Principal + Interest or Interest only Loans
Hey everyone, I am in a unique position and looking for some guidance. The short question is, should I take a loan if the borrower is willing to do an interest only loan for the same interest rate?
This is a family member who is willing to give me a loan of 5% interest only with as little as 10% down. If I have this option, should I amortize this loan (I think I am using this correctly) or should I take the interest only loan? Obviously the interest only loan will give me more cash flow, but I did not know if there are benefits to using the amortized loan. Thanks!