Interest-only refinance is becoming more rare in the current financial climate, but if you can find a mortgage company willing to take that leap with you, congratulations. You have just earned yourself the most flexible mortgage payment going. In any given month you can pay anywhere from the bare interest all the way up to the interest and as much of the principle as your wallet can handle. If writing the same number every month gives you Carpel-Tunnel syndrome, look no further for the way to handle your home financing.
An interest-only mortgage refinance will provide you with unparalleled month-to-month flexibility. If you had a tough couple of days at the track and you do not want to pay anything down on the principle that option is there. The same applies whatever your vice. Maybe you really needed that boxed set of “Star Trek: The Next Generation” or you could not turn down a chance to own a vibrating chair. Maybe it’s Christmas and you need the extra cash to buy gifts for your 13 brothers and sisters with whom you shared the same one bedroom house while growing up. Whatever the purchase, this form of financing will allow you to make it without ending up in arrears.
Interest-only refinance rates are not as favorable as those of traditional refinancing are, but there are still hidden advantages. If you have an investment that will provide a greater return in the interim than putting that same amount of money into your home, you have the flexibility to make that choice and grab a fistful of pesos while Mr. Conventional Home Loan is left weeping in his corn flakes. There are dozens of things you could do with that cash that might save you more in the end. Pay off high-interest credit card debt, for example. Redo your driveway so your Lincoln does not fall off the side and into the woods. Buy your daughter a pony. For some, the look on her face when she sees her new pet worth paying an extra percentage point or two.
Only one thing might trip you up in your search for this golden goose. Interest-only refinance loans are being offered less and less as the financial weather turns for the worse and large mortgage companies tighten their ruby-encrusted belts. All you can do is ask a loan officer and hope for the best. If he or she does not immediately chuckle in your face and look at you as if you just said your uncle is St. Barnabas, you might be in business.
Interest-only refinance has its detractors, of course. Just do not fall for the old chestnut that says that by not paying down on your principle each month, you are not building any home equity. If you are in a place where property values are appreciating, you are building equity just by hanging on to your home. If all of this sounds interesting to you, you are not alone. Ask your loan agent about interest-only refinance today and see what he or she can do for you.
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