For owner's nouns. The owner will loan 406000 for 15 years interest merely mortgage for 5.75%? Is it apt?
Answers:
Maybe...but in 15 yrs the integral principaol will be due..and if you cannot get refinanced...you get screwed....merely as the "few" did lately by banks.
Take that rate and run beside it. Now days with stellar credit, people are getting 8%. You may hear different on the radio but those are specialized loans. Those types of loans are a big inflict of the Real Estate fallouts in the US.
I thought that an interest only loan was only just that.
So at the end of 15 years you will still owe 406000
How would THAT be a good deal?
owner will probably be comatose
you wont have much if ANY equity in the home since you will still owe the artistic amount meaning that you will have to bring out another loan for the 406000 (well more than that since you will have to pay taxes and adjectives of those fees which will increase)...I would pass and purchase a home that I could afford NOW
If you are even considering this option, you cannot afford this home.
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