Jamie Enterprises Realtors. Houston Texas real estate/Are
Interest Only Loans “safe” for Houston Buyers? We specialize in approving loans. All
loans approved regardless of credit problems.
Released on = September 13, 2005, 6:01 am
Press Release Author = Jim Huger
Industry = Real Estate
Press Release Summary = Jamie Enterprises Realtors. Houston Texas real estate/Are
Interest Only Loans “safe” for Houston Buyers? We specialize in approving loans. All
loans approved regardless of credit problems.
Press Release Body = http://www.jamieenterprises.com/ Is it safe for first time home
buyers to purchase a home in Houston, Texas utilizing the no interest only loan?
According to Joe Amoroso, if one were to take a look at personal finance columns and
economic outlook stories in your local newspaper, you’re likely to notice that
journalists have taken a keen interest in one of our industry’s most popular
products: interest-only (IO) loans. Joe Amoroso is a senior vice president with
Opteum Financial Services. You know it’s a topic worthy of consideration when
everyone from Alan Greenspan to local consumer advocates is talking about it. The
issue , as they see it, revolves around a convergence of two factors-rising rates
and declining home prices in some markets. Here’s one potential scenario: If rates
rise, those with adjustable rates who can’t afford higher payments will attempt to
refinance. But if they happen to live in an over-inflated market where there is a
downward adjustment of home prices, they will suddenly owe more than their house is worth and
be unable to refinance. There exists much commentary concerning the controversy
about this financial product. However, few comments have been made as respect to
Houston, Texas or any other local market for that matter. The issue is that Houston
may constitute an anomaly for a major city. Go to http://www.jamieenterprises.com/
Jim Huger is the president of Jamie Enterprises Real Estate/Mortgage Services. In
his estimation Houston has not witnessed any cessation in home buyer demand over
the last 25 years. To the contrary, demand has been continuous and has increased.
Houston has no state tax, most of its subdivisions feature new or near new
construction, an ever increasing population and possibly the least expensive real
estate of any other major city in America. If one were to compare the cost of
housing in Houston versus Los Angeles, California one would surmise that the LA
market is approxim
ately 2 ¾ times more expensive. The concern is that Houston has a slow appreciation
rate for property. Thus, if a home buyer is to use the IO, caution should be
observed by the buyer. If the buyer is sophisticated, than no problem may occur.
However, if said buyer lacks overall basic knowledge of market conditions than a
problem may occur. An error in judgment in trying to manage a mortgage note whose
payment could escalate while an increase in property value is slow could lead to a
financial disaster. The bottom line that the IO is a viable mortgage product. It
can or may provide a buyer with the ability to qualify for a note whose payment is
seven times greater than one’s gross annual income. This is in contrast to the
guide lines of normal conforming paper which generally accepts two times the gross
annual income as its criteria. However, the buyer should be educated before
attempting to use the IO. Please contact http://www.jamieenterprises.com/ for free
counseling.
2025
