11-07-2006, 05:15 PM
All of the loan "products" like interest only, ARM, etc are really not a good idea to use right now with the market on a short term decline. There is a reason these things didnt really exist before the housing boom. Now that its not booming anymore, you can get yourself into big trouble with them.
Chad also keep in mind that the market here in NoVA is much higher than MD (especially MD a few years ago), and most of us dont have 2 solid incomes.
everyone should go to bankrate.com and check out their mortgage calculator. Plug in house price and a interest rate and see how the mortgage payment looks. Dont forget to add property taxes (can be $8k+) and condo/hoa payments, and PMI if you dont have 20% down.
And take a look at the amortization table. You will be amazed how little of that payment is actually going towards the principle.
Chad also keep in mind that the market here in NoVA is much higher than MD (especially MD a few years ago), and most of us dont have 2 solid incomes.
everyone should go to bankrate.com and check out their mortgage calculator. Plug in house price and a interest rate and see how the mortgage payment looks. Dont forget to add property taxes (can be $8k+) and condo/hoa payments, and PMI if you dont have 20% down.
And take a look at the amortization table. You will be amazed how little of that payment is actually going towards the principle.