Tuesday, March 11, 2014

30 Year Fixed Rate or Interest Only Loan?

A good reason for choosing an interest only loan: 

Most people will make a decision to trade up their current house based on equity appreciation through sales prices going up. It is rare that the equity appreciation is based on their amortization of their 30 year fixed rate loan. That takes far longer. Therefore, if you are considering trading up, why not save the monthly outlay of the principle payments? On a $500,000 loan, the difference is over $600 per month!

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