WOW! Great feedback and info. I’m not sure if this makes sense but one reason we were considering the interest only loan is my husband, who is self-employed, is going to take the next 2 years and finish his PhD. The interest only loan is about $500.00 less per month than a trad 30 year fixed. This gives us the option that if we have extra money in a given month to put towards the equity, 401k, savings, etc. In 2 1/2 years my husband will have about $50,000 in school loans due. At that time we were thinking if interest rates were still good to consolidate the school loans and refi. Yes? No?

Alex_angel – The loan you mention is the loan we were considering. The loan interest is 6.250.