Re: BRAG: Just got approved for a home mortgage
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maybe he doesn't plan on living with his buddies in this bach pad for more than 10 years.
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Pretty much it, plus this is what will give me the lowest payments for 10 yrs. By that time I can either re-fi or sell.
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That's not really a bad loan. As long as the area you are looking to buy in is an area that's appreciating or at least not depreciating you should be fine with interest only.
If the market starts to decline since you're not paying off any of your principal then that money that you put down (which has now become your equity) will start to disappear.
Just keep an eye out on the market and don't be afraid to spend $300 every year getting the place appraised so you'll have a true idea of where you stand in your particular area.
Houses are financially dangerous. Most people have been tricked into thinking they're assets, but, the reality is that they are, in fact, HUGE liabilities.
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