> >>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?
I am not 100% sure what all that verbiage means, but if I've interpreted it right, this is what I would call a "two-year discount tracker" absolutely the standard pricing structure for UK mortgages.
If you think this one is irresponsible, wait until Australian structures hit your market - anyone fancy a credit card that puts your transactions straight on the mortgage, cobbers?
autre pays, autre mores
best,
dd
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