The 5/1 Interest Only ARM Returns

[patb]

[quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.

[(former)FormerSanDiegan]

[quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.

[(former)FormerSanDiegan]

[quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.

[(former)FormerSanDiegan]

[quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.

[(former)FormerSanDiegan]

[quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.

[(former)FormerSanDiegan]

[quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.

[jpinpb]

Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.

[jpinpb]

Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.

[jpinpb]

Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.

[jpinpb]

Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.

[jpinpb]

Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.

[(former)FormerSanDiegan]

[quote=jpinpb]Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.[/quote]

Looked at the link … Now those are some stinker loans !! Why not just have an indefinite-term interest-only loan ?

[(former)FormerSanDiegan]

[quote=jpinpb]Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.[/quote]

Looked at the link … Now those are some stinker loans !! Why not just have an indefinite-term interest-only loan ?

[(former)FormerSanDiegan]

[quote=jpinpb]Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.[/quote]

Looked at the link … Now those are some stinker loans !! Why not just have an indefinite-term interest-only loan ?

[(former)FormerSanDiegan]

[quote=jpinpb]Hold the phone, everyone. These are even uglier loans:

Remember those horrific option ARMs? Well they are now morphing into other products
Shocked yet? Well how about a 40 year IndyMac loan modification.
An example, Modified Unpaid Principal Balance 472,136. Maturity Date 6/1/46.

I guess we’ll be kicking the can until it’s time for the newborns of today to be old enough buy.[/quote]

Looked at the link … Now those are some stinker loans !! Why not just have an indefinite-term interest-only loan ?

[Author]

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