This might be kinda personal but I am just wondering how many people are like me and my wife have some pretty creative home financing.
What I mean is you probobley could not have gotten in your home unless
you got a interest only payment and variable interest rates or have a loan where you pay a minimum payment each month.
We could probobley get a more stable loan but we would be streaching it big
time and do not want to try it.
From what I hear is it seems like there are alot of people with these loan's
and I might feel a little better if I know more people have thease loans.
So if you have one of these type loans and would not have been able to get
into home with out this type of loan then let us know so we can all feel a little better.
Thank's Doug

RickJ

I've done some pretty creative stuff in the past, including getting one loan for the downpayment and another for the rest, getting the seller to finance my downpayment, etc...

The key is confirming what will happen later: When will the loan adjust and what will the adjustment be based on.

The foreclosures and bankruptcies are going up quickly now that some of these "creative" loans are adjusting - and the "small print" of the loan agreement is coming into play.

Just be sure you know exactly what's going to happen when the "creative" part is over.

caibuadday

interest only payment=== renting; you will never pay off the principle... the longer you holding on to a home loan the more rish you have ( lost income =lost house)... the faster you paid off a house the less interest you have to paid...yeah a lot of people have creative loan and at the same time alot of these people have to give up their home 6 months after they lost their job

Dr D

I've been originating home mortgages for well over twenty years and the current crop of mortgage products is overwhelming. Most consumers probably don't have a clue what they are getting. The Interest Only loan which is usually fixed for 3,5,7 or 10 years turns into a one year ARM after that. The longer the fixed period the higher the rate. This can be great for the borrower who intends to move after the fixed period because they can buy more house. Or it can work for the person who may have child support obligations, student loans or other debt that will be gone after the fixed period. Most people with this lower house payment just spend more. A 5/1 IO loan @5.5% for $100K would have interest only payments of $458.33. After 5 years the principal and interest payment would go to $614.09 if the rate stays the same ($100K for 25 yrs), a 34% increase. If the rate went to 7.5% the P&I goes to $738.99, a 61% increase. Many of the newer 5/1 & 7/1 IO ARMs can increase 5% on the first adjustment. Look for good forclosure bargains when the chickens come home to roost.