What’s the difference between getting into a 50-year mortgage that you don’t intend to be in long enough to pay off and being in an I/O or ARM? I would say that most buyers right now have no intention of staying in one home until it’s paid off.
It depends on how a person percieves the trends, too. If they think that during their holding period – whether that period is 1-year or 15-years – the overall value will go up then the trade off is between having cash to use now vs. having a little more cash in the future after they sell. It’s a shortsighted and imprudent way to look at things but you can’t be big pimpin’ without spending every available dollar that comes within your grasp.