The Nightmare Mortgage

September 8, 2006 (FinancialWire) (By Frank Kollar)

As home prices fall, there are a large number of borrowers out there who not only are worrying about the value of their homes, but also about paying off rapidly rising monthly payments caused by a new and extremely dangerous mortgage called the Option Adjustable Rate Mortgage (ARMs).

Option mortgages offer unrealistically low payments that add monthly-unpaid interest onto the principle of the mortgage. A ticking time bomb. Fully 12.5% of all mortgages nationwide were of this type in the first half of 2006 according to FirstAmerican LoanPerformance. Typically huge prepayment penalties make them impossible to get out of.

These loans are being pushed by deceptive brokers onto unsuspecting buyers who will never be able to pay them off. Beware, the bomb is ticking and will explode during the next recession.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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