06-08-2011, 08:41 PM | #111 | |
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And if the market took an upswing, I would have sold it for a profit. My co-worker bought a house for 630k and put 150k down. Thing is worth 380K, which is less than what he owes. Now...he is stuck with it or stands to loose 150k.
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Train Hard Ron Paul - 2012 Mark of Excellence GM Last edited by 101lifts2; 06-08-2011 at 08:45 PM.. |
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06-08-2011, 09:38 PM | #112 | |
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When the real estate market was really good people were able to accrue much more equity from increasing values than they did from the portion of their payment that went toward the loan principle. Of course it was also common to take out equity loans to buy crap so that equity often didn't stay with the house for very long. |
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06-08-2011, 09:48 PM | #113 | |
Let's do another U-turn
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06-08-2011, 10:02 PM | #114 | |
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To me it's kind of like the chumps who take out a 72 month loan on their car, just so they can get a Lexus they otherwise couldn't afford. Last edited by Homeslice; 06-08-2011 at 10:05 PM.. |
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06-09-2011, 01:18 AM | #115 | |
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I would rather have an interest only payment that I can pay principle, but not have to be obligated to pay principle/interest in case of loss of work or a big expense as long as the interest rate is not higher than a 30yr fixed. As long as you make the principle payments, you are no different than the 30yr fixed loan.
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