Thanks for all the interesting feedback, constructive and vindictive. As we all know, no one loan is good for everybody. Yes, our payments are 2450, and with insurance, that is $3000 per month. We are right at the 90k limit, which still gives us heaps to live on, as we have zero debt.
Rentals in my neighborhood, La Costa are at 2100-2400 for the same model, so minus the tax, my loan is the same I would pay for rent.
The reason I liked the loan was that it gives me the security of the locked in rate, but I could easily refi at anytime once the market gets back to a more normal place. And to the comment, you can’t afford that loan. It is not the price, but the terms. 10 years is a long time away. This is not a three year ARM. Everyone is all negative to the interest only loans now, but they are still a great tool if used wisely. P.S. And where else can you get the whole loan on one mortgage without an outrageous 2nd in the 8%+ range
