2) I'm only liable for the interest payment (about 800 lower than my current 30 year fixed conforming)
3) I could always pay 800 more a month that would go directly towards my principle
At the end of the day, he said it would be the same payments I'm making now, but if an emergency ever happened, I would only be liable for the lower payment vs paying the interest + principle. This sounds really good, but I have no knowledge on this type of loan and I wanted to see what you guys thought about this.
I've always been adverse to "interest only" loans, especially with what happened to the housing industry in recent years, but this kind of loan makes sense to me as a young person from what the guy told me. Please enlighten me!
Yes I'm thinking about refi-ing before I even make my first payment!
Is there a catch for this type of loan? I talked to someone that recommended this loan to me because he said the following:
1) interest rate would be locked for 30 years
2) I'm only liable for the interest payment (about 800 lower than my current 30 year fixed conforming)
3) I could always pay 800 more a month that would go directly towards my principle
At the end of the day, he said it would be the same payments I'm making now, but if an emergency ever happened, I would only be liable for the lower payment vs paying the interest + principle. This sounds really good, but I have no knowledge on this type of loan and I wanted to see what you guys thought about this.
I've always been adverse to "interest only" loans, especially with what happened to the housing industry in recent years, but this kind of loan makes sense to me as a young person from what the guy told me. Please enlighten me!
Yes I'm thinking about refi-ing before I even make my first payment!