I read a really interesting article about this just a couple of days ago in the newspaper. I just bought a house myself, and the mortgage officer wanted to out my in an 80/20 loan with the 20 being an interest-only loan. I told him to make it a regular loan. Anyway, the part of the article is below:
- Matt Small http://www.charlotte.com/mld/charlotte/living/home/10651631.htm Mortgages keep payments low but hide dangers Loans may quickly turn into money-eaters that can lead to foreclosure KENNETH HARNEY WASHINGTON - Are low monthly payments on a home mortgage always good? Are you kidding me? Of course they are, you might answer. But a new report issued by a Wall Street firm suggests that some low-payment loans in today's hot housing market could prove to be highly toxic to borrowers who don't really understand the risks they entail. The report is from Dominion Bond Rating Service, a company that evaluates the risk characteristics of mortgage securities purchased by deep-pocket investors. Those bond investors now provide most of the funds loaned to American home buyers, and they view defaults and foreclosures as dread diseases to be avoided. ... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143743 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
