From the SFgate.com –
Interest-only loans accounted for about 31 percent of all new mortgages last year, but David Lareah, chief economist with the National Association of Realtors, says he is more worried about option ARMs than interest-only loans.
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As I tell all of my clients, think of your housing purchase as your home – a place to live, rather than simply as an investment. Keep your perspective and your expectations in check, and you will usually be fine.