Categories
Most Read
- Public Records
- More signs of a housing revival
- REAL ESTATE: Local transactions
- Madoff's Montauk home: Meet the broker
- A roundup of real estate personnel items
- Housing construction hits highest in 9 months
- Fact or fiction? 'Pay or play' leaves some out
- Why No Real Estate Investor Can Live Without an Assistant
- 25 percent of area families are asset poor, study finds
- Mortgage rates dip, still above record lows
Good Sites
| More signs of a housing revival |
 |
 |
 |
| Written by Les Christie |
|
With interest-only loans, homeowners pay just the interest for a fixed number of months, usually 60, before they have to start paying off the mortgage at fully amortizing rates. There was an explosion of these mortgages issued in 2005, so many will reset in 2010. Option ARMs are loans in which borrowers are permitted to make minimum payments every month, payments that are less than their monthly interest charges. Many borrowers use that option for as long as they can, but once the mortgage balance reaches between 110% and 125% of the original loan balance, the loans reset into a fully amortizing mortgage -- and payments rise steeply since the balances themselves have also gone up. Real estate analysts predict a spike in these resetting loans, which might force another wave of homeowners into foreclosure. The fear is that all these foreclosed homes will flood the market and drive down prices even more for existing homes, making it harder for new-home builders to compete. Les Christie |
Sponsored Links
Newest Updates
- No Sign of Cooling at Hong Kong Sale
- Eyeing Real Estate? Learn How to Make Your Investment Count
- The Value of Commercial Income Producing Real Estate
- Real estate sales drop during July in Myrtle Beach area
- Like Herding Cats
- The Nation's Housing: Coalition targets transfer fees
- Staging a Photo Ready Home
- Hot looking homes sell at auction – how can you cash in?
- Grow the Space You Have
- Elegant Contemporary Home With Minimalist Interiors in Iowa
- China's Property Market Starts to Cool
- Paul Allen's Malibu
- Hong Kong Land Auction Beats Forecasts
- Why No Real Estate Investor Can Live Without an Assistant
- Investing Full-Time is Overrated