Interest Only Loans: Are they For Me?
A: ONLY If you are are NOT taking this type of mortgage product so that you can afford the purchase price of the apartment you are about to buy. Read that last senetence again if this applies to you, and then read the post for more detailed opinion.
INTEREST ONLY LOAN: a loan where the principal is paid back at the end of the term and only interest is paid during the term. The payment covers only the interest and the actual loan balance remains unchanged.
There are 3 things that scare me in this world: Diets, Turbulence, & Interest Only Loans!
It amazes me that even after the collapse of the greatest Stock Market Bull Run ever, that people havent learned their lesson about living a financially sound lifestyle. Let me be clear when I say this...
IF YOU PLAN ON BUYING AN APARTMENT, WHEREBY YOU NEED TO TAKE A INTEREST ONLY LOAN PRODUCT TO BE ABLE TO AFFORD THE MONTHLY PAYMENTS, THEN YOU ARE BUYING A HOME THAT YOU CANNOT AFFORD!