“$12000 over 30 years. The extra $125 will reduce in ‘real’ value over the years. Plus, the average length of stay in a house is 6 years.”
I agree, that’s the worst case scenario. The extra interest may be tax deductible depending on AMT status as well. But it does happen. The banks offering to pay you for taking a higher rate are not stupid and think it is risk worth taking.
