From what I understand about mortgages, which isn’t a lot at all, I just don’t see any scenario where an interest only mortgage is a good idea.
You pay it off for let’s say 20 years and you still have the full balance remaining. What am I missing?
In: Economics
When we did it in 06 just before the crash the loan person at wamu sold us on it like this “interest only for 1 year, then you refi next year when you have equity and you will get a far better rate.” And we bought into it. 312k interest only, then later that year the market crashed. We go back the following year to refinance and the house was only worth 285k based on comparables. So we got fucked on the timing on that. Had we did it a year earlier it 2kukd have been fine bit that market crash really fucked people in the end.
Latest Answers