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Rainmaker
778,245
The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Whatever works for them.

Jan 19, 2019 05:04 PM
Ambassador
5,167,501
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

That is for others to decide.

Jul 29, 2018 08:07 PM
Ambassador
948,935
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

We still have interest-only options, Winston.  They're not as common as in the past, but we've still got em.  

 

I think high LTV I/O loans are tricky, because even a slight market reversal can put people underwater and cause a major ripple effect (like we saw during the meltdown), but with some equity built into the home as a buffer, I/O loans are really great (and safe) options for a lot of folks.

Sep 10, 2015 05:28 AM
Rainmaker
1,525,205
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Maybe in very rare cases, but there should be a whole lot of disclosure to prevent problems.

Sep 10, 2015 02:59 AM
Rainer
21,910
Mike Sasse
OfferPad Home Loans, LLC - Scottsdale, AZ
Sales Leader

Honestly, it depends on the market that you are in. Here in Hawaii, I see them coming back. However, the product isn't being used to get low income buyers into elite income properties. The guidelines to qualify for the loan are sometimes more stringent than a 30-yr. It is really about the client's short and long term plans with the property and what the market is doing. Is it worth it to take an I/O loan for a few years in Honolulu to build $100K equity with the housing prices escalating? Absolutely? Somebody in Michigan doing the same? Doubt it.

Sep 11, 2015 09:23 PM
Rainmaker
3,919,774
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

I believe there is still that option with some lenders.  Borrower knowledge of the product and the ability to repay as agreed is still paramount.  

Sep 11, 2015 01:04 AM
Rainmaker
1,157,435
FN LN
Toronto, ON

Many banks offer interest only loans and lines of credit. 

Sep 10, 2015 08:27 PM
Rainmaker
1,676,560
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

The average one stays in their home is 5-7 years. What do they really pay down on a balance? My opinion is  the default rate is higher for those only putting down 3.5 -5% like FHA loans. 

Sep 10, 2015 12:05 PM
Rainmaker
2,472,519
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

It sounds good to me Winston.

Sep 10, 2015 11:51 AM
Rainmaker
826,808
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Yes, as long as the buyer has acceptable credit,  6 months mortgage payments in reserve, employment is verified, and can put at least 10% down. But not sure why anyone would want interest only these days?

Sep 10, 2015 08:08 AM
Rainmaker
864,258
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Nope, unless the buyer is capable of putting 20% down. 

Sep 10, 2015 07:53 AM
Rainmaker
3,985,765
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

NO!!!

Sep 10, 2015 05:52 AM
Rainmaker
4,684,867
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have a seller right now that still has their interest only loan, and has to now sell because the payments will hike so high they cannot afford them.  Think not.   Maybe then homeowners won't be tempted. 

Sep 10, 2015 05:47 AM
Rainmaker
864,796
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Yes I do.

However the bank must be required to keep that loan in their portfolio.

Sep 10, 2015 05:39 AM
Rainmaker
634,272
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

No.

Sep 10, 2015 04:59 AM
Rainmaker
1,373,168
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Only if the clients are paying cash!

Sep 10, 2015 03:33 AM
Rainmaker
1,961,657
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Yes but on a very limited basis

Sep 10, 2015 02:57 AM
Rainmaker
212,655
Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

No, I don't think it is a wise choice.

Sep 10, 2015 02:12 AM
Rainmaker
1,132,095
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I think those not qualified should wait til he have saved enough.

 

Sep 10, 2015 12:59 AM
Rainmaker
6,313,177
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

The mortgage interest rates are so low that there is little need for interest only loans. 

Sep 10, 2015 12:52 AM