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Rainmaker
791,606
The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Whatever works for them.

Jan 19, 2019 05:04 PM
Ambassador
6,689,776
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

That is for others to decide.

Jul 29, 2018 08:07 PM
Ambassador
1,093,355
John Meussner
Catalyst Mortgage - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, 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
1,525,616
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
22,060
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
4,739,220
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 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
1,157,841
FN LN
Toronto, ON

Many banks offer interest only loans and lines of credit. 

Sep 10, 2015 08:27 PM
Rainmaker
1,677,365
Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
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
2,490,276
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
933,268
Jeff Pearl
Samson Properties / 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
864,758
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
3,986,473
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

NO!!!

Sep 10, 2015 05:52 AM
Rainmaker
6,006,148
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
921,504
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
634,582
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

No.

Sep 10, 2015 04:59 AM
Rainmaker
1,513,143
Raymond E. Camp
Ontario, NY

Only if the clients are paying cash!

Sep 10, 2015 03:33 AM
Rainmaker
2,444,970
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
212,810
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
1,262,452
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
8,153,230
Roy Kelley
Retired - Gaithersburg, MD

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

Sep 10, 2015 12:52 AM