Quote:
|
Originally Posted by Gruntina
I am curious, if you had a choice to rent an apartment for the same price of living in a nice home with yard and etc. The only choice would be Rent or Interest Only loan. In both ways you are still blowing your money away but you are tied to the home with a loan.
Which of the two choices would be best? I am wondering if those that are on the interest only loan are using justification on a home they can not afford? Well honestly with the prices of homes in California and seeing millions of beautiful homes around me, I would have to believe a percentage can't afford the homes since the low end home prices are at a handle bar that is much too high for people who has not acclimated a lot of wealth yet.
|
Honestly, in that case I would rent. That way, when the roof goes or the plumbing backs up, the landlord is responsible. And I can calculate exactly what it's costing me - with the interest only situation, not only am I still on the hook for the property taxes, maintenance and utilities, but I can still end up owing money if I can't recoup my purchase price.
If I was planning to flip the house, I might take the interest only risk.
Jackie