The Detroit News reports that realtors and mortgage bankers in southeast Michigan report that they're seeing more and more homeowners discovering the dangers of alternative mortgages. With Michigan home prices flat and even declining, homeowners who owe more than the property is worth unable to lower payments by refinancing, and owing money to the bank if they sell. The article provides an excellent overview of the merits of fixed rate loans, adjustable-rate loans and other alternatives.
Also see Mortgage discounts may be scaled back in the Detroit News YIPE!

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