Zero-Down, Interest-Only

may 12, 2004

Dan Gillmor has an interesting column in today's San Jose Mercury News about the irresponsible actions of both lenders and buyers who take the risk of zero-down and interest-only loans for buying a house. "Under the best of circumstances, at least some of these borrowers are going to be bitterly sorry. Under less favorable conditions, many more will regret making the bet. Never mind the mess if the overall economic climate truly sours."