Tag: mortgage

  • Bad Housing Market

    Last week, I heard someone complain that the housing market was “bad.” Well, when housing appreciated 10-20% per year, I heard other people complain that the market was “ridiculous.” The truth is that the housing market has never been healthier. Now that the recession has washed away a lot of the speculative excess, housing is…

  • Interest Rate Cut

    The Fed’s second interest rate cut in just over a week really confused me. Instead of being merely aggressive, it appeared a bit desperate. Perhaps, the national economy is faring much worse than I had believed. The problem for home owners and real estate investors is that our perspective is often local. Easy to tell…

  • Bad Loan or Bad Financial Decisions

    The Los Angeles Times ran an interesting article today on pay option loans. Essentially, these home loans work just like credit cards in that each month the lender only requires a minimum amount due. This minimum amount though does not even cover the interest due, leading to negative amortization. In other words, by just paying…