If you don't know what you're doing, it's a complete gamble.

Something to be said for letting the listing agent gamble and spend money to sell your property.

Kinda dicey.My friend's reasoning: I will have a greater equity gain on a house and perhaps a better income (again, renting out my current house instead of the condo).Then there's the other thought of selling the condo now and putting the equity into a cd, gambling that the market will flatten or dip, and buying low.

Never been and I can't gamble yet!

Longbeach is up to its ears with fraudulent loans.

I am not really worried about this, as I’ll just pay the higher rate, or refinance as an investor if they recall the loan.2) There was a separate (unrelated) section that said that I was getting this loan as “owner-occupied” and would be subject to penalties/fines/jail time if I was fraudulent in filling out the paperwork.

So basically if I can invest in LA, I would have but at this moment there is just no way I am going to take on such a big gamble on a slowing market.

Since it is fraudulent to sell a house that you do not hold the title to (isn't this a "double closing"), I understand that you can assign your option to the buyer you have found.

Assuming a mosdest gain of 5% appreciation a year after 5 years the home is worth $638,000 and you still owe $500,000.Always remeber that with a Intrest Only loan you are gambling on your home appriciating.

The ARM is going to start adjusting, but if you want to gamble and think rates will go down by when the rate starts to re-adjust, an ARM may be for you.