Interest only loan on primary residence

[N/A N/A]

Does anybody have an opinion on using an interest only loan on their primary residence? The logic behind this is that by using an interest only loan you will be able to use the savings to invest elsewhere and be able to write off the interest to save even more....or so I have read. In my situation, we will probably not stay in the next house we are going to buy for more than 3 years. So I was thinking we could just refinance at the time we did have to start paying principle or sale the home. I would love opinions on using this strategy versus using conentional 30 yr fixed financing.

-Madison

[Richard Warren]

The idea here is to invest the savings into another investment vehicle. If you can get a better return (net of taxes) then an IO loan COULD make sense. If you are just going to spend the savings then it doesn’t make sense.

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