Sunday, September 03, 2006

Nightmare Mortgages

Is the title of Businessweek's cover story.

Although a tad lurid, the article speaks to some of the hot buttons du jour of consumer finance

1. Softening (bursting) real estate bubble
2. Foreclosure
3. Rising cost of money

And some timeless ones

1. Dishonest lenders
2. Struggling, hard working americans

There is a lively debate in the readers comments section, worth reading. From my perspective, the irony hurts.

The option arm is a great product, which is easily sold in an unethical manner -- ie. where the customer is unclear that using the minimum payment will add principal to the loan balance.

With interest rates headed down again, the fixed rate is an easy choice - but the right one?

Consider it here:

OPTION ARM vs. FIXED Calculator

There are countless people who could benefit from this product, sold and used properly. Its appeal to the savvy will outlast the headlines.

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