Why give the government a free loan? If you are disciplined enough to replace the money you have taken out of your savings, surely you are discplined enough to put the money in that you would get later for a refund.

Oh ho! If I see money, I spend it. Poof, gone. I have little discipline in that regard.
:D

It's done, it took way too long and now all this garbage is floating to the surface about the way it was handled.
Bleh.

I look at interest only mortgages a bit differently. I do not have an interest only, but not a lot of what I pay monthly goes to principle.

If you live in a market with appreciating real estate values, it makes much more sense to have an interest only mortgage than to rent. Your real estate investment continues to grow regardless of whether you are paying down the principle, and you have massive tax benefits.

Hang on....you said you are disciplined enough to use your paycheck to replace whatever you have taken out of savings. What's the difference between that and putting the $20 in that you would have otherwise had withheld in taxes?

That's a good question, but it makes more sense to me doing it this way. I like seeing the $20 add up at the end of the year to one big amount that I can deposit. I know, it makes little sense, but I did confess to being really bad with money.
:)

A big problem (at least here) is the people who took out interest only loans they could barely afford. Now the interest rates are going up and people are behind on their mortgages. Yes, it was their fault for buying a home they could barely afford but the untraditional methods banks are using to get people into homes are messing with the economey as well.

People bad with finances unite!

I recommend two books. If anything they aren't boring reads. You may learn something. I learned a lot, but I have yet to apply it.

Young, Fabulous and Broke by Suze Ormand
and
The Complete Idiots Guide to Personal Finance in your 20s and 30s

Two different theories but good books.

Sometimes I'm glad I rent. But sometimes I'll watch a home fix it show and wish we could have a place of our own to do stuff like that...

Hey, I'm all three of those! :D

Thanks, BTD.