It isn’t so much about the deal as the personal financial situation. How close are you to retirement? What will that retirement be funded by? What is your income? What were you paying before and was that comfortable? What are your other investments? Some of this you may not be comfortable disclosing but it is the only way to get sound advice.
I can only guess, but I/O is probably wrong for you. It works when you have a rapidly increasing market and decreasing interest rates, it worked for many about 2-5 years ago, bit it’s time is over. And even when it was working it was a short term soloution for people fearing they would be priced out and had significant earnings increase potential (doctor/laywer/etc just starting out).
Why postpone paying for your house, with that kind of downpayment you could probably take a 15 yr fixed if you are aprox fifteen years from retirement. Why is a 30 year loan the benchmark today for “aggresive.” I know some genius is telling you to go I/O and then invest the difference but most people don’t, they spend it. If I/O is the only way to have a house and money to invest for retirement then you can’t really afford the house. Personally I think interest rates will rise slowly over the next few years, fix while you can and take the gamble out of your primary residence, gamble in other areas of you portfolio.
