HLS wrote: “In a few years, they can always pay down the balance IF they choose.”
That is the very “push-off-my-problems-until-tomorrow” mentality that has contributed to the housing bubble and massive consumer debt load in this country. It is an entirely irresponsible thing to do with one’s money, and no ethical financial adviser is his right mind would advise someone to sign on to that kind of agreement.
And I don’t buy this B.S. about a lending agent not making more one way or the other on interest-only vs. 30-year fixed. There is a reason they all keep pushing interest-only: because interest-only mortgages benefit only the lender.
Interest-only mortgages should be illegal.
I had to tell a lender on the phone a few weeks ago that if she said “interest only” one more time in emails, quotes, or on the phone with us that we’d move on – would cut all all considerations for using her, and that we’d warm other people to steer clear of her as well. And this was after repeatedly saying from Day 1 we are only interested in 30-year fixed. At this point we’re moving on from her anyway. She blew it pushing this kind of crap over and over in the first place.
