Quote:
Originally Posted by Homeslice
The point is, if this was a normal market, and homes were rising gradually, you're not going to score any kind of upgrade for nothing. Yes you might be able to sell your home for a profit, but the next home you buy is going to cost more than it did 5 years ago as well. Plus you were wasting all that money on interest payments (almost as much as rent, if not more). Plus closing costs. So um, I don't get how this interest-only stuff is so great. Maybe it lowers your payment a little, but in return it just means that you'll have more to pay off after you sell your home.
To me it's kind of like the chumps who take out a 72 month loan on their car, just so they can get a Lexus they otherwise couldn't afford.  |
I understand, but housing went way down and it's going to take 10 years for a house in the Inland Empire to go up to 2005 levels (if it ever does). For me anyway..I got real lucky to get outta this gem I had.
I would rather have an interest only payment that I can pay principle, but not have to be obligated to pay principle/interest in case of loss of work or a big expense as long as the interest rate is not higher than a 30yr fixed. As long as you make the principle payments, you are no different than the 30yr fixed loan.