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Loan Statistics

AlanAlan
edited March 2007 in Seattle Real Estate
Rhonda Porter posted data she gathered from her mortgage business. Great, hard, local, real data.

I'm too tired to think about how this reflects against out bubble theories, so I am asking what you guys think about it.

It may not be your business...but it is all mine!

Comments

  • AlanAlan
    A quote from one of the comments:
    The majority of clients, including myself, that opted for an Option ARM program were typically higher level clients that fully understood the terms of the option (negative amortization, recasting of the loan, etc) and the loans were used more for optimizing cash flow on rental properties in the first years of purchase while rents were on the upswing. Given that prices on smaller rental properties (2-4 units) around here were appreciating quickly while rents stagnated for several years it was the only way to make any of these purchases close to cash flowing. Rents are now on the up-swing since vacancy rates in the area are below 5% (around 4.4%) so that is a good thing for landlords.

    Option ARMs are subsidizing our rents!
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