Cass_17_7 asked: My boyfriend of 5 years and I recently bought a house for 70,000. We put 20% down, so now we will have to make payments on just $56,000 on a 7% ARM for 15 years. I was wondering if it’s not too insane to get a loan in my name for 28,000 and have my boyfriend get a loan for 28,000 and pay off the mortgage loan. The reason I thought of this is because less would be going out for interest since it’s a smaller amount right and we would be able to pay it off way sooner than 15 years. I just don’t like the thought of most of my money going towards interest. If anyone thinks I’m nuts say “I” and I’m willing to listen to sound advice. Thanks!
Then my boyfriend would pay on his loan a month and I would also pay on my loan. Neither one of us has to worry about someone dropping the ball on payments because we’re conscientious about bills and paying them on time.
The 7% ARM has a cap of 9%. We went with this type of loan because we didn’t have to pay any closing costs this way, and I’m not for sure if we’re going to stay in this house long enough to make up the difference of the closing costs had we gone with a 6.5% fixed rate.
Dawn
