We did a million-dollar loan for one gentleman who got four round trip tickets on that loan.
Clearly these loans aren't for everyone. Unless you've been disciplined about saving the difference you're setting yourself up for sticker shock at the end of five years.
From a fixed-income point of view, which I'm looking at, it's a little bit disappointing. We have seen the bottom on longer-term rates; everybody is assuming this may be the end of this party.
There seems to be a sense of urgency, especially among first-time buyers. We're seeing people in their 20s and 30s who have the 'I need to buy a home now' attitude.
We've seen a dramatic pickup in these loans since rates starting going up.
[With the report now out, rates could come up even more.] Most lenders will increase rates by a quarter to three-eighths of a percent today, ... Remember, rates move up of a lot faster than they come down.
[Few people will argue that consumers haven't benefited from these changes.] Keep in mind that 20 years ago you couldn't buy a house unless you had a 20 percent down payment, ... You had three choices of loans, adjustable, 15-year or 30-year.
The lending industry is doing what it can to get a piece of the shrinking pie. You're going to see more aggressive offers in the coming year.
People who calculated what they could afford when rates were 5.25 percent have realized their mortgage payments are going to be a lot higher now that rates have gone up, so they're going for interest-only loans.
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