I personally know many friends of ours who have bought houses in the last year (2006-2007). In all cases, both spouses earning good income (gross combined more than 150,000), many have bought in 4S ranch. One among them is already holding onto property bought in 2004 with an option ARM. All of them who bought recently have no down payment, 100% financing, int-only option ARMs for 5-7 years.
None of them came to us to discuss about it, so I could not have told them not to do the mortgage mistakes that I have already made, but trying to fix right now. When questioned regarding the housing market, the standard answer is “I do not care. I make enough money to support my payments and will enjoy life as I want to.”
I can understand the attitude if it is a home you plan to settle down for quite some time, but what I cannot understand is getting an ARM int-only option in the current housing situation, with prices coming down and rates going up. (30-year rates still being historically decent)
