Asked anonymously

We need to refinance a loan for $20,000 because the payments are only paying the interest rate of over 12%. Part of the loan is land. What is our best option?

Report Question Report

  Leave Answer

Log in or sign up with email
By submitting you agree to our Terms of Service

  Answers  |  1

March 01, 2016

There are many moving parts to this question. #1. You do not need to refinance, because it is an interest-only loan. You can simply start paying extra to go towards principal. Your interest-only payments are $200 a month now and once you start paying some towards the principal, the interest payments will go down very slightly as well.

#2. Refinancing a $20,000 loan that is partly secured by land may not be so easy. Your local bank may do it, but they may offer only a 2-3 year fixed rate, which will likely be interest-only as well.

You should always be entitled to pay something towards the principal balance on any loan.

$commenter.renderDisplayableName() | 07.25.17 @ 09:02

{comment}

  Our Professionals Are Available to Help!

  Can't find What You're Looking For?