Don’t fall for any of the hype you hear from anyone. People used exotic financing vehicles because the majority of them were buying homes that they could not afford.
There is a small segment of homebuyers who are savy and they CAN make a better return on their money then the average joe. For these savy people it may indeed make sense to use leverage and not tie up money in a home when they can make a better return. If you are one of these types then more power to you. If not then don’t risk it.
No matter how great all of your friends are, when you are making an investment as substantial as a home, I STRONGLY advise you to shop with several mortgage brokers… compare programs, rates, and do what is best for you, not what other people do.
Personally, I am risk averse and stick to the old 30 year fixed rate, fully amortized loans and I buy the rate down. If I was savy enough to make a better return on investments I would possibly try a 10 year interest only loan but I am not.
