Interest Only Home Loan

[buildmybudget]

That's right, as long as you have reached a certain level of equity(I believe 20%, as minnie said) you can escrow on your own. Also, I think at that level you won't have to continue paying PMI either. Perhaps if you sink your extra commissions into your principal balance, you can get rid of PMI and take over your escrow...and avoid the colossally bad decision to refi interest only.

[EconoMutt]

I've casually contacted the lender and asked.
They said that escrow was required.
I think I will explore that option further.
In other words, I'll ask for a supervisor instead of talking to the part time customer service rep.
Thanks for the suggestion.

** No PMI

[TurnDebtIntoDebt]

It's not really a good idea. Only if you plan on staying in the home for about two to 5 years it might be ok. But there is still risks involved.

[wincrasher]

I didn't think that that product is even available now.

[EconoMutt]

I didn't think that that product is even available now.

I found a credit union that offers a HELOC with an interest only pay back.
I wasn't even aware they offered it until they asked if I preferred an interest only payment.

[wxman611]

Don't do it!! You might as well just rent instead of doing this? The real estate market really hasn't recovered that much so you would be screwing yourself.

[EconoMutt]

Don't do it!! You might as well just rent instead of doing this? The real estate market really hasn't recovered that much so you would be screwing yourself.

This loan would allow for principal pay downs. It just gives the option to pay interest only.