Zillow Advice: Mortgage Types - Is a tax only mortgage a good idea if I am not planning on living in the property for a long time? http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ Zillow Advice | Zillow Real Estate Interest-only loans have ... http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ <p>Interest-only loans have become much less attractive due to the higher rates/pricing that comes with this feature-&nbsp;and actually, many&nbsp;lenders do not offer interest-only options anymore.&nbsp; Rates are still very low, so&nbsp;an interest-only loan is not something I would advise.&nbsp; If this is an eventual investment property, odds are you plan to rent it for a while which means you'd be best suited to take a fixed rate.&nbsp; A fixed rate will give you security in knowing that your rate is protected for the life of the loan, regardless of how long you plan to rent it.&nbsp; I'd love to chat with you&nbsp; further about this- I'm here in Raleigh right off of Falls of Neuse Rd.&nbsp;<strong><u><em>[Spam removed by Zillow moderator, see our&nbsp;<a href="http://www.zillow.com/howto/GoodNeighborPolicy.htm">Good Neighbor Policy</a>]</em></u></strong><br/>-Justin</p> Tue, 25 Mar 2014 21:54:00 GMT http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ 2014-03-25T21:54:00Z Honestly, I don't think an ... http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ Honestly, I don't think an Interest Only loan is ever appealing unless it is a very large purchase and you are counting on appreciation to pay for the costs associated with selling. &nbsp;I bought my house with the intention on being here for 5 years and it's been over 17! &nbsp;If you're positive you'll be gone in 5-6 years, then maybe look at a 7/1 ARM, but I'd love to discuss it with you - <strong><u><em>[spam removed by Zillow moderator, see our <a href="http://www.zillow.com/howto/GoodNeighborPolicy.htm">Good Neighbor Policy</a>]</em></u></strong> Mon, 24 Mar 2014 20:18:00 GMT http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ 2014-03-24T20:18:00Z I meant interest only, sorry ... http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ I meant interest only, sorry guys. Thu, 20 Mar 2014 01:29:00 GMT http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ 2014-03-20T01:29:00Z Are you asking about an Interest ... http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ Are you asking about an Interest Only loan for a lower monthly payment? You state you will buy a Town Home " but will be renting it out in the near future". If you purchase as your Primary Residence you need to plan on living there for a year. Thu, 20 Mar 2014 01:16:00 GMT http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ 2014-03-20T01:16:00Z Not sure what you mean by ... http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ Not sure what you mean by "tax only", but don't be afraid of adjustable rate mortgages. If you are only going to be in the home for a short time period, look into a hybrid ARM. There is no sense paying a higher rate than necessary if you are going to sell the property in a few years.&nbsp;<br/><br/>There are many other things to consider, but generally speaking an ARM is very safe if you plan ahead. Thu, 20 Mar 2014 00:51:00 GMT http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ 2014-03-20T00:51:00Z No. If you are keeping it ... http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ No. If you are keeping it long term get a fixed rate mortgage without a balloon and without any need to refi when rates go higher. Tue, 18 Mar 2014 21:12:00 GMT http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ 2014-03-18T21:12:00Z what is a " tax only " ... http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ what is a " tax only " mortgage? Tue, 18 Mar 2014 19:44:00 GMT http://www.zillow.com/advice-thread/Is-a-tax-only-mortgage-a-good-idea-if-I-am-not-planning-on-living-in-the-property-for-a-long-time/532788/ 2014-03-18T19:44:00Z