***YOU SEE??? I TOLD YOU!!!***
Ignore this at your peril
Warren
LATE PAYMENTS ON MORTGAGES RISE
Soaring housing prices and aggressive mortgage lending have saddled home buyers with ever greater levels of debt, and early signs are now emerging that more people are unable to keep up with their monthly mortgage payments, the Wall Street Journal reported today. The increase in late loan payments comes as more buyers have been forced to stretch financially to afford ever costlier houses in recent years, and many homeowners have increased debt by tapping their home's equity. Analysts say that more relaxed lending standards on the part of mortgage lenders also resulted in higher debt loads, which some borrowers are now struggling to repay. With the housing market cooling and interest rates rising, "by the end of the year you could see a substantial increase in delinquency rates" for mortgages, says Thomas Lawler, a former Fannie Mae economist and now a private housing consultant. An analysis by Bear Stearns found that delinquencies on loans originated in 2005 were in most cases far higher than on loans issued in previous years at the same point in their life cycle. Credit Suisse found that borrowers who took out adjustable-rate mortgages (ARMs) in 2005 were three times as likely to be delinquent on their payments after the first year as those who took out ARMs in 2003 and 2004.
Ignore this at your peril
Warren
LATE PAYMENTS ON MORTGAGES RISE
Soaring housing prices and aggressive mortgage lending have saddled home buyers with ever greater levels of debt, and early signs are now emerging that more people are unable to keep up with their monthly mortgage payments, the Wall Street Journal reported today. The increase in late loan payments comes as more buyers have been forced to stretch financially to afford ever costlier houses in recent years, and many homeowners have increased debt by tapping their home's equity. Analysts say that more relaxed lending standards on the part of mortgage lenders also resulted in higher debt loads, which some borrowers are now struggling to repay. With the housing market cooling and interest rates rising, "by the end of the year you could see a substantial increase in delinquency rates" for mortgages, says Thomas Lawler, a former Fannie Mae economist and now a private housing consultant. An analysis by Bear Stearns found that delinquencies on loans originated in 2005 were in most cases far higher than on loans issued in previous years at the same point in their life cycle. Credit Suisse found that borrowers who took out adjustable-rate mortgages (ARMs) in 2005 were three times as likely to be delinquent on their payments after the first year as those who took out ARMs in 2003 and 2004.
posted by Warren R. Graham | 4:13 PM
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