The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: piggington who wrote (31768)	5/5/2005 5:33:20 AM
From: Elroy Jetson	Read Replies (1) of 110194

Interest-only loans are so "old school, so 2002. The hottest home loan product is reduced-pay interest-only loans. These loans may accrue interest at a variable rate of 5%, but each month provide an option of a payment which is equal to 1.25% per year. Chosen each month the mortgage increases in size by 3.75% each year. These loans typically have a maximum accrual of 115% to 125% of the original loan value. But once you reach the maximum, its obviously time to refinance. This type of loan gives the borrower a monthly payment of only $1,042 per month on a $1 million loan. This may explain why my gardener now owns eight homes and my housekeeper owns two. .

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next