Where’s your logic there, bsrsharma? I’m assuming you talk about the decline of the dollar? Well, when the dollar declines, you don’t think real estate values will stay up do you?! Quite the contrary, they will sink into a big hole, so 1/8th the value of the dollar in 30 years, will probably also mean the property will only be worth 1/8 its original value…
lol
I still see a big flaw in this Acorn program. They are giving you an interest only loan because you can’t afford to pay principal + interest. But, in 10 years, the loan re-casts itself, and you have to begin paying principal. I guess ACORN assumes your income will increase in 10 years and you’ll be able to afford the higher payments?
Looks like the same flawed logic as an ARM to me, only the rate is fixed, but the payment certainly isn’t.
Can a mortgage broker shed some light on how much the payment goes up after the interest only period is done?
