Posted on: 29th Jan, 2009 09:44 am
if the loan is 136 thousand and you pay intrest only at 6 1/4 % what happens after the 15 yrs, do you pay down the principal only or do you have to pay principal and intrest?
I am not aware of any loan program that will allow interest only payments for 15 yrs. The interest only feature tends to expire after 10 years. At that time, you would need to make much larger payments over the remaining 20 years so that you can pay down the principal in full.