Ray– You’ve mentioned this investing the difference thing several times and while it may apply to you, don’t kid yourself that’s the reason for most people that choose IO loans.
Nope, for most of them, it’s the *only* way they can (marginally) afford houses in this ridiculous market. I’ll bet a number of those even kid themselves that they’ll pay the fully amortized payments and only go IO during the “tough” times.
