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It depends on the market but it all depends on your personal situation. If your taking out an interest only loan so you can get a house to keep up with your friends, not only are you retarded, but your making a bad investment. However, if you get a fair loan on a place in an appreciating market, and most importantly, YOU BUY THE HOUSE AT A GOOD PRICE, it can be a great investment. For example, in the NKY/Cincinnati area where I live, we have just come off of 5 or 6 record years for home sales. That means sellers have been able to get top dollar for thier homes, and with interest rates a few years ago, alot of people got great mortgage deals, so they made out. On the other hand, it has now switched to a buyers market, things have slowed down, or returned back to normal I should say, and some people that got adjustable rates (arms) on thier mortgages are freaking out because thier payments have went through the roof and they can't keep up. They made the bad investment when they got thier mortgage. Keep in mind though, an ARM loan is cool as long as your gonna move before your rate adjusts. Anyways...i'll quit blabbering...blah blah blah...
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