SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Knighty Tin who wrote (10268)3/16/2004 5:39:09 PM
From: ild  Read Replies (2) of 110194
 
Creative Mortgages Fuel Home Sales

Banks Push Variety of New Loans to Offset
Rising Costs; the Price of a Missed Payment
By RUTH SIMON
Staff Reporter of THE WALL STREET JOURNAL

With home prices surging, lenders are coming up with increasingly creative mortgages aimed at homeowners whose budgets are stretched thin.

Among the newly popular options: loans based on the value of the home after improvements are made; "piggyback" loans that combine a standard first mortgage with a home-equity line of credit. And lenders such as Countrywide Financial Corp. are offering mortgages that allow some borrowers to skip up to 10 payments over the life of the loan.

The rise of these oddball mortgages comes at a time when sky-high home prices are making it tougher for many borrowers to afford their dream house -- or any house. Median home prices climbed 7.5% last year, the biggest increase since 1980, according to the National Association of Realtors. And they're expected to climb nearly as much this year overall. Some markets on the East and West coasts have seen annual double-digit increases since at least 2000, and could see them again this year. In California, fewer than one in four households now can afford the median-price house using a conventional 30-year fixed-rate mortgage, according to the California Association of Realtors.

more at the link
online.wsj.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News