The article has some relatively sane points to make about current financing practices. Orlando, like the California market, has rapidly appreciated in price. However the use of interest only loans is
"In Orlando, the use of interest-only loans increased from 1.7 percent to 23.3 percent from 2001 to 2004, making it the sixth-highest rate nationwide, LoanPerformance reported."
which compared to California's 61% is still somewhat sane.
"Consider the payment on a $200,000 loan. At 5.35 percent interest, the monthly payment would be $891.66, not including insurance and taxes. Five years later, a modest 2 percentage-point increase in interest rates would increase that payment to $1,460."
Just a small interest rate movement and the price nearly doubles.
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