NOYB wrote:
If I didn't get an interest-only loan at the time, I couldn't have bought my
house.

In other words, you could only afford it at all under
special conditions... conditions that amount to "play now,
pay later.'



I looked at my interest-only loan as a way to lock in 2004's price for 5
years down the road. When my rate adjusts, I simply "re-buy" my house for
$825k...even though it will be worth considerably more than that.


Maybe. If it's still standing.

Earlier you said that the lower interest rate on the first
years of the ARM would save you $55K... the only way you can
actually take this gain is if you could afford the higher
payment & invest the savings in something that gives a
higher return that the interest on the loan... relatively
easy to find in these days. You say you can't afford to do
that, therefor you're not really gaining anything other than
a big fancy overpriced house.

And think about this: banks can do math. Why would they hand
you a profit they could take for themselves?

Answer: risk!

DSK