Quote:
Originally Posted by berettafan
OMG yet another way to bring this country to ruination.
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In theory, it's actually a pretty decent product. You pay some nominal amount per month for your mortgage and hopefully invest, whatever you should be paying, into something with a return better than your note rate, plus taxes, plus inflation. At the end of the year, you pay off your negative equity with the dividends or gain from your investment(s). Of course, the real problem is that very few people who got these loans are the kind of folks who are disciplined and savvy enough to do it right. But if you know what you're doing, you can save a lot of money this way.