So the NY times calculator is a good one http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=patrick.net ,
but there is no option for an interest only mortgage in there.
Does anyone know of similar calculators that take interest only mortgages into effect?
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FollowBefriend9 threads334 comments Manchester, NH
Sounds like you're already planning on defaulting.
FollowBefriend (23)56 threads4,075 comments Scottsdale, AZrobertoaribas's website
first off, NO loan is interest only forever. At some point, you will have to begin paying it off.
second off, it won't make any difference. The new york times is counting the gain you make by slowly paying off the home, so in reality the only difference of an interest only loan is you see that gain immediately in the form of a lower monthly mortgage, rather than in terms of a reduced loan principle.
Seems like you are looking for a way to justify a bad decision. use the new york times as is...
FollowBefriend35 threads5,700 comments Bellingham, WA
The person who recently posted about taking out an IO loan in 1980 instead of a 30 year mortgage made an interesting point, given the immense appreciation the stock market has seen over the past 30 years -- 800% plus an average 2.8% in dividend.
Just investing $750/mo 1980 through 1989 ($90,000), and letting that ride for 20 years would give you a holding of $1M today ($600,000 in appreciation and $300,000 in reinvested dividends).
I went into that question thinking real estate trumps all, but left humbled at the power of the S&P index since 1980.