[quote=bayparkgal]Why would anyone want a 40-year interest only loan? What exactly do you own? I believe that is called renting. That has got to be the dumbest plan ever![/quote]

You would own the right to collect the amount of future price increases.

You would want a fixed-rate interest-only loan (of any number of years) if the loan amount/payment was tolerable, and you were confident that the property value would increase to your liking within that number of years. You get a place to live, and you get the profit with the lowest carrying cost.

The evidence is as yet incomplete. I don’t think Wells Fargo is offering a 40-year fixed-rate interest-only loan at 4.5%. If they are, there would be many takers, including me.