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

To: piggington who wrote (31768)	5/4/2005 10:13:23 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 110194

Are you following the UK? Their housing market has slowed down and it is now rippling through their economy. Homes: U.K. went cold; U.S. could too money.cnn.com Economy shaken by worst fall in high street sales for 13 years business.timesonline.co.uk Britain braced for credit crunch news.bbc.co.uk

To: piggington who wrote (31768)	5/5/2005 5:33:20 AM
From: Elroy Jetson	Read Replies (1) \| Respond to 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. .