The mortgage oasis mirage is real.
Posted on August 31, 2007
A few weeks ago we saw an obscure reference in a blog about a new mortgage type/home equity loan that actually allowed homeowners to borrow money against the *future appreciation* of their home. At the time it seemed too wild to be true. Since we didn’t find anymore confirming evidence of it we let it go.
Then today we see Herb Greenberg’s post about the Fed chairman actually suggesting the mortgage industry get more innovative with options including what he described as a "shared appreciation" provision.
As unbelievable as it sounds it’s now apparently a fact that the Fed may be willing to go to great lengths to soften the blow from a correcting real estate market. By pushing rates low enough and encouraging mortgages that basically push the issue again into the future we may not enjoy the level of bargains many of us anticipate.
The U.S. credit industry is indeed an amazing creature!
Tags: Finance, Mortgages, Real Estate
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