true true and true. i just dont like to get into something where the interest can change..
is your interest locked, or is it value at time of new sale/new mortgage? tw On Fri, 21 Jan 2005 10:58:15 -0500, Michael T. Tangorre <[EMAIL PROTECTED]> wrote: > > From: Tony Weeg [mailto:[EMAIL PROTECTED] > > no i dont think so. > > in fact, i equate these kinds of loans to payday check loan places... > > just doesnt add up, if you can afford to throw down at least > > some downpayment on the house, and get a 30 year standard > > loan. they make the most sense, and are a lot more secure as > > the INT, is set for 30 years. > > > > jayme and i got a 30 yr 100% loan, only had to drop 4k on the > > day of settlement, took the other 17k we saved and bought > > stuff for the house. it ended up being a VERY nice, easy > > 1500/month mortgage, right now, about 12k a year in INT, and > > the houses in our neighborhood are selling for almost 100k > > more than we bought ours for 2 years ago, jan. > > 3. so not only do we have a very standard loan, with no > > quirks, but the equity is slowly getting chipped away, > > through larger than expected monthly payments, and we still > > can take the 12k of interest payments off our taxes in a few weeks ! > > > > we do have a 1 point PMI, but that can be erased in a year or > > so, if we want to refinance and pay some closing costs etc... > > but thats to be determined. > > Tony, > > Don't be so quick to judge. The interest only (IO) is an OPTION not a type > of loan. I should have worded my post more clearly. If you get a mortgage > with an IO option and make the interest+principal payment, that is the same > as a mortgage without the option. The things to consider are these: > > Appreciation of house. In montgomery county, the home prices went up 70% in > the last 5 years!!! That is crazy. It is almost a gimme that your home will > appreciate over 5 or 10 years to make it worth the IO loan. > > Investing. If you take the difference between the mortgage with the IO > option and without and invest the difference, the long term gains could be > huge... Even going with low risk investment options. Personally, I would > make sure I maxed out my IRA, 401K, my fiance's 403B and had all debt paid > off. > > Duration at home. We are not sure we want to stay so close to DC in the long > run. We decided for the enxt 5 years or so we would like to stay in the same > area which also happens to be a hot spot for housing... Everyone wants it > and most are willing to pay top dollar for it. We happen to be in a unique > situation where we would be buying from someone we know and saving a lot of > money on realtor, etc. > > IO options are not quirks in my opinion. It is just another thing to > consider in order to maximize the situation. Also remember that the entire > payment you make is tax deductable, which will also help. Since we are not > considering staying there long term, we won't be buying any points as we > will not recoup the cost with such a short (relative to the mortgage) > duration in the home. > > Mike > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143756 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
