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So what is the value of an interest only note?  Are you buying a home in a market that is growing and you are planning on selling short term, then this is the loan for you.

http://www.buckeyeads.com/credit4you/home/mortgage/calculator.php

If you are buying a home for your family to live in then you need to really understand interest only loans and not even waste you time on them.   Let's start with your income, let us say for instance that you are an average american and you and your wife are each making $55,000 a year,  that is a $110,000 combined income with a family of 2 to 4 children. 

Based on that assumption you will probably be taking home in the area of 70-75 k that is $6,250. a month.    My first suggestion and it is only a suggestion, is not to take out a loan for more than 20 years as I always tell my kids if cannot afford to pay it off in 20 years do not buy.

You can go to this page on my site to do a payment schedule once you have derived a value on a home that you want to buy.  For information purposes we will say that you want to buy a home valued at $300,000 dollars.

http://www.buckeyeads.com/credit4you/debt/

Your payment on a 20 year loan on a $300,000 dollar home would be $2,500. for a fixed rate loan, this is the type of loan that you should go after.   This is financing the entire balance but in most cases a bank would require 20-25% down unless you are a first time buyer.

Only you know your families expenses so you can sit down with your spouse and review your expenses once you are using real figures and not figures that banks want to sell you a home for.  Interest only notes are only putting money in there pockets and not yours unless of course you are in a booming home market and your home is inflating quickly,  I am not!

http://www.buckeyeads.com/credit4you/mortgage-refinance/

Personally my idea of a family home is one that we can easily afford and still have money to do the things that families do, ie. sports, eat out, etc..  Another important factor to figure in is you credit card payments, are you making minimum payments on these card?  If you are once again the banks are the only one making the money,  as I told my kids many times if you cannot afford to pay cash for an item don't buy it. 

There are exeption for some people, an example would be if you can discipline your self to pay the entire balance off each month then I would say it would be fine or say for instance they give you 6 month interest free then I would say if you can afford to pay the entire balance of in that time period than great go for it.  If you cannot then don't buy!

As a society we love credit but unfortunately credit does not like you as we have record forclosures and bankruptcy going on in our society today and unless we as a society get a handle on our spending you will never have anything to give your kids on down the road.

The above information is only meant as advice, as I have been in business for 26 years and my kids are all older now,  My wife and I have made it to this stage and believe me raising 4 kids is never easy so I have to say why make it any harder by strapping yourself with debt.  To be quite honest to much debt will cause a whole host of additional problems that you do not need.

Why did I write this article? To be quite honest companies would no advertise those offers if millions of people were not taking advantage of them, that is the reason for my article!

Good Luck!