Quote:
Originally Posted by 101lifts2
But it didn't...it took a DEEP dive. EVerything I "would" have put into the house would have been for nothing.
And if the market took an upswing, I would have sold it for a profit. 
My co-worker bought a house for 630k and put 150k down. Thing is worth 380K, which is less than what he owes. Now...he is stuck with it or stands to loose 150k. |
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.
