Many Buyers Opt for Risky Mortgages

Off topic warning. I see this new load vehicle as a "hay cart to hell" but maybe that is only because I had to listen to stories from people who had lost everything in the Depression. I don't think I have the money or liquity to do get out of the way of the coming real estate debacle, but I know that this kind of loan is going to sink lots of people. Our first mortgage, on a frame four-flat in a marginal neighborhood in Chicago was at 11% and we thought we were lucky to get that. It was so hard to get money for a downpayment then. We had an insurance settlement that gave us a way in. I wonder how these "interest only" loan payers will do if their interest goes up to 10% or something like that. Anyway, Barbara says, watch out for this in the news and to quote my grandpa "never buy anything on credit".Many Buyers Opt for Risky Mortgages: "reflects 'increasing speculation' that is occurring in the real estate market, as investors pursue interest-only loans 'because they need to devote less resources to servicing this debt.'"