My 2-cents for what its worth. I think u have too many variables in ur equation.
Buying now, when housing is going down, husband a student with “future” income (maybe ur income is good to support it), hoping to refi to a higher loan in 2-3 years time (if u have read this board postings and agree with their logic, it would be VERY difficult to do that), trying to save in 401 k and equity with money saved from interest only option in CURRENT market scenario (in another 2-5 years u might be forced to put that money towards housing if ur home doesnt appraise for refi).
When market turns pretty bad in next 2-5 years, that is when u wuld be trying to consolidate ur housing and debt situation. I think that is a bad idea.
As my name suggests, I err “own” san diego property and it is doing nothing but drain my money. Please think before you jump. Unless it makes sense to ur individual situation, dont attempt it. Buying right now and not being able to comfortably afford a 30-year or 15-year fixed with 20% down payment is exposing urself to lot of pain in the next 2-10 year time period.
A 30-year with first 10 year IO is a good loan option, depends on how long u will keep the house, loan amount, down payment etc. in ur case, it might work out cause u have a large downpayment, but then in that case why not a good 15-y fixed mort?? or better hold on to ur equity and buy back when affordability makes sense to ur family budget.
