Pamphlet Spells Out Risks of 'Exotic' Loans

Federal banking regulators last month issued a strongly worded warning to lenders about the dangers of nontraditional, or "exotic," mortgages, telling them they feared that borrowers did not understand the implications of the loans. Now regulators have issued a similar warning directly to consumers in a pamphlet that explains how these loans work, including a glossary of terms that represent a new vocabulary for borrowers accustomed to traditional lending. [K. Downey, The Washington Post, October 21, 2006]

BUYERS! Prices, interest rates put a value on buying

The prospective buyers in this real estate market watches the prices and the interest rates adjustments together and then makes an offer at the optimal time to get the best house for the best price and terms. According to The Washington Times, the reality about real estate is that sometimes you have to buy when your life situation dictates it, not when the price is right. The author recommends buyers to buy when prices are stable with a low interest rate and then hold on for the ride. He also adds that if buyers are waiting for prices to hit bottom, it could happen while they wait or they could create their own bottom price by making an offer now before interest rates start their upward climb once again. Get the house they want for the price they want at today's interest rate. [M. Anthony Carr, The Washington Times, September 29, 2006]