Re: Buying house, interest only loan the way to go?
I don't understand the reason for getting an interest-only loan. If I remember correctly, the closing costs are a little higher and you pay interest on the principal that is not being reduced. So if a 30 year fixed has principal + interest of $250 + $750 you are paying the $750 part every month. Might as well pay the principal part too so you can reduce the interest a little every month and not have to deal with the exposure to a rate reset should you decide to keep the house as a rental property.
All that aside I still wouldn't do it because of the hassle and as mentioned the transaction fees will kill your bottom line.
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