[sr4402]

Interest only loans aught to be illegal. It tempts the young to believe they don't have to pay off loans and that they will be OK with just rising house prices for their retirement. This is a very big "if" and now a lot of folks wish they had never taken the interest only plunge.

A warning to the young. Never take a loan you can't pay off.

[Fan of Fiat]

Interest only loans aught to be illegal.

Really? Do you really think the gubmint should dictate which types of contracts I'm allowed to enter? Do you really think the gubmint knows what is best for me? If I make $100K a year, should it really be illegal for me to buy a $200K home with an interest only loan? Should it be illegal for everybody or just those that are not as financially savy as you?

[baltoga]

Interest only loans do have some advantages. They're great if you get extra income on a quarterly basis (such as bonuses) where you can then make a principal only payment. The catch is you must be disciplined to use the bonus for that purpose. Another benefit is that when you make a principal payment your next month interest only payment decreases.

Interest only payments are typically for 10 years and then convert to a traditional loan for the remaining 20 years.

[Larry Lucido]

Interest only loans aught to be illegal

Yeah, well, I think interest should be illegal. So should loans. So should houses I don't like. Crank up the gears of Big Brother.