Friday, August 10, 2007

Risky-mortgage meltdown was predictable, preventable (USATODAY.com)



USATODAY.com - It's called "payment shock." A typical home buyer with slightly blemished credit starts off with a $200,000 mortgage, a 7% interest rate and an initial monthly payment of $1,531. Everything's fine for two years until that low "teaser" rate expires and jumps to 11.5%, adding a whopping $625 to the monthly payment.

Source: http://rss.news.yahoo.com

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