Interest only and Payment Options Mortgages take hold in Bay Area
ContraCostaTimes.com | 12/07/2006 | Brokers help borrowers untangle their mortgage options
“These exotic mortgages have kind of taken over,” said Mike Tacconi, president of the East Bay chapter of the brokers’ association.Indeed, they have. In the Bay Area, 43 percent of loans taken out in 2005 were interest-only loans, according to San Francisco based LoanPerformance. Another 28.3 percent were payment-option, which can lead to a growing loan balance known as negative amortization.
Well, we love exotic foods. Why not exotic mortgages?
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