Here's a revolutionary concept. (interview w/ mortgage co.)

[mike2]

"Each household needs to budget and analyze what they truly can afford based on current and realistic income expectations and look at tax benefits, etc. They can no longer buy and expect yearly equity withdrawals to support payments beyond their means."

And apparently a hybrid option arm is the way to go:

"We have seen an abrupt drop in demand for the option ARM, but a strong increase in the hybrid option ARM (a fixed rate for five years at 3% below the actual note rate) which gives you low payments, stability and tangible deferred interest. "

Is it just me, or is deferring interest basically the same as using equity to pay interest? Except of course that you're using equity that hasn't accrued yet with the hybrid option ARM.

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