Can I benefit from refinancing my home with an Interest Only loan?
Currently I have a 30 year fixed rate mortgage with a balance of $362,000 at a fixed rate of 2.375%. My home would appraise for approximately $500,000. I am retired and expect to sell our home within the next 10 years. by Williecat47291 from , California. Nov 30th 2021
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
I'm not a fan of interest only products. All you need to do is look back to 2000 - 2007 to tell anyone why. With that said, obviously an interest only payment is lower, as you are not paying down any principal. You borrow the $362,000 today, and you still owe the same $362,000 10-years from now after 10-years of payments. If you have plenty of equity now, it can be a viable option for a select few people. Just tread lightly. I lend for homes in MN, WI, IA, ND, SD. I can be found at JoeMetzler.com - Cambria Mortgage, NMLS 274132
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