Stressful living! October 31, 2005
In reading today’s Seattle Times article on people who have used interest-only loans to get into homes they could not otherwise afford, I get the feeling that some people are much better at living under constant stress than me! 
It can be a wonderful experience to own a home, but it still doesn’t make sense to me why people put themselves in these situations. I’ve heard some darn good arguments from investors regarding why it makes sense for them to use interest-only loans, but for the rest of us, it feels too much like gambling…
Dean Baker sums up the I/O like this: “In a falling interest-rate environment, you may be saving enough to make it worthwhile. But … in a higher-rate environment, there may not be a loan to bail you out.”
To quote the same phrase Dustin used a few days ago with regard to hiring a lawyer, “A good night sleep should not be underestimated.”
Check out these related posts:
- One good faith estimate isn’t good enough…
- Fannie Mae Sees Mortgage Risks
- Why Mortgage Rate Changes Do Not Always Follow Fed Rate Increases
Article Tags>> Mortgage and Lending | News | stress
- Posted in : General Real Estate, Mortgage and Lending
- Author : Anna
(I just...
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