- "The loans are attractive because their intitial monthly payments are tantalizingly low - about 1,367 a month for a 320,000 mortgage, compared with about 1,842 a month for a traditional fixed-rate loan. f home prices fall, though borrowers could lose big"
- About 54% of home buyers in DC (just the city, not the sorrounding suburbs) purchased their homes using interest-only loans so far this year."
- "Just 5 years ago, only 2 percent of home=purchase loans in the Washington area were interest only."
- "Mark Zandi chief economist of Economy.com said buyers are turning to interest only loans because real estate has become so expensive partially because of the use of these new products". Exactly
- " 'It largely reflects the inability of famililies to afford a home with a plain-vanilla mortgage.' Zandi said 'This is a way for people to get into what are extremely expensive homes'
A smart man indeed. :-)