Is refinancing your house for 1 interest only loan a good idea to save money?

Emmett
Where are you getting a 1% loan???If the interest rate is fixed, then there shouldn't be much to worry about. Connie above said that the lender will change the interest rate, but you didn't say it was a variable rate loan.However, if someone is telling you that you can get a home refi for 1% you should be extremely skeptical, since the Fed's prime rate is quite a bit HIGHER than that. That means that the lender will literally be losing money by giving a 1% loan, when they have to get that money from somewhere, paying more interest on it than you are paying them. ...Unless it is 1% over prime...Then that would make more sense. But just a 1% loan sounds very shady.

Albertine
Something dosent sound right about those terms.

Emery
It sounds too good to be true. I expect this 1% is a "teaser rate" which will expire and turn into something aweful. This is not a good idea.Please keep reading more about finances to avoid being lured by these scams.

Kimberlie
Oh H*** no. When you see a deal like that, run in the other direction. Those types of loans will change the interest rate in a few months and your payment will double. Think of the word "foreclosure", because if you refinance your home with this deal, that's what will happen when you can no longer afford the payments when the rate jumps.

Chas
I agree with the person above, and also wonder what you need to refinance your home for? If its to pay down current debt, consolidating your debt to get a lower interest rates is a good idea (though maybe not via refinancing) you should go to a debt councilor and get advice on your specific situation.If its for something like a vacation or another car - I would take out a line of credit - if and only if I had a feasible action plan to repay it