Slam Dunk

Several years ago I was playing "HORSE" with a few friends on an arcade basketball game.

The shots were getting more and more outlandish until I had an idea. It was a really dumb idea: See video below.

Note: Despite my seriously poor form, it did go in.

That video ended up on MTV's Ridiculousness.

Rob Dyrdek and his guys had a good laugh watching my dunk, and skewering me for my stupidity.

It actually was pretty stinking hilarious.

I imagine big banks must be having a good hearty laugh at how many homebuyers keep willingly signing up for conventional mortgages.

They must laugh in disbelief at how willing we are to pay fixed interest rates of 4%, 5%, 6% or more for 30 year terms.

And they must roar when they see how much money keeps flowing into their banks, and how little is going into these homeowners' equity.

Well I'm not laughing.

It's ridiculous to me how many homeowners are staying in loan products that keep them paying more towards interest than their principal for years.

It's ridiculous to me how many hundreds of thousands of dollars could be saved if borrowers would simply upgrade to the AIO.

It's ridiculous to me how many homeowners keep refinancing and resetting their 30 years back further and further.

And it's ridiculous to me that people would be suspicious of AIO, and not their 30 year fixed loans.

Like we’ve said before, AIO isn't right for everyone.

Some clients simply don't make enough income to make it worthwhile. Others have expenses that are just too high relative to their income.

But for so many others, even on a risk-adjusted basis, it's an absolute slam dunk.

If you've got 20% equity in your home--and more people do now than ever as we're sitting on the most nested equity in the history of housing in the USA--you need to run the simulator to see whether or not the AIO could be right for you. It might just be ridiculously so!