Anyone offered interest only mod?

[fla borrower]

Just curious to know if anyone else was offered an interest only for 5 years with an escaltion in interest starting year six and eventually P&I down the road?

[BadBobMo]

interest only for 5 years

Keep your eye on any in-house mod, I've seen them many times. "Don't do it!
It's All Greed

[caldwellb02]

It would be the rare situation where I would think an interest-only mod is in anyone's interest but the banks.

[Evan Bedard]

Just curious to know if anyone else was offered an interest only for 5 years with an escaltion in interest starting year six and eventually P&I down the road?

I used to see these modifications all the time. It is an in-house step rate modification that starts out interest only to keep the payment that much lower for the first five years. What does the interest rate start at, and end at?

[exhausted girlfriend]

I was offered interest for the 1st 10 years, but the entire plan is a good one. We will pay extra on the principle balance anyway. our permanent payments are $500 less than our trial mod payments. Our interest rate start at 2%

[Evan Bedard]

I was offered interest for the 1st 10 years, but the entire plan is a good one. We will pay extra on the principle balance anyway. our permanent payments are $500 less than our trial mod payments. Our interest rate start at 2%

Wow that sounds like an excellent modification, congratulations!

[fla borrower]

Hi Evan

It starts at 2.62%-year 1-5
3.65%-year 6
4.625%-year 7
5.000%-year 8
5.000%-year 11-27 P&I

[davephx]

I'd be happy with interest only for 10 years on a mod. My goal in life isn't equity but a home.

Actually my current 1st is interest only for 10 years at about 6.1%. But 2%/40 is a much lower payment which is my biggest concern. 2nd is at 9.1%

[litehouse01]

My current 1st is interest only 30 yr fixed @ 7.25...I would take an interest only mod I am going to be 57 and my husband is 58 we wouln't live to see it paid off anyway unless we hit the lottery! I just want a roof over my head thats kinda sorta mine a place where my grandchildren come and have fun....My 2nd is a 75k 15 yr 9.25 with a balloon payment at the end of 45k sucks doesn't it?

[jhn_plsn]

Originally Posted by fla borrower

Hi Evan

It starts at 2.62%-year 1-5
3.65%-year 6
4.625%-year 7
5.000%-year 8
5.000%-year 11-27 P&I

I think thats a fair deal as you know the change dates well in advance for planning. Get it in writing.
Last year I accepted an offer of interest only for five years at 5-7/8% but it ramped up like a normal variable with a cap of 10.9%. The adjustments after the five years made me verveous so I tried again just recently and was given a 3% for five years and adjustable after that with a cap of 4.95%. Much better.