Wednesday, December 13, 2006
KGO radio this morning was a whine-fest about how expensive the market is and home owners that were duped into "exotic" financing that will force them to sell their homes when their payments rise. My opinion, most (and yes there are some sad cases out there of unscrupulous loan agents) buyers knew what to expect when they opted for that loan. ARMs adjust! 2 year fixed rates adjust in two years! Interest only payments for 5 years mean year 6 will be higher! These short term loans were not meant to be held forever. They were an entry vehicle for the first few years. There is the cost and effort of refinancing. But needing to sell your home is an extreme measure and probably not necessary. Need help? Talk to my buddy Amanda Pham at Sinclaire Financial 408-942-7962, she rocks. As for the market being expensive... yes it is. And since 1991 when I got in to this business, NEVER has there been a year when people said anything other than that. This is an expensive market, but justifiably so.