When purchasing there new home, why do some people choose arm’s or all interest loans.?
to me that is really dumb. Why would you pay all interst for your house. I woulnd’t even do a thiryt year mortgage. First fifteen years is all most.ly intrest. I can’t figure it out. Are these same people naive and listen to real estate agents or mortgage brokers. there like any other salesman. Out to make the sale and that’s it.
I understand you can use the money for another investment. However your not likely to get an investment return higher than your interest rate. Without risk anyway. I also know that people can take the arm and try to sell higher than they bought it for. However, how much can a home go up? Homes more than doubled since 2001. My opion is there are alot of naive (dumb) people out there. They listen to the agent that says it will keep on going up and just take any amount of mortgage. I see these insane prices for homes. But average salary’s haven’t gone up much. Also how can you buy ridicuoulsy priced house hoping to get a promotion in the future to pay for it. It sounds insane to me. Or maybe i’m the one crazy