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PDXsooner
2/3/2006, 04:26 PM
good? bad? both? when should they be looked at? any one?
oumartin
2/3/2006, 04:31 PM
if you have no desire to actually pay the house off or live there a short while go ahead!
85Sooner
2/3/2006, 06:17 PM
Bad, Bad and Bad. Financially speaking.
SoonerInKCMO
2/3/2006, 11:36 PM
How confident are you that the property you're considering buying will appreciate at a higher rate than the loan's interest rate?

How confident are you that the property you're considering buying will appreciate at a rate that exceeds the loan's interest rate by more than the rate on t-bills or other guaranteed securities?

How much risk are you comfortable with?
TheHumanAlphabet
2/4/2006, 03:41 AM
These loans require that the value of the house goes up and up and up...

Otherwise, you'll be stuck upside-down in a loan. Many people had this happen during the oil bust and just walked away from the house.

Not a good bet in my opinion.
Killerbees
2/4/2006, 10:30 AM
Its a gamble more so than the stock market.

If you are sure that you will have the house for a short period only AND you are confident that the value of the house will go up then you might consider it. About the only reason I would consider one is to buy an undervalued that can be quickly repaired and resold at a higher price. There are alot of people smarter than me warning against buying houses with the expectation of the housing market to continue the way it has been going.

Alot of people are using these types of loans to buy houses they otherwise could not afford. That is the worst type of situation because they certainly are in no position to afford the risk if things go sour.
BoomerJack
2/4/2006, 11:26 AM
Just try to make sure that you don't have to go the "loan origination" office that is in the back of a pool hall.