recent posts

The May Short Figures on Home Depot

Betting on the Bubble

New Yorker Caption Contest #8

One Year from Today

New Yorker Caption Contest #7

New Yorker Caption Contest #7

New Yorker Caption Contest #7

Housing Bubble Starts to Burst

New Yorker Caption Contest #6

New Yorker Caption Contest #6

archives

May 2014

May 2012

February 2012

November 2011

September 2011

August 2011

July 2011

June 2011

May 2011

March 2011

February 2011

January 2011

December 2010

November 2010

October 2010

September 2010

August 2010

July 2010

June 2010

May 2010

April 2010

March 2010

February 2010

January 2010

October 2009

September 2009

June 2009

April 2009

February 2009

January 2009

December 2008

November 2008

October 2008

September 2008

August 2008

July 2008

May 2008

March 2008

February 2008

January 2008

December 2007

November 2007

October 2007

September 2007

August 2007

July 2007

June 2007

May 2007

April 2007

March 2007

January 2007

December 2006

October 2006

September 2006

August 2006

July 2006

June 2006

May 2006

April 2006

March 2006

February 2006

January 2006

December 2005

November 2005

October 2005

September 2005

August 2005

July 2005

June 2005

May 2005

April 2005

March 2005

February 2005

January 2005

December 2004

November 2004

October 2004

September 2004

August 2004

July 2004

June 2004

May 2004

April 2004

March 2004

February 2004

January 2004

December 2003

November 2003

October 2003

September 2003

August 2003

Monday, June 13, 2005
Is this the building tectonic pressure that's going to release the tidal wave? See recent CNN-online article.

Points of interest:

- 42% of people are buying houses with nothing down

- Only 10% of people are buying houses with the traditional 20% down -- most are using piggy-back loans to get to the 20% down payment. Problem? The rate on the piggy-back loan is variable (meaning they're fucked once rates start to rise if they can't sell their house, two factors which would seem to covary strongly in a market collapse). I wonder if they limit paying off the loan all at once.

- You can now get a loan where the monthly payment is less than the interest on the loan (the less-than-interest loan)!

Note to self: short lendingtree.com, invest in the foreclosure/collections/repossession sector
Blogger Tomohiro Idokoro comments:
Question: what are the terms on all those variable-rate piggy-back loans? Can they be paid off early?

What are the terms on interest-only loans? Does the monthly payment rise at the end of the interest-only payment period? Does the rate get readjusted?