Take the worst problems of one stupid investment and mix it with the biggest concerns of another and you wind up with a Stupid Investment of the Week to the second power.
"It may work to purchase a home with one of these instruments at a time when you expect property values to keep rising and interest rates to remain steady," says Stuart Gabriel, director of the Lusk Center for Real Estate at the University of Southern California, "but if you believe that the path of home prices might change -- in the near- or midterm -- you probably want to be cautious in your behavior and stick with something more traditional."
Hsieh was among several experts to note that there has been a shift in focus for homeowners and buyers in the last five years, to where the key question for many is "What is my monthly payment, and what can I do to lower it so I can manage my cash-flow better or spend more cash on other things." While a 50-year deal might seem like the only way to buy into a great neighborhood or hot market, consumers need to remember that someday, somehow they will actually have to pay for the loan and that failing that, they will add to the national statistics showing foreclosures on the rise.
Says Gerri Detweiler, author of "The Ultimate Credit Handbook:" "If you can't afford a 30-year fixed mortgage, maybe you should reconsider whether you're really living or buying in the right neighborhood. ... You may not want to settle for something less, but that's all you can really afford."