If you obtain an interest-only mortgage, can you refinance to a traditional mortgage later?

Question

Right now I am staying home with the kids but I plan on going back to work when they begin school in four years. Is it possible to obtain an interest-only mortgage for, say, five years and then refinance to a traditional 30 year mortgage later on?

Answer 1

As long as you qualify for a mortgage, ANY mortgage can be refinanced. That said, if you can't afford the payments on a traditional mortgage, you WILL be in trouble when the rate on the interest only mortgage adjusts UP at the worst possible time.

Answer 2

If you get a mortgage loan and decide to refinance in several years, that will be an option. Keep your credit clean & you'll be good.