Just because something is popular does not mean it is a good idea….
I/O loans are rarely a good idea and an absolutely horrible idea in a down market.
Surely your broker must have better reasoning than it’s “popular” for this choice. What is his reasoning?
If you are going to be in your house for 7yr+ then I assume he has you looking at 7 or 10 yr arm. correct? If it is anything less that could be suicide in this market.
Today the 30 year is a lower interest rate than the 7 and 10 year arms. So I can not fathom what he is thinking…
