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Again, The Washington Post is RIGHT on this issue:

"A variant, called option adjustable-rate mortgages, allows borrowers to decide how much they wish to pay each month and whether they want to pay down the principal. The risk in interest-only and option ARMs, however, is that at a future point, the loan payments are recalibrated to make up for payments not made during the early phases of the loan -- and could double in a single month."

"These loans also pose the risk that people could end up in homes with higher mortgage balances than when they were bought."

I can easily see this happening. They can't pay the interest on the INTEREST ONLY loans once they GO UP. I can easily see in a former "hot" market they paid MORE than they should and then coupled with HIGH interest rates, bail out and OWE MORE than the HOUSE IS VALUED.

I see prices going down in New Jersey and this is NOT a cheap state in property/land and the HIGHEST in the nation for taxes. More and more "reduced" or "new price" is becoming more common in you better neighborhoods.

"Some may not like the truth you post through reputable newspapers (even if they are left leaning). Even right leaning papers are saying the SAME things. My best guess is that they are sweating it out with THEIR interest ONLY loans on houses they can't afford and don't want it rubbed in their faces. If you looked under their chairs ... I'd bet you'd see HUGE brown spots as they sweat it out."

Sorry, but you're late on the draw. We don't have a problem with Ex-Texan posting articles at all - that is what the forum is for. The problem is that he posts a link to his own blog every single time he posts.

And for the record, I own multiple properties all with 30-YEAR FIXED MORTGAGES. No worries here at all.