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Interest-Only Loans Soar
Wall Street Journal ^ | August 24, 2005

Posted on 08/24/2005 7:47:32 AM PDT by blessu

According to a recent report from ratings agency Moody's Investors Service Inc., 65% of the U.S. commercial loans that it rated in the second quarter were interest-only for part or all of the loan's term. Such loans require borrowers to pay back only the interest during part or all of the length of the loan term.

Two years ago, interest-only loans made up just 7% of the overall market.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy
KEYWORDS: bubble; commercial; realestate

1 posted on 08/24/2005 7:47:34 AM PDT by blessu
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To: blessu

I drive past about 5 HUGE empty buildings off route 495 on my way to the train station every day. When these buildings were full of people working for DEC/Compaq/HP, my house was valued at half what it is today.

Very very odd.


2 posted on 08/24/2005 7:52:49 AM PDT by Spike Spiegel
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To: blessu

Yes, the Fed has also noted that commercial vacancy rates are pretty high already.


3 posted on 08/24/2005 9:46:52 AM PDT by snowsislander
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To: blessu

BFLR = Bump for later reading.


4 posted on 08/24/2005 5:33:03 PM PDT by Kevin OMalley (No, not Freeper#95235, Freeper #1165: Charter member, What Was My Login Club.)
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