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Originally Posted by nashr
There is a "right way" to use an interest only loan. You get the lower payment, but you make the "full payment" and it ALL goes against the principal. That makes it a GOOD move. If, however, you simply make the minimum payment, then you are correct Thorn and its a stupid move.
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This would be the same as having a regular loan. You still have to pay interest on the loan. The real use of a no interest loan is buying a home in an area where the property values are rising fast and you plan on cashing in on property appreciation. It can be a good move if you sell out before values take a dive.
Beard
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Beard
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