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Steve Carlton Steve Carlton is online now
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Join Date: Aug 2003
Location: SF east bay
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So, based on that:
$365K at 6.125% full ammo = $2,219/mo
$365K at 6.625% int only = $2,015/mo

Extra interest/year on I/O loan = $1,825 = $152/mo. It's costing $152/mo (tax deductible) to save $204/mo net. I'd recommend paying the extra $204/mo to have the principal balance go down $356/mo, based on this rate difference.
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Old 11-29-2007, 08:35 AM
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