The housing market is a lil excessive right now, but it had been down for about 10 yrs and it was just waiting for a grouth spur. Now when the bubble bursts house prices are gonna drop, but they wont drop as much as they have gone up. If ur in the business of real estate this is good overall.

 

How long are you planning on being in it? What about an ARM? Or a 7 year balloon?

If you really want to work on your principal, what about a 15 year fixed? Payments will obviously higher, but not all that much 15 year fixed rates are pretty low right now.

 

Your property will get equity if house prices keep going up. Its just that you wont be putting any money into it of your own. If you think about it, most of ur montly payments are intesrt anyway, maybe like 1-300 bucks a month of a 1500-2000 house mayment goes to principle.

 

Repo's here we go,

 

im gonna do IO hnoes:

 

yea i would say prolly in the range of 2-4 years mayb when these interest only mortgages have the principle payments kick in, there will be a big sell off of property. that might be a likely point when this bubble bursts, i dont know but sounds like a reasonable time.

 

if that is the case I feel sorry for whoever has that.

out of the 1500 (1400 actually but we pay 1500). 1050 of it goes to principle for me.

but we manage our finances very well.

 

damn rick, thats one cheap mortgage :eek3:

 

well rick isnt it the 1st few yrs of a morgate just interst? thats what i ment. and of course ur case is different, are you makin 2 payment a month? either way i was being general about it.

 

it wasn't always that way. took a lot of self control and planning to get it that way.

however our initial was 2400/month and around 900 of it was going to principle. it was a 15 year loan. now our principle is 1/2 the original amount and we refinanced to a lower interest which gave us the lower payments.