15 year jumbo interest only

[hammer]

I work in the commercial real estate world and a co-worker of mine just entered into escrow last week.

I saw his truth in lending document, and he locked an 80% loan for 1.1 million. 15 year interest only at 5.625%, with 3/4pt. I believe Union Bank of California is offering this loan. I apologize not having a link.

The UBOC Interest only 80% jumbo rates were

5 yr – 4.875
7ry – 5.25
10 yr 5.5
15 yr 5.625

It seems to me that the 15 year IO is a great loan.
I am not a buyer right now, but would love to hear some thoughts

[patb]

sounds like we have a hypester in the pool

[patb]

sounds like we have a hypester in the pool

[patb]

sounds like we have a hypester in the pool

[patb]

sounds like we have a hypester in the pool

[patb]

sounds like we have a hypester in the pool

[hammer]

That is an unfair comment. Not hyping anything, just real live market info.

I felt the 15 year jumbo IO is an interesting product if one would rather save cash than pay down principle heading into some inflationary cycle in the future. The rate seemed pretty low…just looking for more knowledgeable opinion.

[hammer]

That is an unfair comment. Not hyping anything, just real live market info.

I felt the 15 year jumbo IO is an interesting product if one would rather save cash than pay down principle heading into some inflationary cycle in the future. The rate seemed pretty low…just looking for more knowledgeable opinion.

[hammer]

That is an unfair comment. Not hyping anything, just real live market info.

I felt the 15 year jumbo IO is an interesting product if one would rather save cash than pay down principle heading into some inflationary cycle in the future. The rate seemed pretty low…just looking for more knowledgeable opinion.

[hammer]

That is an unfair comment. Not hyping anything, just real live market info.

I felt the 15 year jumbo IO is an interesting product if one would rather save cash than pay down principle heading into some inflationary cycle in the future. The rate seemed pretty low…just looking for more knowledgeable opinion.

[hammer]

That is an unfair comment. Not hyping anything, just real live market info.

I felt the 15 year jumbo IO is an interesting product if one would rather save cash than pay down principle heading into some inflationary cycle in the future. The rate seemed pretty low…just looking for more knowledgeable opinion.

[(former)FormerSanDiegan]

You have not given enough info to determine whether this is a good loan or not.

I’ve seen 3-, 5-, 7-, and 10-year IOs that convert to fully amortized loans for the remaining 15 years.

Does this 15-year IO loan convert to fully amortizing for 15 remaining years after the initial term or is the term longer ?

Is it a balloon ?

What is the margin, index, and cap ?

On the surface it sounds like a 15-year rent with an option to purchase (and sell) at any time before that.

[(former)FormerSanDiegan]

You have not given enough info to determine whether this is a good loan or not.

I’ve seen 3-, 5-, 7-, and 10-year IOs that convert to fully amortized loans for the remaining 15 years.

Does this 15-year IO loan convert to fully amortizing for 15 remaining years after the initial term or is the term longer ?

Is it a balloon ?

What is the margin, index, and cap ?

On the surface it sounds like a 15-year rent with an option to purchase (and sell) at any time before that.

[(former)FormerSanDiegan]

You have not given enough info to determine whether this is a good loan or not.

I’ve seen 3-, 5-, 7-, and 10-year IOs that convert to fully amortized loans for the remaining 15 years.

Does this 15-year IO loan convert to fully amortizing for 15 remaining years after the initial term or is the term longer ?

Is it a balloon ?

What is the margin, index, and cap ?

On the surface it sounds like a 15-year rent with an option to purchase (and sell) at any time before that.

[(former)FormerSanDiegan]

You have not given enough info to determine whether this is a good loan or not.

I’ve seen 3-, 5-, 7-, and 10-year IOs that convert to fully amortized loans for the remaining 15 years.

Does this 15-year IO loan convert to fully amortizing for 15 remaining years after the initial term or is the term longer ?

Is it a balloon ?

What is the margin, index, and cap ?

On the surface it sounds like a 15-year rent with an option to purchase (and sell) at any time before that.

[Author]

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