Quote:
|
Originally Posted by woj
wow, lots of people will be fucked soon  |
Exactly! That's what we are hoping for! We actually bought and sold our house just south of Tucson in a very booming area .... We made a nice little chunk of change. We DID NOT do the interest only option, we had a 30 year mortgage. Let me make that clear from the get go ... What I am banking on is two things:
1. The housing market to collapse
2. The interest only loans to bottom out
Why? I'll get a smoking house at a killer deal! I know a bunch of people that are already getting forclosures WAAAAAYYYYY below market value.
Those interest only loans are scary. I saw a special on 60 Minutes where a guy in CA bought a 800 sq. fixer upper for $600k on interest only and *hoped* to sell it for over a million when he was done with it. Now, if he can't sell, he's boned....pending interest rates continue to increase and he can't make his mortgage.
What many do is the 80/20 split to avoid the PMI and cap the interest. I'm not sure how it all exactly works cause like I said, I stayed as far from it as I possibly could.