Thursday, October 11, 2007

Interst Only loan.......I am glad I didn't do it!

When we were planing on selling our own was easy to find the one and it took about a week of looking at 20 before we decided on one, we then put our other home on the market.
We were able to close on the new one before the old one closed because of our unusually high credit scores.

The only thing I was stuck on deciding was the type of loan we wanted.
Because it was still in the "Real Estate boom" period, we almost went with the interest only, for the reasons we could keep the payments low because of the lower interest rates, I was talked into just going with the traditional 30 yr fixed,no prepayment penalties at 5.8 and in today's market that isn't too bad as I now see that all these people who bought with hard money are losing their shirts.

My banker asked me if I ever made any extra payments during the year on my current loan and I said no and he said "then do you think you will on this one?"
In the end....I am glad and happy with my decision. There are even more foreclosures now than ever.

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