Not crazy by that definition -- but crazy by my definition. the mortgage eats a lot of our take home.
I know a couple of people with interest only mortgages. 1 couple -- it saved them while he was barely working. Now they are back to paying the 'normal' amount. The other couple,they aren't going to be living in the house they have now forever. But,I don't think there is any debt other than the house -- meaning all the ( big) home improvements were cash. They have the ability to wait out the market .Interest only seems to work under some circumstances.
Interest-only works if the value of the house appreciates faster than the interest rate you are paying. Otherwise, you are pretty much screwed.
Otherwise je suis screwée.
I think you mean je suis fuckée.
Whichever one is less grammatically correct.
I worry also that my benefits are currently so good that my COBRA rates will be insanely high, but I can't risk a gap in coverage.
When I consolidated my grad school loans, I made them interest-only the first two years when I was adjuncting, which I still kick myself over. Of course, I couldn't really have managed any other way but still.
Also, I didn't realize at first that they also automatically extended the payment to 30 years at the same time. At least I noticed when the payments went up and could change it back to 10.
Some tool just corrected my spelling of "grampa." As in, what one may call their grandfather.
He says it's supposed to be "granpa."
SRSLY SHUT UP.
That housing blog I mentioned upthread highlights people who obviously had these kinds of loans, and/or got a little home-equity-line-of-credit/refinancing happy and are now forced to sell their house (or walk away from it, leaving the bank to sell it).
That one cherry picks the worst of the worst, though, so I suspect it's not really a true picture. (Bad as the true picture certainly is.)
Interest-only works if the value of the house appreciates faster than the interest rate you are paying. Otherwise, you are pretty much screwed.
Well, if it's appreciating at all you're still staying even, aren't you? Not making money, maybe, but in the first big chunk of a thirty-year you're not paying down much on the principal to begin with.
I would also like to point out that "grampa" is in dictionary.com while "granpa" is not. "Grandpa" is, though.
I'm thinking of getting a new car next month, as my 1999 Saturn has 98000 miles on it, and I foresee a lot driving in my future over the next few months. Sensible as it would be, I'm going to miss the whole lack of a car payment thing. I'm leaning toward the Honda Fit. Has anyone here owned one or heard wondrous/horrible stories about them?
