Yeah, this boom is extremely sick. It is a shame that people are leveraging themselves so much trying to get the "bigger house". The problem is that the yield curve is flattening which has continued to drive this housing boom. It absolutely cannot last forever, and when there is a big sell off, it is going to drastically hurt those who are doing these interest only loans. However, if someone used one of these loans to build equity in a house and sold it and then moved on to a traditional mortgage, that would be different. However, they move to a bigger house on another interest only loan.

My bank does not deal in interest only loans.