Posted by Charles Clark on January 08, 2003 at 18:44:53:
It benefits you in that every dollar you pay towards principal, reduces the amount of interest you are paying. What you have to ask yourself is, "if I put the money in an investment, can I get more yield than what interest rate I am paying.
Charles Clark
Interest Only loan mortgage - Posted by rich a
Posted by rich a on January 08, 2003 at 16:32:43:
I have an interest only loan mortgage with an adjustable rate that is fixed at interest only for five years. my question is if it would be beneficial to pay towards the principal if possible. we have no prepayment penalty for refinancing at any time. This is for our permant residence and not an investment property. i fugure we could easily add 100-200 a month towards the principal if it would be beneficial, given that we will probably look into refinancing after a couple of years if the numbers are good.