From: "FDR" <_remove_spam_block_rzitka@hotmail.com>
Newsgroups: misc.consumers.house
Subject: Re: Have Interest Only -- Should I Refinance to 30 year Fixed?
Date: Tue, 19 Jul 2005 14:50:18 GMT


"CL (dnoyeB) Gilbert"  wrote in message 
news:n82dnerJCfh5mUDfRVn-ug@comcast.com...
> sactomike wrote:
>> My wife and I refinanced our house back in Feb (2005)to an interest
>> only loan.  At the time we only planned to stay in the house for 1 - 3
>> years.  Now we think we may be there longer and are questioning the
>> wisdom of going with an interest only loan.  So, my questions are:  1.
>> would it damage our credit to refinance again so soon?  2.  would the
>> extremely short time we've had the mortgage (5 months) make lenders
>> hesitant to do business with us?  Thanks in advance!
>>
>
> "Credit rating" is a ploy used against those seeking loans and whatnot. If 
> you know you are good for it, don't accept any junk loans because they 
> claim you are not.
>
> 1. Yes.  Just to inquire about another loan 'damages' your credit.  They 
> will tell you anything if they think they can get more money out of you. 
> Each inquiry from a lending agency will appear on your record and the 
> lenders will claim this is a negative.  If you find a reputable lender 
> they will ignore this.
>
> 2. Yes they will claim so if they think they can get more money out of 
> you.  If they start talking about how bad your credit is, its time to find 
> a new lender.
>
> I can't imagine a situation where an interest only loan is good.

From what I have read, it's usually used in situations where the owner wants 
to use the extra cash to payoff loans or high credit card debt or in cases 
where they don't plan on living in the house for longer than a few years. 
Makes sense since in the first few years youy are paying mostly interest.

>
>
>
> -- 
> Respectfully,
>
>
> CL Gilbert