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[–] Thisismyvoatusername ago 

Frankly there’s nothing wrong with interest only loans, either. That is actuallya very common loan arrangement. The problem is that such a loan should only be given to someone with the assets to pay or the likelihood they will have the ability. Thos cannot be based on the current ability to get a loan, or they could simply constantly flip with no ability to ever repay. That alone wouldn’t even be an issue except the economy is not static and their circumstances may change drastically.

Depending on the interest rate, I’d actually be interested in an interest only mortgage. It would give me more money to deploy to other investments. At the end of the day my house is just a house. It isn’t an investment. If I could only pay interest on it at a similar rate to what I pay to amortize, I’d be much better off.

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[–] 13651060? 0 points 1 point (+1|-0) ago 

Agree that they aren't evil by themselves (I know folks who buy junk houses, restore and sell them using these loans) but they were way over used. The issue before was using them too often for people as the primary loan on their only place of residence based on their possible future ability to refinance/repay (ie: the loan would be too much otherwise so they go this route to get into any loan).

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[–] Thisismyvoatusername ago 

I agree. I mostly just disagree with the government being involved at all. Without it no bank would have ever made too many bad loans. And also those of us who aren’t credit riskswould be free to get our own personalized loans from banks. In the name of helping people, the government screwed up the entire econ9my. It’s just like health care or college education. The federal government needs to get the fuck out of every nook and cranny of our lives.