No interest? On the contrary...
There have been a lot of articles recently about the popularity of no-interest loans (this one has some of the pros and cons, registration at the Washington Post required); most of them seem to be a bit alarmist, and talk about how people are going to find themselves in trouble if the housing bubble bursts. Taking a no-interest loan is, more or less, betting your house will go up in value. Though there are no guarantees, of course, in the Charlottesville area in the next few years, that would be a pretty good bet.However, I am a bit conservative, and the one thing I always caution my clients against is maxing out on debt. I don't think a no-interest loan in order to buy a home one couldn't afford any other way is a very good idea, but there are certain conditions under which such a loan is a sensible choice. A reputable lender will give you a variety of options and help you select the best one when financing your new home.
<< Home