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08-24-2010, 06:18 PM
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HGTV asleep at the switch
Got a good laugh this weekend.
Was watching this show on HGTV and these self-proclaimed real estate "divas" were trying to show their California client what a great option an interest-only loan is. They actually sounded frustrated that they have to make people see "how the numbers work" for buyers to see that they don't need to wait and jump in now before they miss out. Well, after I cleaned up all the soda off my coffee table and tv screen, it went from being hilariously funny to start making me angry. I know that HGTV spent good money on that episode, but it's probably 2 to 3 years old already. If I was a programming executive, I think I'd retire that one. Hey HGTV! I know most of the shows are boring, but somebody at the network should watch them before we do! 
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08-24-2010, 07:51 PM
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You know that interest only loans are still available today, in every single state?
It's not a laughing matter that each individual needs to learn for themselves what they should or should not do. I didn't see the show, but if the point was to make people realize that they indeed, need to crunch numbers for themselves and realize what the worst-case could happen, then it's a worthy show. Individual personal responsibility. People (unfortunately) are still using these types of loans.
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08-24-2010, 08:12 PM
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No, they were saying that you crunch the numbers to show what a screaming hot good deal the interest only loan is. It's better to buy now because prices are rising faster than you can save. Interest rates will only go up, making it ever more expensive to wait.
I almost just threw up in my mouth. 2007 is calling - they want their mortgages back. Not really - nobody wants them.
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08-24-2010, 08:44 PM
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Makes my stomach hurt just thinking about it.
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08-24-2010, 08:45 PM
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People DO want them. But they are meant for rich people.
The problem is that they are misrepresented and the common people do not realize that one single event can and will be a problem to them. Bottom line: In most cases, if you cannot afford a regular loan, then you will not be able to afford an interest-only loan. These loans originated in the Great Depression times. The rich used them to build new houses and sell them with normal loans. Interest-only loans are really meant for builders; remodelers and people who have the money available but choose not to use it.
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08-25-2010, 10:03 AM
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I can't imagine that this product is still available - especially in California. I've read many stories online that even rich folks can't even get jumbos without 30-40% down.
To me you are rich if you can spend $2 million for a condo in LA.
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08-25-2010, 02:47 PM
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I watched that same episode and thought the same thing.
I wish I got the DIY Network but I refuse to give the cable company another dime. It's just a matter of time before all media is streamed via the net. Then what are they going to do?
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