[wtc911]

Dead on right. I'm about to pick up a sizeable mortgage and VERY seriously considering interest only.

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Why? Unless you have the income and the discipline to pay down the principal by the end of the interest only period taking such a mortgage is a sucker's play.

[armydoc]

Why? Unless you have the income and the discipline to pay down the principal by the end of the interest only period taking such a mortgage is a sucker's play

You didn't read my post (to which RightOnline was replying). I stated that the interest only loan can make sense if one is purchasing in a market that is consistently rising, and one KNOWS they will have the house for only a couple of years (e.g. military). In that case, you never get to paying the principal, and you reap a nice profit on the appreciation of the house's value.

[RightOnline]

Au contraire. I live in a rapidly appreciating area, and I won't be in the house more than five years. Makes perfect sense.