I can see two senarios where having an interest only mortgage are good.
1. You are confident that you'll be making a lot more after 5 years. A combination of deflation and raise can make the increased payment affordable.
2. You are sure, your house will appreciate at least 10% a year over the next 5 years. You'll sell your house before the 5th year (assuming there is no penalty). With whatever money you made, you can afford (wouldn't other houses appreciate as well :roll another houses at that time...
I guess only #1 is good.
1. You are confident that you'll be making a lot more after 5 years. A combination of deflation and raise can make the increased payment affordable.
2. You are sure, your house will appreciate at least 10% a year over the next 5 years. You'll sell your house before the 5th year (assuming there is no penalty). With whatever money you made, you can afford (wouldn't other houses appreciate as well :roll another houses at that time...
I guess only #1 is good.