I/O Loans Will Doom Us All
From the Washington Post
[In fact, IO loans are bringing to the housing market a risk factor that few home buyers have faced in the past, creating the potential for a whole class of owners who could, five or so years from now, find themselves unable either to make their mortgage payments or to sell their houses.
It's a peril that worries Federal Reserve Chairman Alan Greenspan. And if it worries him, it should worry you.
"The dramatic increase in the prevalence of interest-only loans" is a development "of particular concern," he told a congressional committee last week.]
[In fact, IO loans are bringing to the housing market a risk factor that few home buyers have faced in the past, creating the potential for a whole class of owners who could, five or so years from now, find themselves unable either to make their mortgage payments or to sell their houses.
It's a peril that worries Federal Reserve Chairman Alan Greenspan. And if it worries him, it should worry you.
"The dramatic increase in the prevalence of interest-only loans" is a development "of particular concern," he told a congressional committee last week.]
posted by Little_Silvered at 10:25 AM
2 Comments:
you, my friend, have a great blog...it's up to snuf w/ other greats such as Ben Jones' Housing Bubble blog. despite the dearth of comments, keep up the great work.
Thanks for the compliment. I think Ben's is the best out there. I hope more people leave comments.
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