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Updated about 8 years ago on . Most recent reply

Paul Evert's profile image
Paul Evert's profile image
Paul Evert
  • Investor
  • from Medina, Ohio
  • Member since May 28, 2017
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Paul Evert's profile image
Paul Evert's profile image
Paul Evert
  • Investor
  • from Medina, Ohio
  • Member since May 28, 2017
Connect
Paul Evert
  • Investor
  • Medina, OH
0
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8
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Creative Real Estate Financing

Interest Only Loan vs. P&I

Paul Evert
  • Investor
  • Medina, OH
Posted

I'm about to close on our 1st property using a HELOC. We have no other debt and plan on financing 100% of the purchase. Should I use interest only or P&I? Is this a sound strategy?

Details

Purchase price:  $105K

Interest rate:  3%

Closing costs:  $0

Length of loan: 7% for 10 yrs, then converts to 20 yrs fixed

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