[lbo-talk] frontiers of financial innovation

[Doug Henwood]

I love this phrase I just read in a letter to Business Week: 
"negative amortization variable-interest mortages with low teaser 
rates." I'm guessing that this means that in the early stages, your 
monthly payment doesn't even cover the interest, so the difference 
gets tacked on to the principal - and, should market interest rates 
rise, so will your mortgage payment. What are people thinking when 
they sign up for these things?