| Interest only loans can be very tempting to borrowers | | | | your loan will be ending soon or if you plan on staying |
| who are unable to afford a home with traditional | | | | in your house for awhile longer, refinancing will also be |
| means. They are also popular among those who | | | | of benefit.Why Refinancing Will Help You |
| intend to invest their savings or those who plan to | | | | SaveCurrently, interest rates on interest only loans in |
| make more money in the future. Unfortunately, interest | | | | Indiana average 5.72 percent. While this is a fair rate, |
| only loans aren't right for everyone. If you, like many | | | | it's not much lower than the rate you would pay on a |
| other people in Indiana, took out one of these loans | | | | regular adjustable rate mortgage. In fact, it may even |
| and find that they aren't all that they are said to be, | | | | be higher depending on the type of ARM you get. |
| you may want to consider refinancing.Who Should | | | | Current rates on a 5/1 ARM in Illinois average 5.56 |
| Refinance Their Interest Only LoanMany people who | | | | percent, while a 3/1 ARM averages a rate of 5.42 |
| take out an interest only mortgage loan expect to be | | | | percent. By refinancing to a regular ARM, your monthly |
| making more money within a few years time. | | | | payments will still be comparable to what you pay |
| Unfortunately, expectations don't always match up | | | | now. The bonus is that you will be paying on the |
| with reality. If your earnings aren't increasing, refinancing | | | | principal and building equity at the same time. This will |
| now may be a good idea. If the interest only period of | | | | allow you to save money over the long haul. |