Comments on: More Signs We Are Not Ready

By: Cerulean Sanctum » The Best of Cerulean Sanctum 2005

Cerulean Sanctum » The Best of Cerulean Sanctum 2005 — Sat, 06 May 2006 20:08:09 +0000

[...] Ford, GM, and the Church and More Signs We Are Not Ready ask whether the Church in America is ready to go through difficult times, and if not, why not? [...]

By: Julana

Julana — Tue, 16 Aug 2005 16:05:00 +0000

Yes, I couldn’t understand it when developers started offering it as an option around here. Evidently, people hope the current rate of appreciation will continue, and they’ll build equity without paying principle.
The recent levels of appreciation are just not sustainable.

I’m not surprised a few naive people will take out an IO loan. I am surprised at 30%. This spells trouble.

(This issue is a sad one for me. I have a relative in the San Francisco area, who would love to have a house for his family, and doesn’t expect to ever be able to afford it.)

By: Dan Edelen

Dan Edelen — Mon, 15 Aug 2005 17:07:00 +0000

Julana,

“Interest-only loan” = “Renting”

Let’s just be honest here. Plus, you build no home equity. And with more and more Americans effectively mortgaging their homes through a home equity loan, how is this possible if you are running an interest-only loan? The answer? It’s not.

By: Julana

Julana — Mon, 15 Aug 2005 16:30:00 +0000

Did I just hear on the radio that 30% of the home loans in CA are now interest-only? Isn’t home equity what many depend heavily on for their retirement?

By: Dan Edelen

Dan Edelen — Thu, 11 Aug 2005 06:55:00 +0000

Brad,

The issue is the speed at which it is happening. Our infrastructure is not prepared for that kind of upheaval. If the Church is the means of grace of God for this world, then we better well be prepared.

Dave C.,
Read my business series for a better understanding of where I’m coming from and why these issues are important.