Interest only mortgage

[utoh123]

Your post is not clear.

Per your question- other factors come into play.  Is this a house you live in- you are consuming?

The best value- is a house you are opening consuming. You live there- it has memories- you put sweat into it- you would other wise have to pay rent to live somewhere else.

 

Next- Im interested in what the carry costs are.  Carry costs are very important.  Taxes, Insurance, water and sewer can wipe you out.

 

I am 11 years into a 30 year fixed 5.5%.   So inflation - I am paying back with cheaper dollars then in 2007.  Very little goes to principle on 30 year fixed in the first 11 years.  Now as to interest only- I can park money in a CD and get what 1%?  Or I can pay down the mortgage and earn 5.5% in return. 

So in reply- I would consider an interest only mortgage-  but I would be prudent on all the usual facets of the set up. 

[FlorinCollector]

57 minutes ago, utoh123 said:

Your post is not clear.

Per your question- other factors come into play.  Is this a house you live in- you are consuming?

The best value- is a house you are opening consuming. You live there- it has memories- you put sweat into it- you would other wise have to pay rent to live somewhere else.

 

Next- Im interested in what the carry costs are.  Carry costs are very important.  Taxes, Insurance, water and sewer can wipe you out.

 

I am 11 years into a 30 year fixed 5.5%.   So inflation - I am paying back with cheaper dollars then in 2007.  Very little goes to principle on 30 year fixed in the first 11 years.  Now as to interest only- I can park money in a CD and get what 1%?  Or I can pay down the mortgage and earn 5.5% in return. 

So in reply- I would consider an interest only mortgage-  but I would be prudent on all the usual facets of the set up. 

I dont know much thats probably why it isnt clear I just wanted a better understand ing of what an interest only mortgage was and the ups and downs of it.