Interest Only Loans
Got a letter in the mail a couple of days ago that was talking about lowering your mortgage payment. Like most people I am all for that! The letter showed that I could save a couple hundred dollars every month. This caught my attention, but was also thinking what is the catch. The letter was talking about an interest only loan. The low monthly payments could last from 3 to 7 years then the interest rate raises and they force you to start paying on the principle. This means your monthly payment could jump 200-400 dollars a month. WOW, no that is not cool. This is not looking that good to me any more, since I plan on staying in my current house for more than 7 years. This might be an option for someone that is planning on moving in a couple of years.
I then decided to start checking out the current interest rates and found that what I thought was really low is no longer low. So I will be checking out bankrate.com and maybe LendingTree.com but they require more information and is a one time deal.
I found this Refinancing Mortgage Calculator that I will be using to see how much I will be saving.
Does any one know of any other good sites?