Interest-only Mortgages
With the cost of housing and the upward creep of interest rates, interest-only mortgages have become a popular way to make home purchases "affordable." Before making such loans to an individual, consider the risks and benefits to that customer. Not only are the risks fairly high that the value of the property may not increase or may actually decrease, the customer really isn't buying anything. Their interest payments are not much different from paying rent.
Copyright © 2006 Compliance Action. Originally appeared in Compliance Action, Vol. 10, No. 16, 1/06
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