Silicon Investor (SI) -- The First Internet Community

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.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (169997)	8/27/2005 2:39:55 PM
From: geode00	Read Replies (3) \| Respond to of 281500

WOW! Just caught part of this so, as best as I can remember from NOW on PBS:http://www.pbs.org/now/politics/mortgages.html - 60% of new loans in California are interest only. That doesn't mean they remain interest only, that just means in 3-4 years the rate goes up (most likely in the current scenario) and the payments go up to start paying off the principal and the increased rate. - A couple in Napa have been buying up during the boom and have now bought a $1m home. They earn, together, about $100K. Their mortgage is $750K. Their interest only payment is currently $3200/month which they can barely make. If they paid interest, they would pay $4000/month which they probably couldn't make. Since when did mortage lenders loan out income:mortgage of 7.5 times? WOW. Things are so much worse than I thought. We have to get out of Iraq. We cannot afford this.