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: russwinter who wrote (35937)7/14/2005 7:06:59 AM
From: Wyätt Gwyön  Read Replies (2) of 110194
 
from that NYT article you mention:

This year's fashionable model, known as an "option ARM," allows borrowers to make payments with monthly rates starting as low as 1.25 percent for the first five years of the loan;

on the one hand you are saying teaser rates are dead, but OTOH this article says you can have 1.25% interest for 5 years. is this true, or is it a typo by NYT? if so, then a $1 million mortgage would barely cost $1000 a month for five years, not to mention less with negative amortization. by this logic, one might even say California houses are underpriced.

another question: with a negative amortization loan, is the negam cap tied to current market value? if market values fall, can the negam feature go away (because your LTV would end up being too high)?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News