sactomike wrote:
My wife and I refinanced our house back in Feb (2005)to an interest
only loan. At the time we only planned to stay in the house for 1 - 3
years. Now we think we may be there longer and are questioning the
wisdom of going with an interest only loan. So, my questions a 1.
would it damage our credit to refinance again so soon? 2. would the
extremely short time we've had the mortgage (5 months) make lenders
hesitant to do business with us?

Thanks in advance!


"Credit rating" is a ploy used against those seeking loans and whatnot.
If you know you are good for it, don't accept any junk loans because
they claim you are not.

1. Yes. Just to inquire about another loan 'damages' your credit. They
will tell you anything if they think they can get more money out of you.
Each inquiry from a lending agency will appear on your record and the
lenders will claim this is a negative. If you find a reputable lender
they will ignore this.

2. Yes they will claim so if they think they can get more money out of
you. If they start talking about how bad your credit is, its time to
find a new lender.

I can't imagine a situation where an interest only loan is good.



--
Respectfully,


CL Gilbert