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It gets worse than that, https://www.lendingtree.com/home/mortgage/interest-only-mortgages/ https://www.lendingtree.com/home/mortgage/interest-only-mort...
by danjoc 8y ago
It gets worse than that,
https://www.lendingtree.com/home/mortgage/interest-only-mortgages/ https://www.lendingtree.com/home/mortgage/interest-only-mort...
- twoheadedboy 8y agoWhat the hell did I just read..?
- mark212 8y agoIs this the first you’re hearing of an interest only mortgage? They have been very popular in Southern California for a couple of decades. The theory is that it allows the speculator / owner to get a much more expensive home and just pay the interest for 3 to 10 years. Then sell and reap the massive appreciation. Except of course when the market goes the other way and you’re underwater and then whoops! the payment flips to fully amortized (interest and principal) and you can’t afford it. Welcome to 2007! But don’t worry you’ll be unemployed in another year too!
- frankc 8y agoThere are also perfectly valid use cases for interest only mortgages. The classic case is for people with highly variable incomes, for instance people working on commission or people working in bonus driven industries. In lean years you pay just then interest and in healthy years you pay down some principle.
- matheweis 8y ago“Adjustable-rate interest-only mortgage“ ... how is that even legal?
- perl4ever 8y agoI don't know exactly how they work, but hasn't everybody heard about "NINJA" loans? "No Income, No Job, (no) Assets"