Interest only home loans

  1. Has anyone seen the interest only loan options going on now? I own a home and am looking at refinancing for under 4% interest only with a five year arm. I figure I pay interest only while in school (16 months) and pay on the principal till I sell or refinance closer to the end of the 5 year arm. I live in an area that my house goes up about 8-10 grand a year in value. I have an equity line that i used to do improvements, pay for pre-reqs/school and rolled my balloon second mortgage I had from when i first got the house to get my down payment to 20% to avoid PMI costs.