tick... tick... tick...
Starting this year and picking up speed in 2007, as much as $2.5 trillion of non-conventional mortgage debt is scheduled to be repriced. Millions of Americans will soon face significantly higher mortgage payments. Unfortunately, many can barely afford their current payment.
Why is this happening? What will be the consequences?
In a bid to keep business booming, banks and mortgage lenders in recent years have found “creative” ways to make home loans more affordable—even to people with spotty credit histories or weak credit. By issuing “hybrid” mortgages that typically have low interest rates in the first two years, lenders have been able to entice otherwise unqualified buyers into buying a home. However, the initial low “teaser” rates must eventually be adjusted to the fully indexed level of whatever index is specified in the loan agreement. These adjustments are coming due in a big way, this year and next. That means mortgage payments are set to climb hundreds of dollars a month for a substantial number of Americans!
February 26, 2006
Housing bomb
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16 comments:
Our new mortgage payment due Feb. just went up $700 a month, (thanks to higher tax assesment this past year). New bill, higher payment, no warning... this is on a 30 year fixed mortgage! I can't imagine having an adjustable rate!
banker - do not spam this site with the same post on every thread
you are not welcome here if you spam
banker - the only reason anyone visits this blog is because we all know there is a housing bubble and the economy is in trouble. We all want honset feedback. Most of us will make our own choices, good or bad, this isn't a psychic hotline...but it is a great place to get information from people who have nothing to gain or sell, but are watching the local markets.
Banker, open up your own blog and if We want your advice we'll go to it.
your acting like a ten year old girl!
banker,
suck it up!
let the banker post once without being censored. I feel sure most readers of this blog agree. If he is wrong and Keith is right, time will show it. Censoring legitimate criticism is perverse and a violation of the blogging culture.
IMO the banker and Keith can both turn the temperature down a few degrees and let there be a good debate. All of the housing bubble blogs could use a little of the anti-bubble arguments, which are scarce (and probably likely to get scarcer IMO).
Hey Banker, I think the cartoon is DANISH not DUTCH. Go as Bloomberg.
let the banker speak......he gives this blog good publicity though his rants are a little misguided....the blog author shouldn't delete posts anyway (unless there is profanity or racist slurs)
the banker and all trolls are welcome and encouraged
however, any dolt who spams this site with the same post on every thread will get it deleted everytime. viagra ads, realtor sites, and the banker's spam included
I think the banker's post was a thoughtful comment that I don't agree with. I welcome him back. I want my beliefs challenged.
This blog is a challenge to the dominant belief system in the economy today. Ban the banker, might as well ban the blog.
Keep the criticisms coming banker. I want to hear from you. You make me think, so far.
If you become a broken record, I'll pass you by.
Best way to fight a bad idea is with a better one.
PS: Name calling is boring. Stick to the facts, banker.
These statistics for inflation are crazy.
First the increase in the prices of houses is taken out.
Then the price of Food is taken out.
Then the price of oil and gas is taken out.
So now is the core inflation rate.
I think Ben will raise interests rates like Volker did. No matter what you call it. Higher prices is inflation. Too much money is floating around with no productivity. There you have it. doremefas
banker sounds like a 2 year old who lives a, "as long as it don't involve me the world can colapse around me"
I personaly like the varity keep up the good work, banker go count some money and just leave.
I like the banker, he rocks. We all know you all are bitter, missed the boat, liberal, socialist chumps. It does sound like a broken record. You all sit and tell each other the same facts over and over again. You are all desperate to call a top. You can smell how desperate and angry you all are. Dont trade angry. Keith seems to have a mean spirited tone as well, with his bitterness towards anyone who made some $ in this run. I also say this even though I agree with many points that Keith and others have.
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