The payment for a P&I loan would not be much more than the payments on an
interest only loan for a 30 year mortgage. With the present low interest
rates, you should lock in the low interest rate with a 30 year fixed. Rates
are only going up, as they have doubled in the last year alone. In 5 years,
you are probably looking at probably a 8% minimum loan.
Bill

"NOYB" wrote in message
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"basskisser" wrote in message
oups.com...

P.Fritz wrote:
"NOYB" wrote in message
news
"DSK" wrote in message
news NOYB wrote:
I am paying interest-only on a 5-year fixed at 4.25%.

Pardon me for being blunt, but that's friggin' dumb. That's as
stupid as
punting on 3rd and short. Do you *want* the economy to take a big
chunk
out of your future?

Why is it dumb? I explained in detail why it works well for me.
Why pay
interest on an asset that's appreciating at 10-20% per year?

Some people just don't get that owing money is not necessarrily a bad
thing.


It IS a bad thing, when you are talked into an interest only ARM....

I presented the interest-only ARM idea to the lender. Until 2009, I can't
afford to pay interest *and principle* on such an expensive house.
However,
if I waited until I *could* afford to pay principal and interest on my
house
(5 years from now), then my house would be selling for even more
money...and
it would once again be out of my price range.

Like I said...
I'm effectively renting this house with an option at the end of 5 years to
buy it at today's price. The best part is that I get to write-off the
"lease" payment (ie--the interest).

It's a no-brainer.