] More than a third of the mortgages written in the
] Washington area this year are a risky new kind of loan
] that lets borrowers pay back only the interest, delaying
] for years repayment of any loan principal. Economists
] warn that the new loans are essentially a gamble that
] home prices will continue to rise at a brisk pace,
] allowing the borrower to either sell the home at a profit
] or refinance before the principal payments come due.

] The loans are attractive because their initial monthly
] payments are tantalizingly low -- about $1,367 a month
] for a $320,000 mortgage, compared with about $1,842 a
] month for a traditional 30-year, fixed-rate loan. If home
] prices fall, though, borrowers could lose big.

All those expensive ass houses everywhere that seem to have cropped up like weeds in the last few years despite the serious lack of an economic boom. Yeah. Those people are fucking doomed. There is a reason you don't own one. You're not an idiot.

Many Buyers Opt for Risky Mortgages