I disagree. If you have the financial acumen, interest only is the way to go. Keep saving money each month, build up equity outside of your home. Do you plan on staying in this house for a very long time? If not, interest only is better. Why use your house as a savings account? Now that being said – if you are only paying interest only you better be saving! If you find yourself spending all your income each month, then you bought too much house.
By the way deadzone – I had an interest only mortgage for the last 2 years. I could afford 2 houses or more at that payment level – but I still don’t like the fact that if you stay in the house short term you increased your payment but really didnt get any equity relief.
