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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (29729)	3/31/2005 11:53:24 AM
From: All Mtn Ski	Respond to of 110194

The Denver metro area (where I live) has seen a large amount of building for the past several years, well beyond the population growth, and that has reined in price appreciation. I have a buddy who is mortgage broker and he invited me to a seminar at his office with his CEO. The afternoon session was for financial planners with the evening session being for the general public. I went to the afternoon session and the whole presentation was about how worthless home equity is and how everyone should do interest-only loans and invest the difference that they would be paying in principal into other investments. I believe it was titled "Using Home Equity to Become a Millionaire". It also strongly suggested that people with existing home equity should tap it all to plow it into other investments. It basically was a hyped sales pitch, the mortgage brokers can extract the money from the home and the financial planners can invest it. Both professionals win through fees and commissions while the home owners shoulder all the risk. They were even using interest rates of 8% and 10% to show these graphs that are just designed to push people's greed buttons. That buddy just purchased a house with an ARM, not an interest-only loan. So if the mortgage broker that is pushing the interest-only/tap your home equity loan is not doing that himself....well that speaks volumes. A-M-S