interest only loan vs. traditional mortgage?

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PLEASE READ CAREFULLY BEFORE ANSWERING:

For long term OR for short term… A loan salesman told me an interest only loan is better than a traditional one.

He said that if I take the difference in payments (interest only being cheaper; monthly) and add that to my payment, I’ll have paid off more in principal in 5 years.

i.e. $ 2K a month interest only vs $ 3K a month traditional. Take that $ 1K a month in difference and USE IT … apply it to paying down the principal on the interest only… and in 5 years I will have paid off more principal on the home than with a traditional mortgage. And I could refinance/sell/whatever and be in a better financial position.

So, after 5 years with interest only, paying an aditional $ 1K a month for principal, I will have paid off $ 60,000 of principal.

Even if I refinance, the loan amount will be $ 60K less, therefore, a lower monthly payment.

***YOURE ANSWER SHOULD FIND THE PROBLEM WITH THE LOGIC***

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