Tuesday, July 19, 2005
Why?
Why would anyone get an interest only mortgage?
Ok, I probably understand why someone would do this. They really want a house, housing is getting more and more expensive and they probably assume that even just paying the interest, they can probably eke out some equity in a short time in today's white hot market. But isn't this pretty much like buying stock on margin? We all know how well that works.
Maybe I'm just to risk adverse to buy into this buying a house on margin and hoping for the best. But then, I have a 30 fixed mortgage at about 6%.
'Pick-a-payment' mortgage risks are high
http://www.usatoday.com/money/perfi/columnist/block/2005-07-18-pick-a-payment_x.htm
Ok, I probably understand why someone would do this. They really want a house, housing is getting more and more expensive and they probably assume that even just paying the interest, they can probably eke out some equity in a short time in today's white hot market. But isn't this pretty much like buying stock on margin? We all know how well that works.
Maybe I'm just to risk adverse to buy into this buying a house on margin and hoping for the best. But then, I have a 30 fixed mortgage at about 6%.
'Pick-a-payment' mortgage risks are high
http://www.usatoday.com/money/perfi/columnist/block/2005-07-18-pick-a-payment_x.htm
