Who has the best 10/1 or 30-year fixed I/O programs? (pls don’t laugh)

[AK]

After everything that’s happened in this decade I find it hard to believe I’m considering an “exotic” mortgage, but here goes …

I’m in a situation that I don’t think is at all unusual for this time and place. I have a good, stable job where I have a good reputation and excellent reviews. I have a very good credit score … about as good as you can get without being a homeowner. I do face the distinct possibility of temporary pay cuts or furloughs. At the same time I don’t see interest rates going down any time soon, and I figure lower-end real estate prices stable or slightly higher in the next few years. Oh yeah, and I can afford to put 10% down and still have adequate cash reserves.

For all these reasons I still think this is the time to buy, but I’m hoping to do it with a 10/1 or 30-year fixed interest-only mortgage … not to stretch affordability, but to get maximum flexibility of cash flow.

So does anyone know of a lender with a good 10/1 or 30-year fixed I/O program at 90% LTV? Thanks in advance for your suggestions!

——————————–

Just in case someone wants to convince me otherwise, here are some of the possible scenarios I’ve considered. Please feel free to suggest your own:

Dream situation: I put my free cash into uber-conservative investments with a higher after-tax return than the interest rate on my mortgage. Some time within the next decade I refinance, trade up, or pay down.

Nightmare situation #1: High inflation, pay off mortgage with increasingly worthless money.

Nightmare situation #2: Deflation, no rate reset worries.

Nightmare situation #3: Protracted recession, monthly payment still lower than rent, plus possibility of a year of rent-free living after liquid assets run out.

Nightmare situation #4: Depression, we’re all screwed anyway.

Nightmare situation #5: Interest-only period ends and I’ve spent my free cash flow on stupid s***. Oh well, I deserve what I get!

[ybitz]

Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…

[ybitz]

Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…

[ybitz]

Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…

[ybitz]

Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…

[ybitz]

Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…

[Coronita]

[quote=ybitz]Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…[/quote]

…Provided it’s a fixed mortgage. If you have a 10/1, that doesn’t seem fixed, and I would surmise your rate would rise with inflation.

… I think getting an adjustable loan poses a risk particular since more than likely rates are going to go up in the future. I don’t think most people are savy enough investors to be able to consistently obtain investment returns that would beat that rising ARM rate….

…I seriously doubt we’ll see deflation in the long term.

…In a depression everyone is screwed, but even then being screwed is relative. So hopefully you would have enough cash to at least buy food and shelter.

…Regarding a 30year IO…You probably need to assess how good you really are at saving versus spending cash on hand. I think most people probably spend more when they *feel* they have more cash on hand. Also, it’s not just that you would be screwed if you didn’t pay down your principle by the time the loan was down…I’m sure someway the taxpayer would be on the hook for that.

They still offer 10/1’s? Wow.

[Coronita]

[quote=ybitz]Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…[/quote]

…Provided it’s a fixed mortgage. If you have a 10/1, that doesn’t seem fixed, and I would surmise your rate would rise with inflation.

… I think getting an adjustable loan poses a risk particular since more than likely rates are going to go up in the future. I don’t think most people are savy enough investors to be able to consistently obtain investment returns that would beat that rising ARM rate….

…I seriously doubt we’ll see deflation in the long term.

…In a depression everyone is screwed, but even then being screwed is relative. So hopefully you would have enough cash to at least buy food and shelter.

…Regarding a 30year IO…You probably need to assess how good you really are at saving versus spending cash on hand. I think most people probably spend more when they *feel* they have more cash on hand. Also, it’s not just that you would be screwed if you didn’t pay down your principle by the time the loan was down…I’m sure someway the taxpayer would be on the hook for that.

They still offer 10/1’s? Wow.

[Coronita]

[quote=ybitz]Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…[/quote]

…Provided it’s a fixed mortgage. If you have a 10/1, that doesn’t seem fixed, and I would surmise your rate would rise with inflation.

… I think getting an adjustable loan poses a risk particular since more than likely rates are going to go up in the future. I don’t think most people are savy enough investors to be able to consistently obtain investment returns that would beat that rising ARM rate….

…I seriously doubt we’ll see deflation in the long term.

…In a depression everyone is screwed, but even then being screwed is relative. So hopefully you would have enough cash to at least buy food and shelter.

…Regarding a 30year IO…You probably need to assess how good you really are at saving versus spending cash on hand. I think most people probably spend more when they *feel* they have more cash on hand. Also, it’s not just that you would be screwed if you didn’t pay down your principle by the time the loan was down…I’m sure someway the taxpayer would be on the hook for that.

They still offer 10/1’s? Wow.

[Coronita]

[quote=ybitz]Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…[/quote]

…Provided it’s a fixed mortgage. If you have a 10/1, that doesn’t seem fixed, and I would surmise your rate would rise with inflation.

… I think getting an adjustable loan poses a risk particular since more than likely rates are going to go up in the future. I don’t think most people are savy enough investors to be able to consistently obtain investment returns that would beat that rising ARM rate….

…I seriously doubt we’ll see deflation in the long term.

…In a depression everyone is screwed, but even then being screwed is relative. So hopefully you would have enough cash to at least buy food and shelter.

…Regarding a 30year IO…You probably need to assess how good you really are at saving versus spending cash on hand. I think most people probably spend more when they *feel* they have more cash on hand. Also, it’s not just that you would be screwed if you didn’t pay down your principle by the time the loan was down…I’m sure someway the taxpayer would be on the hook for that.

They still offer 10/1’s? Wow.

[Coronita]

[quote=ybitz]Re: Nightmare situation #1. Isn’t high inflation great for those that have debt (like a mortgage)?

I don’t much about lender comparisons…[/quote]

…Provided it’s a fixed mortgage. If you have a 10/1, that doesn’t seem fixed, and I would surmise your rate would rise with inflation.

… I think getting an adjustable loan poses a risk particular since more than likely rates are going to go up in the future. I don’t think most people are savy enough investors to be able to consistently obtain investment returns that would beat that rising ARM rate….

…I seriously doubt we’ll see deflation in the long term.

…In a depression everyone is screwed, but even then being screwed is relative. So hopefully you would have enough cash to at least buy food and shelter.

…Regarding a 30year IO…You probably need to assess how good you really are at saving versus spending cash on hand. I think most people probably spend more when they *feel* they have more cash on hand. Also, it’s not just that you would be screwed if you didn’t pay down your principle by the time the loan was down…I’m sure someway the taxpayer would be on the hook for that.

They still offer 10/1’s? Wow.

[SD Realtor]

Call or email HLS. [email protected].

I am not agreeing or disagreeing with your decision.

[SD Realtor]

Call or email HLS. [email protected].

I am not agreeing or disagreeing with your decision.

[SD Realtor]

Call or email HLS. [email protected].

I am not agreeing or disagreeing with your decision.

[SD Realtor]

Call or email HLS. [email protected].

I am not agreeing or disagreeing with your decision.

[Author]

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