[lbo-talk] frontiers of financial innovation

[Marta Russell]

>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?
>___________________________________

With all that gobbledygook they are probably making a less informed 
guess than you are.
Marta
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