SCARY, NIGHTMARISH INTEREST-ONLY MORTGAGES
More than half, 54 percent, of home purchased with mortgages in DC were interest-only loans in 2005, accroding to Loan-Performance. Only 2 percent of mortgages in 2000 were interest only.
From the WaExam:
"Homebuyers who use the loans to jump into a “hot” housing market risk taking a harder hit if the market
takes a downturn, Harrington warned. In addition, some homebuyers might not be aware that their mortgage payment will go up once they begin to make payments on the principal, Mosi Harrington, executive director of Hyattsvillebased Housing Initiatives Partnership Inc.
"Interest-only loans have been around 20 years, and they were originally developed with the really financially sophisticated in mind, said Mike Fratantoni, a senior economist with the Mortgage Bankers Association."
PIED-A-TERRE SAUVAGE ET FOU
With all the restaurants, bars and entertainment in DC, pied-a-terres are growing in popularity, says the WaPo. Some real estate agents say, suburban sprawl and urban revitalization have made pied-à-terres an increasingly attractive option for workers with long commutes or those who spend part of their week in the nation's capital.