This seems insane:
Mortgages: Beating higher rates
Think interest-only mortgages are the answer to higher rates? What you save now, you pay for later.
August 20, 2003: 5:13 PM EDT
By Sarah Max, CNN/Money Staff Writer
BEND, Ore. (CNN/Money) - You started house hunting when interest rates were at their very lowest. Now that they've increased by more than a percentage point, your $300,000 home budget has suddenly shrunk to $250,000.
Enter interest-only loans. As the name suggests, you pay only interest for the first five, 10, even 15 years of the loan, thereby lowering your monthly payment by quite a lot. At least initially.
"We've seen a dramatic pickup in these loans since rates starting going up," said Anthony Hsieh, CEO and founder of HomeLoanCenter, an online mortgage provider in Irvine, Calif. Hsieh added that one in seven loans processed by his company is an interest-only product.
money.cnn.com |
