Interest Only Loans

Here are a few tips to help you decide if an Interest Only Loan is for you:

You may want an interest only if you:

• Aren't taking on more debt than you can handle.
• Expect your income to rise sharply in the next five years.
• Are disciplined with money.
• Are an individual who likes to take risks.
• Have an irregular income (like commissioned sales).
• Are content to let rising markets build your equity for you.
• Are confident that home prices will continue to rise.

You may not want an interest only if you:

• Have a lot of consumer debt you can't get a handle on.
• Plan on being in your house past the interest-only period.
• Are undisciplined with finances.
• Are borrowing a small amount.
• Plan on spending the extra cash on "discretionary" items.
• Plan to sell or refinance before the interest-only period ends.
• Want to lock in today's low interest rates.

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