Friday, April 08, 2005

$80,000 Extra Interest Is "Godsend"

You may recall that the California Housing Finance Agency bank rolled out the Interest Only Plus loan for qualified first time home buyers. Mr. Broderick Perkins at Realty Times has a write up on it that comes up with some hard numbers.

"Nothing down, five years of interest-only payments and a low fixed interest rate of 5.25 percent (as of this printing) that doesn't change for the life of the loan..Ken Giebel, at CalHFA, says you'd pay about $79,000 more in interest over the life of the CalHFA loan compared to a conventional mortgages."

"It's continuing evidence that lenders and government agencies will do whatever it takes to spur the housing market and allow more people to become home buyers and help the economy," said Rick Pelleriti, a mortgage planner.'It's certainly something I'd recommend to some of my clients.'"

7 Comments:

At 11:54 AM, Anonymous Anonymous said...

Greenspan/bubbles/marco island depreciation:

http://www.zwire.com/site/news.cfm?BRD=2256&dept_id=457707&newsid=14293382&PAG=461&rfi=9

 
At 11:55 AM, Anonymous Anonymous said...

Shiller article: what goes up must come down.

http://www.latimes.com/news/opinion/commentary/la-oe-shiller7apr07,0,6163124.story?coll=la-news-comment-opinions

 
At 11:56 AM, Anonymous Anonymous said...

Another shiller article:

http://www.npr.org/templates/story/story.php?storyId=4579179

 
At 12:21 PM, Anonymous Anonymous said...

Did anyone see that Town Hall program on CNBC last night? i swear i heard one bull claim that home equity is like finding money under a mattress... that is sooooo wrong! home equity is NOT free money... you still have to re-pay it... when is everyone going to wake up?

 
At 12:27 PM, Anonymous Anonymous said...

Did anyone see that Town Hall program on CNBC last night? i swear i heard one bull claim that home equity is like finding money under a mattress... that is sooooo wrong! home equity is NOT free money... you still have to re-pay it... when is everyone going to wake up?

 
At 12:49 PM, Blogger deb said...

This comment has been removed by a blog administrator.

 
At 12:50 PM, Blogger deb said...

This just in...
Greenspan says all this new debt is GREAT for our economy. What have we all been thinking...

http://money.cnn.com/2005/04/08/news/economy/fed_greenspan.reut/index.htm

 

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