Reply #23: That's how I bought my condo [View All]

[theboss]

I don't see how it is moronic. It's either do that or buy the house five years from now when it is twice as expensive.

This is how it works. I am paying the interest on the loan now and paying a few thousand a year on the principal at my discretion. In ten years, it becomes a regular loan and I begin paying on the principal as well as the interest.

However, this is a super-heated housing market now. I bought the place a year ago and could sell it for a $50K profit today if I wanted. So I've built that much equity. I plan on selling the place before I need to pay on the principal anyway.

So, let's see, I have built $50K in euqity. I get to deduct all the interest on my taxes. And I have a bigger home for less a month than I was paying in rent last year.

How am I a moron?