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Hi Catherine,

Thanks for your reply. One question...

You wrote:
For the average homeowner, such a strategy merely erodes principal because there's no one else (renters) making the payment. I don't like neg ams for primary residences when there are products such as 1- and 6-month LIBOR ARMs that do practically the same thing (choices = interest only, fully amortized 15/30 year) with a margin half as large as Option ARMs (1.25 vs. 2.5, respectively).

Isn't part of our loan compliant with the same things you are talking about here? We do have the option under the loan I proposed to pay Interest Only, Fully Amortized 15/30 year payments instead of the minimum payment due. Wouldn't this then be the best of both worlds for us in the short-term (as primary residence) and longer-term (when we convert to rental)?

Please correct me if I am wrong, but that is how I read your reply. Since we do have the option of those other type payments in any month does it make it similar to the LIBOR you are recommending?

Thanks a lot! :)

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