What Is an Interest-only Mortgage? | LowerMyBills

[@baylielin8979]

This was informative. I was a single parent and purchased a $300000 home for me and my 2 kids. It’s interest only. My payment originally was $1800, and over time increased to $2600. I have been paying for 18yrs on a 30 year mortgage. I didn’t qualify to refi, but we are fine. Of course my kids are grown, but interest only worked for me. The biggest thing is to refi early on if possible.

[@BlakeWheelersBurnerAccount]

You are have been living in the present too much. You have been paying INTEREST ONLY for years aka money that disappears while you put nothing on the principal. You have been getting robbed. It’s crazy, it’s literally in the name and people still sign up for it.

[@SunniSide1]

Thank you! This was really helpful!

[@Scooterp82]

very informative!

[@Jaystonishing]

😂 never do this type of loan.. never!

[@Juicedapipsqueak10]

If you’re poor yeah

[@BlakeWheelersBurnerAccount]

@@Juicedapipsqueak10no one ever should. Imagine willfully signing up for an interest only payment while the principal still must be paid.

[@Juicedapipsqueak10]

What if I use the tax write off towards principle?

[@yash.rockinstar]

Informative😊

[@LowerMyBills]

Thanks 🙂

[@saulferreyra4559]

@lowerMyBills Are there any limitations on refinancing this loan? Or can it be refinanced at any time through the loan period?

[@nwalker2619]

I think you can refi after the prepayment penalty period end.

[@danb3980]

How did you calculate the payment (P&I) after the 10 years? And how’d u calculate the original interest only payment?

[@LowerMyBills]

Thanks for your question! For a better breakdown, including several examples, check out the article in our Learning Center: www.lowermybills.com/learn/buying-a-home/interest-only-mortgages-how-do-they-work/ - Thanks!!

[@siyinglyu8125]

I have a question. If the price of the property goes up, and I sell it, would I still get the capital gain? I am confused since you mention the equity is not increasing.

[@nwalker2619]

If the home appreciates you should get the difference still

[@billie-jodowling4525]

Hey bro, is that intrest you get, taxed?

[@christineabercrombie7316]

I don’t have an interest only mortgage. I’m pissed mine went up at all and I think it’s bullshit and I’ll find out.

[@danb3980]

Only reason this happened is due to your assessment. Property/school taxes prob went up (assuming you escrow)

[@roshglock]

Nope.