Art of coupage - sorry - mortgage

Luigi
you can get a fixed rate of 1-30 years at interest only pamnyets. the loan term remains at 30 years. so you can get a 5 year interest only loan based on 30 year pay back term. what this means is that the first five years you are required to make only interest pamnyets. any amount more than that paid will get applied to principle. after the 5 year term comes up, the loan is still open but now your pamnyets either adjust to the market at the time and/or your pamnyets become principle and interest.Interest only loans are good if you get them fixed for 5 years or more. it helps make pamnyets more affordable, but you never pay down your balance. if you ever plan on moving within 10 years, dont get a loan that requires principle and interest. if you know you will never move again, then go for a principle and interest payment as long as you can afford it.