I know that I'm getting ahead of myself here, but I'm seeking advice on obtaining an interest only mortgage for our next move during fellowship. Has anyone done this? Does anyone have any advice?
I read the following article which advises that interest only loans may work for individuals who anticipate higher income in coming years:
http://www.bankrate.com/brm/news/mtg/20020620b.asp
What do you think? Also, we currently have a little chunk of equity built up in our townhome. I would *like* to use this money to 1) buy a house and 2) pay montessori tuition for the two years during fellowship. I know that it is a risk to spend hard earned equity, but my whole life is one big financial risk right now.
Since unemployment will probably occur for a significant amount of time for me, the other options are very meager Roth IRA investments and very meager 529 investments which can be used to pay for private school (non-college) tuition. I'm trying to weigh the options of consumer debt vs. IRS tax penalties for early withdrawal. Earlier, we thought we would do a suntrust loan to finance this fellowship period, but 10-14%! Whew-- feels like sodomy to me!
Any other suggestions on how to carefully manage accrued debt? I know that debt is coming. I just want to be as smart as possible about it without deteriorating a good credit record.
Gambling, anyone?
We currently are on a 5 year arm mortgage because we knew that we would be leaving. I highly recommend this alternate financing for the gypsy medical lifestyle. Our financial goal was to make it through residency consumer debt free, but I don't think that we quite achieve it. Holding the line is becoming increasingly difficult.
Advice?
Kelly
I read the following article which advises that interest only loans may work for individuals who anticipate higher income in coming years:
http://www.bankrate.com/brm/news/mtg/20020620b.asp
What do you think? Also, we currently have a little chunk of equity built up in our townhome. I would *like* to use this money to 1) buy a house and 2) pay montessori tuition for the two years during fellowship. I know that it is a risk to spend hard earned equity, but my whole life is one big financial risk right now.
Since unemployment will probably occur for a significant amount of time for me, the other options are very meager Roth IRA investments and very meager 529 investments which can be used to pay for private school (non-college) tuition. I'm trying to weigh the options of consumer debt vs. IRS tax penalties for early withdrawal. Earlier, we thought we would do a suntrust loan to finance this fellowship period, but 10-14%! Whew-- feels like sodomy to me!
Any other suggestions on how to carefully manage accrued debt? I know that debt is coming. I just want to be as smart as possible about it without deteriorating a good credit record.
Gambling, anyone?
We currently are on a 5 year arm mortgage because we knew that we would be leaving. I highly recommend this alternate financing for the gypsy medical lifestyle. Our financial goal was to make it through residency consumer debt free, but I don't think that we quite achieve it. Holding the line is becoming increasingly difficult.
Advice?
Kelly
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