intrest only (by ben [or]) Mar 5, 2004 2:09 PM
        RE: intrest only (by Dan [MA]) Mar 5, 2004 2:34 PM
        RE: intrest only (by BEN [OR]) Mar 5, 2004 3:32 PM
        RE: intrest only (by Deb [NY]) Mar 5, 2004 3:53 PM
        RE: intrest only (by Leigh [CA]) Mar 5, 2004 6:52 PM
        RE: intrest only (by ALDO [WI]) Mar 5, 2004 9:26 PM
        RE: intrest only (by Leigh [Ca]) Mar 5, 2004 11:12 PM
        RE: intrest only (by ben [or]) Mar 6, 2004 1:52 AM
        RE: intrest only (by tyler [nc]) Mar 6, 2004 9:25 AM
        RE: intrest only (by Leigh [CA]) Mar 6, 2004 10:00 AM
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intrest only (by ben[or])
Posted on: Mar 5, 2004 2:09 PM
Message:
Interest free mortgage, has anyone used one of these for a purchase? As some know, its hard here in oregon to buy and have a positive cash flow. This might help. And after all not very much of your payment goes toward pay off . I have a meeting with my mortgage broker in two weeks, ill find out more about them at that time. Just wondered if anyone here has any ideas on them. Thanks --67.171.213.51


RE: intrest only (by Dan[MA])
Posted on: Mar 5, 2004 2:34 PM
Message:
Interest only and interest free are two very different things. Assuming you mean interest only, make sure the property generates cash flow because if a bad market doesn't give you any appreciation, you'll need that cash flow to ultimately pay off the note that hasn't gone down any. --24.128.227.165


RE: intrest only (by BEN[OR])
Posted on: Mar 5, 2004 3:32 PM
Message:
I MENT INTREST ONLY, SORRY --208.26.157.253


RE: intrest only (by Deb[NY])
Posted on: Mar 5, 2004 3:53 PM
Message:
I am also interested in interest only- we just went to refinance our properties and the mortgage borker suggested this to increase our monthly cash flow- but I don't want to find myself in 30 years with nothing? Is it only for a fast appreciating market? --129.44.215.221


RE: intrest only (by Leigh[CA])
Posted on: Mar 5, 2004 6:52 PM
Message:
It depends on how long you are keeping the properties.

I get all my loans from WAMu and get a choice whether to pay the lower payment (interest only) or pay on principle. In a good month, I pay some on principle but it gives me the option of more cash flow when everything needs replacing.

If you plan to keep the property a long time and want the stability of a fixed, then do that. In the long run variables save you money if you can tolerate the risk of the payment going up.

I don't hold much of my portfolio past 5 years anymore because of the accelerating Ca market, so I like those interst only loans. I especially like the loans with a low start rate because the first two years there are extra expenses from deferred maintainence and sometimes inherited tenants have low rents... as the payment goes up, so do the rents. --68.6.217.217



RE: intrest only (by ALDO[WI])
Posted on: Mar 5, 2004 9:26 PM
Message:
In most cases, I simply don't understand the logic of interest-only notes. On a new note, the principal payment is, what?, twenty bucks? If I needed the $20 that bad, I'd have passed on the property to begin with. Even if this were to be a short term note (on a flipper), that $20 really isn't going to hurt. Many of us spend more than that at McDoodoo's or Burger Barf. --24.94.253.130


RE: intrest only (by Leigh[Ca])
Posted on: Mar 5, 2004 11:12 PM
Message:
The difference in my loans is more. The total between interest only and P&I for all my loans is close to $2000. I haven't made the jump to big cash flow yet and I haven't a "day Job".........investing is it... until I do my next exchange, that extra $24,000 per year comes in handy.

So it is not just burger $$$ for me!!! --68.6.217.217



RE: intrest only (by ben[or])
Posted on: Mar 6, 2004 1:52 AM
Message:
back home after my day (night) job. good info all around. Aldo right the 20 bucks wouldn't make mo do one, but 100 to 150 might. volume, volume, volume! Leigh, what's a wamu loan? Thanks, time for bed ten to two am west coast time. working on the rehab when i get up in am. --67.171.213.51


RE: intrest only (by tyler[nc])
Posted on: Mar 6, 2004 9:25 AM
Message:
Ben....its washington mutual...they offer a variable rate 4-0ption pay plan loan....pay on 30y, 15, interest only, and a neg. amortizaton option....the loan readjusts every year based on outstanding principal and how many years are left in the loan... --205.188.209.16


RE: intrest only (by Leigh[CA])
Posted on: Mar 6, 2004 10:00 AM
Message:
Thanks Tyler for answering the question. I love those WaMu loans....they have saved me when everything goes wrong at once... don't use the neg option though, also investor friends say it doesn't make a hill of beans if you fix up and flip in a few years you can't find the $1000 more you owe of the property. --68.6.217.217