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The Origin of the 20 Percent Downpayment Myth

A favorite mortgage myth of mine is some variation of: You can't buy a home without a 20 percent downpayment. Let's address why this is false, using history as a guide. It all started 50 years ago when real estate information didn't move as freely as it does today. There...

Negatively Amortizing Loans Are Only Evil If You ALLOW Them Be Evil

Negatively amortizing home loans get a lot of bad press. Some of it is deserved; most of it is not. If you've never heard of NegAm loans, maybe you know them by their more popular, "brand" names: Option ARM Pick-a-Payment ARM Deferred Interest Option Loan The basic concept of a...

Three Common Objections To Interest Only Mortgages, Rebutted Point-By-Point

MSN Money recently ran an article stating that interest only loans are bad choices for most borrowers. The headline ran as "Interest-only loans: not magic, usually not smart". Then, the next line: The last interest-only mortgage craze ended with a wave of foreclosures in the Great Depression. Today's interest-only ARMs...