Clay Kime

Why There's No Such Thing As a Housing Bubble

Thomas:

I'm sorry Alex convined you that there was or is some conflict of interest. This is just a report, not a recommendation to buy, sell, stay, wait, rent, or do something or do nothing.

I have no idea in what region you are, but your reasoning is sound and I hope it works affirmatively for you.

We also recommend lenders from time to time. But, we always recommend "direct lenders" for precisely the reasons you outlined. With loan origination and underwriting done under the same roof, their stricter and supervised lending guidelines should well protect you as they protect their institution. While there are rational uses of ARMs, interest only and other derivitave products, I agree with you that this is a sector of products that has been abused for longer term financing requirements. If one knows that they are going to move in 4-5 years, a 5-year ARM may be a good choice. I think interest only loans are terrible for the buyer from just about every angle.

Regards,

Clay