The Rise In Interest Only Loans

Article by Parke Chapman Via National Real Estate Investor

For those sniffing out possible troubles ahead for commercial real estate, add this one: The huge growth in interest-only (IO) loans over the past three years. As of January 1, 55.8% of all fixed-rate conduit loans featured IO periods—up from 5.9% at the beginning of 2002. And 35.6% of these loans are IO for the full term, according to an analysis by Moody’s Investors Service.

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