They do everything within there power to sell you the balloon payments. Trust me, they tried to sell me hard! They also "pre-qualified" me for a $335,000 loan with just a $30,000 tax form from the previous year (1999). I about shit my pants! We didn't even submit my wife's income info. None the less, we purchased a $150k house and put $14k down.
We have always been able afford our $1150 a month payment on our house, even in '99. The harsh reality is that after refinancing 4 years ago at a lower interest rate for 15 years, and making an extra payment a year, we will have the house paid off (2010) before we will realize any significant equity return in it. This because of Dominions lending practices leading to an astounding number of foreclosures, thusly supressing the value of our homes for at least 5-7 more years.
I don't wanna live in this house for 5 more years. I need a bigger garage! FUCK YOU DOMINION!