These are interest only for a "draw period", with interest tied to (some number of points above) either LIBOR or Treasury rates; after the "draw period" there is a paydown period where the loan balance will fully amortize over the remaining term.

The risk of loss in a mortgage is greater than that of a US Treasury.

. $5 trillion in savings for a government $17 trillion in debt may just be too tempting for them not to confiscate via mandatory US Treasury debt conversions at some point in the future if we see the sovereign debt crisis come to our shores.

The last time S&P downgraded US treasuries the bond prices actually fell.

Here's the rates for the counties - http://www.state.nj.us/treasury/taxation/lpt/taxra...You can also check here - http://www.tax-rates.org/new_jersey/property-tax#C...Either way, the taxes are generally higher because the school spending is 3 times more then neighboring states. 

The 30 year US Government Treasury bond rate is about 3.65% .

If she wants no risk she should put here money in the bank or buy 10 year Treasuries at 2.6% or so. 

The treasury does fluctuate when you go for a lock.Just make sure you do not have  a lender  that promises the world and then re-trades you much higher.

It sounds like this property was also going to be a buy and hold, but now you are questioning that intent.The Treasury Regulations require that you have the "intent to hold" for rental, investment or use in a business.

All of these bills needed to be paid and the treasury of the HOA didn't have the money to pay.The counterpoint is if HOA fees are too high it erodes your cashflow and makes the units harder to sell.