ericwinters Posted October 13, 2023 Share Posted October 13, 2023 Anyone have good or bad experience on this? My realtor says this is the way to go, but what is rates go up like the 80s? Link to comment Share on other sites More sharing options...
+ The Big Guy Posted October 13, 2023 Share Posted October 13, 2023 If I understand this correctly your interest rate is reduced by 3% in year 1, 2% in year 2, 1% in year three and then reverts to the regular rate in year 4. This makes sense if you don’t get pushed into buying a higher priced home that you ultimately won’t afford when the rates/payments go higher in year 4. The question to ask yourself is can i make the payments at the year 4 interest rates today. If not you are betting on your income going up by year 4 to cover the interest. ericwinters 1 Link to comment Share on other sites More sharing options...
+ Vegas_Millennial Posted November 22, 2023 Share Posted November 22, 2023 On 10/13/2023 at 2:25 AM, ericwinters said: Anyone have good or bad experience on this? My realtor says this is the way to go, but what is rates go up like the 80s? The last time I saw these loans gain popularity was in 2005. And we all know what happened to the housing market and economy 3-4 years later when everyone's rate jumped higher all at once. Link to comment Share on other sites More sharing options...
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