You probably remember the interest only loans from years ago. Those loans were most popular in 2005, 2006, and 2007. Most of them had a 10 year interest only period after which the loan started to amortize (include principal).
Here we are 10 years later and people are starting to get the announcements that the payment is changing. The couple I helped this month was going to see an increase of $1000 per month starting May: NOT AFFORDABLE to them, which meant they might lose their home.
2 years ago it might not have been possible to refinance, but we now see the values of properties here reaching their 2005-6-7 levels.
Rates back then were 5.5-6.5% for a 30 year fixed. Now that rates are around 3.5-5% 30 year fixed, people with these loans can finally refinance.
I am happy to say that I helped clients who bought their home in Gardena for $555,000 in 2006 with ZERO DOWN get a new loan saving them $500 per month, AND now paying down the loan at $800 per month in principal instead of treading water with an interest only loan. YEAH!!
Huge savings and peace of mind of a low fixed-rate payment.