Timeline for Is an interest-only mortgage a bad idea?
Current License: CC BY-SA 3.0
25 events
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| May 1, 2022 at 19:45 | comment | added | OpenStack | Year 2022 & I am in the same boat. Asking same question. Can you please tell me what option you choose and how did it worked for you? | |
| S Aug 25, 2016 at 1:24 | history | suggested | RoboKaren | CC BY-SA 3.0 |
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| Aug 25, 2016 at 1:03 | review | Suggested edits | |||
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| Aug 24, 2016 at 19:30 | answer | added | Pete B. | timeline score: 0 | |
| Jul 8, 2011 at 8:27 | history | tweeted | twitter.com/#!/StackFinance/status/89249264194170880 | ||
| Jul 8, 2011 at 1:15 | vote | accept | mpenrow | ||
| Jul 7, 2011 at 20:40 | answer | added | Chuck van der Linden | timeline score: 8 | |
| Jul 7, 2011 at 20:06 | comment | added | mpenrow | @DJClayworth - I agree this info changes the whole question. That's why I edited it as soon as I realized this. The rate they are offering is essentially 3% which is 2% less than a typical 30 year fixed mortgage. I wish they were offering a 2% rate that would rock. | |
| Jul 7, 2011 at 19:57 | comment | added | DJClayworth | EDIT2 makes a huge difference to this question, effectively making half the answers here irrelevant. The difference is now between a rate that is fixed only for five years and a longer fixed rate. | |
| Jul 7, 2011 at 19:50 | comment | added | DJClayworth | Are you sure something isn't wrong here? I checked ING Orange mortgages interest and the 5 year variable mortgage rate is 3.25%. You're not really getting 2% less than that, are you? | |
| Jul 7, 2011 at 19:42 | comment | added | mpenrow | I tried to answer the questions in my edit2 above. | |
| Jul 7, 2011 at 19:41 | history | edited | mpenrow | CC BY-SA 3.0 |
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| Jul 7, 2011 at 19:29 | comment | added | Chuck van der Linden | In terms of missing something. An 'interest only' loan places the bank at higher risk because their exposure (amount you owe) is never reduced, so normally I would not expect such a loan to have a lower rate than a fixed period loan. Are you SURE that the "Lower Rate" is not perhaps because you are looking at an ARM loan? Or perhaps you are confusing 'lower rate' with 'lower payment'. What is the actual rate and loan period you are looking at? BTW in order to provide good answers, it would be useful to know how long you expect to stay in the property before selling. | |
| Jul 7, 2011 at 19:18 | comment | added | Chuck van der Linden | What affect does making payments towards principle have on your loan payment with such a loan? With a normal loan, the amount of interest you pay each month is less and less, and the amount of principle more.. but with this interest only loan, will the payment(interest only) stay the same even if you make a principle payment? | |
| Jul 7, 2011 at 18:51 | answer | added | MrChrister | timeline score: 3 | |
| Jul 7, 2011 at 18:47 | comment | added | MrChrister | How long is the loan for? What is the backup plan in case you lose a job or the economy crashes farther? | |
| Jul 7, 2011 at 18:38 | answer | added | Randy Coulman | timeline score: 4 | |
| Jul 7, 2011 at 18:36 | answer | added | gef05 | timeline score: 2 | |
| Jul 7, 2011 at 18:25 | history | edited | mpenrow | CC BY-SA 3.0 |
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| Jul 7, 2011 at 18:03 | history | edited | mpenrow | CC BY-SA 3.0 |
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| Jul 7, 2011 at 18:03 | comment | added | mpenrow | I just talked to ING and I am allowed to pay extra towards principal without penalty. | |
| Jul 7, 2011 at 16:54 | answer | added | Dheer | timeline score: 2 | |
| Jul 7, 2011 at 16:48 | comment | added | Michael McGowan |
I also need to confirm with ING that I am allowed to pay extra towards principal without any penalties. Without knowing for sure, I'm going to guess that you already identified the sticking point there.
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| Jul 7, 2011 at 16:39 | history | edited | mpenrow | CC BY-SA 3.0 |
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| Jul 7, 2011 at 16:28 | history | asked | mpenrow | CC BY-SA 3.0 |