Wednesday, December 21, 2005

Risky Financing: Percentage of U.S. and Washington area borrowers who purchased or refinanced their homes with interest-only loans:

Posted by David at 3:51 PM

6 comments:

  1. AnonymousDecember 21, 2005 1:26 PM

    Seeing something like that makes you think "that's the whole story."

    2000... no housing bubble. 2005... massive housing bubble, with DC racing ahead of the national average.

    I see lots of reasons for this bubble, including a lot of defects in modern American culture, such as the "me first," "forget the future," "don't worry about tradition" mentality. And the atrocious job the media has done (pumping until after the peak) hasn't helped.

    But this chart makes me think that none of the bubble would have been possible without I/O loans.

    ReplyDelete
  2. DavidDecember 21, 2005 2:58 PM

    this was from Washington Post article

    ReplyDelete
  3. Greenspan Screwed USDecember 21, 2005 3:32 PM

    How much do you blame Greenspan for the insane Credit expansion that's occurred over the last 18 years?

    ReplyDelete
  4. AnonymousDecember 21, 2005 4:13 PM

    the difference between the 53% statistic and the 38% statistic is that the 53% stat applies only to the District of Columbia, while the 38% is for the DC metro area as a whole (including the burbs in VA and MD)

    ReplyDelete
  5. AnonymousDecember 21, 2005 4:44 PM

    Someone is signing a mortage with 400k+ and little down and think thing they are relatively safe because housing always goes up.

    Well if that 400k becomes 200k don't ask for tax payers to bail them out. The US constitution doesn't say anthing about protecting people from making stupid financial decisions

    ReplyDelete
  6. AnonymousDecember 23, 2005 8:48 PM

    It depends--I have a 30 yr fixed rate interest only loan which gives me flexibility. Right now I am paying more than the regular fixed rate monthly payment would be which allows me to bring the interest down. These are only bad if you pay the minimum and if they are ARM.

    ReplyDelete

Subscribe to: Post Comments (Atom)