Long Term, Interest Only Mortgages?

I did man. There are no prepayment penalties on most I/O loans. The minimum payment is just that, a minimum. has nothin to do with market risk. Like vp said, you get one of those loans for flexibility, but you pay the fucker down some.

Damn, any loan really needs to be paid down 6% just to cover the damned agent commissions. Even then, you still wont break even.

 

I disagree. It depends on the term of the loan, the time spent at the residence, the rate, the cashflow, so many things.

If you put down 20%, stay for 5 years, move, and can't sell it for what you paid, that's worse than INT only, zero down, there for 5 years and bringing a check to close.

But this is a different subject.

 

so when you get to the 10 year and you are still paying 100% interest and no princible unless you choose to pay it and the interest rate now becomes variable at 8 percent or so....you think this is smart? You could be fixed and paying more than 1/3 to 1/2 of your payment to princible at the 10 year mark and actually own the house.....

anyway you slice it 10 years interest only with no plans of refinance or sell is a HUGE risk....you have nothing when you are done if you don't pay towards princible and there is a chance the area goes bad or interest rates return to 8%.

Interest only is a SHORT term solution to finacially strapped individuals.....not many of us are buying homes in Myers Park.....Sadic sure as hell ain't....so why would he do that unless he planned on refinancing in 5 years or selling?

you want to sit on the $20K you invest and pay rent? DUMB. If the property value doesn't increase ....you are fucked....why gamble over a couple hundred bucks?



I can't spell worth a shit...but I know about construction and realestate.

 

See, I see those places as a little more risky than Uptown. When you say the value is in the dirt, you're really saying location. My feeling is that for those places to appreciate, Uptown will have to appreciate first/simultaneously, and Uptown real estate is physically more limited than anything outside of it. At least that's how I'm thinking today.

 

Sure...but look at what they are going for NOW. YOu can still get good affordable stuff there. Uptown, Dilworth, etc...should continue to appreciate...but they have already moved up quite a bit.

I did a purchase for a woman last month in Dilworth. The place was LITTLE. She paid $475,000...had to offer $9000 OVER list in order to get it!!!

 

My first choice was Dilworth...couldn't find shit within my range...

2nd choice was Elizabeth but I couldn't find anything decent that I liked...

3rd choice was NoDa....found what I wanted in a growing area...


Wilmore and Wesley Heights need tons of work....

 

I don't doubt it. I also don't think we're really disagreeing. I just think R/E is a great LT investment no matter what, and I/O products are for ST flexibility, not for LT purchases.

 

I had peole buying $350-400K homes in myerspark/dilworth that were only 900 sf and then contracting $400K to remodel the house and make it 4000sf. So they end up around $700-800 to get what they want.

funny thing is...Charlotte's market is so under valued.....I moved from a 3 year old all brick 3000sf house in Weddington on more than an acre....into a 2200 sf house in South Florida....they want $700,000 for the South Florida house.....CRAZY!

 

Wilmore is still a few years away from not sucking ass, but Wesley Heights is already solid. A buddy of mine over the last five years has watched every drug dealer on his street moved out, and his 65,000 dollar investment has already grown to nearly 300,000 with little work on his house. All around him, it's nothing but 200,000 condos going up. If you can get in that hood, I'd highly reccomend it.

 

Or is it too late and better to buy in Wilmore? Where are these places, btw?