Quote:
Originally posted by dmoolenaar
How much of a drop depends on the foreclosure market in light of the many adjustable loans that have been written. Folks who planned to stay put should not be affected unless the jobs/economy take a huge dive and they are forced out.
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I fell into this intrest only mortgage thing. I technically have 2 mortgages. One for %85 of the value and another for %15. This keeps me from paying mortgage insurance.
My first (%85) is fixed at %5.25 for 5 yrs. I don't plan to be in my new house for any longer than that, so no big deal.
The second (%15) is vairable, which scares the hell out of me. I mulled this over for a week before I commited to it. I figure if the rates sky rocket I can always pay it off, but it will hurt. I also have an option to pay off the principal if I choose, which I doubt I ever will.
I live in a pretty prestegous area so I highly doubt that the value will drop below what I paid. I just have to get out before that fixed goes vairable or refinance.