I'm stunned

[lapsedagnostic]

Quicken Loans now offers a mortgage where you don't have to actually pay the principal. just the interest.

Really.

I'm stunned by the evil beauty of it all.

I guess after thirty years you have a hell of a balloon payment.

Comments

[lalartu.livejournal.com]

So not that I have a full grasp on all the implications, but as I understand it.

say you have a 30yr fixed with 10 years of interest only...
If you only pay the interest you get to have interest plus principal
at a 20yr payoff rate in 10 years, and no equity from paying down
the principal.

that scares me. it does sound good for investment properties if you are planning to improve and flip them.