Wouldn’t a 100% loan with a 2- to 5-year teaser rate be the best way to go as a borrower? You get 2 to 5 years to see if your house goes up in value. If it does, you sell it and cash out. If it doesn’t, you walk away, without much lost. With a 100% ARM, the borrower gets the chance to profit if the house value goes up and doesn’t lose much if the house value goes down.
20% down loans were for suckers during the bubble (03-07) years.
