By then they will be many thousand of dollars upside dwon on their loan. Can’t refi that way.
That's not a given, but if your wish comes true they will be.
Wow, what an intriguing article. That this guy parades his stupidity in a regular article is surprisingly candid. He thinks he was snookered, but they were just stupid.
One of his comments was especially head-scratching. That is, that since it is a ‘starter home’ why bother paying principal. Yikes! That’s the whole purpose of a starter home. Build up some equity, take care of the property so it increases in value, and then you will have an easier time getting into a better house.
My wife and I bought in ‘98 at 125K with 20% down (1,100 sq feet, now that’s a starter home!). Last year, we moved into a 2,900 sq foot home with 20% down basically from the equity of the first house.