[ArrogantBustard]

Very few people have the cash on hand to make a large down payment &c

Yes, I'm well aware of that. We're talking about NO down payment, here, and getting an interest only loan on top of that. It's nuts. It's a formula for being in debt for the rest of your life, the financial gain is only in the income tax deduction, and IMHO it's evidence that one shouldn't be buying that much house.

[goldstategop]

If you're never going to get a clear title to a home, its best to go fixed mortgage. At least the payments then are predictable. 30 years ago, just about any one could pay off a loan and own their home free and clear. With the housing prices the way they are today, I don't see that happening, unless someone wins the lottery.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[OldArmy52]

Interest-only mortgages make sense only for real estate flippers who are near certain the house will appreciate in the future as it has in the past, so it can be sold later at profit.

For folks doing an interest-only now, at least here in Calif, where fixerupper dumps start around $500k, they should instead continue to rent.

Housing here is in an upwards spike and spikes, at least in pps of stocks, sooner or later fall back down.

Rent now. Wait for the next recession and buy a lot lower.