been largely impacted by interest rate reductions. As mortgage rates have declined, home prices have dramatically increased, with home prices doubling in the last five years. By far, the majority of the loans originated in the last five years were 30 year fixed rate loans. However, within the last 12 months that has dramatically changed.

And in several real estate markets, as corrections are taking place, the pendulum has

I do not profess to “know” what the real estate market will do in the next year or two, but I would like to share some information with you that might help you in making decisions regarding buying or selling property in today’s market. The following information relates to the types of mortgages that are currently being taken out by those who are currently purchasing or refinancing homes.

Statistical surveys of the mortgage market shows that the percentage of adjustable rate mortgages comprised over 60% of the loans obtained in the last fiscal quarter. Even though the traditional 30 year mortgage is still very low in terms of historical comparison, buyers and homeowners that are currently buying or refinancing are electing to go with the adjustable rate almost two thirds of the time. Does that mean that they expect interest rates to go down even more, or is it because they can no longer afford the fixed interest rate, and believe that obtaining the adjustable rate is better than not buying or refinancing at all?

What exactly are the these types of mortgages consumers are obtaining? According to the National Association of Realtors brochure, [Help Your Client Avoid Predatory Loans] "...Specialty mortgages often begin with a low introductory interest rate or payment plan—a “teaser”—but the monthly mortgage payments are likely to increase a lot in the future. Some are“low documentation” mortgages that come with easier standards for qualifying, but also higher interest rates or higher fees. Some lenders will lend you 100% or more of the home’s value, but these mortgages also present a big financial risk if the value of the house goes down."

The real estate values in the previous five years have been largely impacted by interest rate reductions. As mortgage rates have declined, home prices have dramatically increased, with home prices doubling in the last five years. By far, the majority of the loans originated in the last five years were 30 year fixed rate loans. However, within the last 12 months that has dramatically changed.

And in several real estate markets, as corrections are taking place, the pendulum has

arket shows that the percentage of adjustable rate mortgages comprised over 60% of the loans obtained in the last fiscal quarter. Even though the traditional 30 year mortgage is still very low in terms of historical comparison, buyers and homeowners that are currently buying or refinancing are electing to go with the adjustable rate almost two thirds of the time. Does that mean that they expect interest rates to go down even more, or is it because they can no longer afford the fixed interest rate, and believe that obtaining the adjustable rate is better than not buying or refinancing at all?

What exactly are the these types of mortgages consumers are obtaining? According to the National Association of Realtors brochure, [Help Your Client Avoid Predatory Loans] "...Specialty mortgages often begin with a low introductory interest rate or payment plan—a “teaser”—but the monthly mortgage payments are likely to increase a lot in the future. Some are“low documentation” mortgages that come with easier standards for qualifying, but also higher interest rates or higher fees. Some lenders will lend you 100% or more of the home’s value, but these mortgages also present a big financial risk if the value of the house goes down."

The real estate values in the previous five years have been largely impacted by interest rate reductions. As mortgage rates have declined, home prices have dramatically increased, with home prices doubling in the last five years. By far, the majority of the loans originated in the last five years were 30 year fixed rate loans. However, within the last 12 months that has dramatically changed.

And in several real estate markets, as corrections are taking place, the pendulum has

, or is it because they can no longer afford the fixed interest rate, and believe that obtaining the adjustable rate is better than not buying or refinancing at all?

What exactly are the these types of mortgages consumers are obtaining? According to the National Association of Realtors brochure, [Help Your Client Avoid Predatory Loans] "...Specialty mortgages often begin with a low introductory interest rate or payment plan—a “teaser”—but the monthly mortgage payments are likely to increase a lot in the future. Some are“low documentation” mortgages that come with easier standards for qualifying, but also higher interest rates or higher fees. Some lenders will lend you 100% or more of the home’s value, but these mortgages also present a big financial risk if the value of the house goes down."

The real estate values in the previous five years have been largely impacted by interest rate reductions. As mortgage rates have declined, home prices have dramatically increased, with home prices doubling in the last five years. By far, the majority of the loans originated in the last five years were 30 year fixed rate loans. However, within the last 12 months that has dramatically changed.

And in several real estate markets, as corrections are taking place, the pendulum has

a “teaser”—but the monthly mortgage payments are likely to increase a lot in the future. Some are“low documentation” mortgages that come with easier standards for qualifying, but also higher interest rates or higher fees. Some lenders will lend you 100% or more of the home’s value, but these mortgages also present a big financial risk if the value of the house goes down."

The real estate values in the previous five years have been largely impacted by interest rate reductions. As mortgage rates have declined, home prices have dramatically increased, with home prices doubling in the last five years. By far, the majority of the loans originated in the last five years were 30 year fixed rate loans. However, within the last 12 months that has dramatically changed.

And in several real estate markets, as corrections are taking place, the pendulum has

been largely impacted by interest rate reductions. As mortgage rates have declined, home prices have dramatically increased, with home prices doubling in the last five years. By far, the majority of the loans originated in the last five years were 30 year fixed rate loans. However, within the last 12 months that has dramatically changed.

And in several real estate markets, as corrections are taking place, the pendulum has swung the other way and many markets experienced a 17% rise in foreclosures in the third quarter of 2006 according to a report from RealtyTrac.