2/4     Need Housing Swami advice #2: Let's say a 30-year fixed mortgage
        is 6%, or $2500/month for this particular condo my wife is dying
        to get. Let's also say a 5-year interest only mortgage is 5%,
        or only $1600/month. Let's also say that I'm 90% sure we'll
        move again in 5-10 years as we'll probably need a bigger single
        family home for additional family members. Would it make sense
        to do the 5-year interest only mortgage? If I pay $2500/month
        on the interest only loan of $1600/month, or $900 extra/month,
        would I be paying more principle (1% more) and thus be in a
        better position than the 30 year fixed rate? Frankly, the
        5-year interest only mortgage is looking more and more
        attractive despite all the bad things people say about it.
        \_ that's a big, heavily leveraged gamble that you are making that
           the property will sell for the same or more when you move.  Is that
           a gamble you're willing to make?  Also have you compared the cost
           of renting an equivalent place?  Rent = no risk.  -- NOTSwami
           \_ Most entrepreneurs today would argue that not taking any
              risk is a losing proposition, especially when you have
              many years ahead of you.
              \_ ^entrepeneurs^real estate agents
        \_ what will fuck you over:
           - value of house #1 drops
           - you lose your job or there is a major medical expense (parents)
           - value of house #2 drops less or increases in value
           - you have no cash cushion
           what ist gut:
           - value of house #1 increases
           - you keep your job and there are no major medical expenses
           - value of house #2 increases less
           - you have significant cash cushion
        \_ Are you the same as the guy below? -GS
        \_ People who say bad things about interest-only mortgages are
           idiots. It's just a product. You can use it wisely or you can
           use it poorly. If you think you have the resolve to actually
           pay $2500/month then do it. However, what happens after 5 years
           with the mortgage you are looking at?
           \_ The op said there's a 90% chance of moving. What did you
              get on your SAT verbal? Your reading comprehension is weak.
              \_ Ergo, a 10% chance of not moving. I am curious what
                 happens to his loan in that instance. Does it reset to
                 fully amortized payments? If so, that's still only
                 ~$2500/month. Does the interest rate vary?
        \_ No one here can tell you if that's good or bad.  Everyone's
           situation is different.  But some things to consider: what happens
           if you don't move in 5 years?  What happens if you can't afford a
           house in 5 years because housing skyrockets again?  Will you really
           be able to afford to move?  OTOH, if prices collapse are you stuck
           with a ballooning rate in a house you can't sell and thus can't
           afford to take advantage of the low market?  The opposite points
           can be made for buying into the $2500/month in various market
           conditions.  When it comes to something important like having a
           roof over my head, I choose the safer route.  If it was a second
           place for income-only then I'd be more risky with it.  Let us know
           what you decide and why.