I have a 10/20 fixed – the first 10 years are interest only – the last 20 are fully amortized – the interest rate is fixed for the entire 30 year period
This loan made sense to me – the first 10 years of a mortgage barely touch the principal anyway so why not pay interest only? – the difference in payments between a 20 and 30 year amortization schedule is minimal (a few hundred bucks per month) – the interest rate is fixed so there won’t be any surprises
don’t know if this loan product is still available today
