interest only loan

cathilynn · #1 Nov 1, 2007, 10:30 AM

My daughter bought a condo 1 1/2 years ago with an interest only loan.
The value is now $30,000.00 less then when she purchased it.
She still owes $150,000. I feel she needs to get out of this loan, but I do not know what would be the best option for her. Any suggestions?

ebaines · Nov 1, 2007, 10:43 AM

Is she able to make her mortgage payments on time? Is she planning on staying in the condo for a few years? If so, then it doesn't really matter right now that the value of the house has fallen - at this point it's just a paper loss until she sells.

cathilynn · Nov 1, 2007, 10:58 AM

She is able to make her payments, but is not living there right now and wants to sell either now or at least within the next couple of years, unless she needs to do something differently to say herself financially.



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