http://www.california-home-mortgage-rates.com/n67.html A bad credit home loan might be able to get you into that California home, but you're going to have to risk a lot to make that bad credit home loan work for you. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 You want that California home? you have bad credit? Well, get ready to work. Because abad credit home loangiven today's housing market means taking a significant amount of risks. Add to that the promise of increasing interest rates and you might just be looking at one of the most dangeroushome loanopportunities of all time. Are you ready for that? The new risk of a bad credit home loan There is no more promise of home appreciation when you take out that bad credit home loan and get into a home, and there is the promise of increasing interest rates. Sell your home before the rates adjust? Good luck - home prices are so high that people just aren't that excited about buying California homes anymore. We knew it would happen, just not so suddenly, and not to the degree that we are seeing today. So lets say you apply for that bad credit home loan regardless of the risks and you move into your California home. What can you expect? Increasing rates. A bad credit home loan will have adjustable rates, meaning in a few years your initial rates will be replaced by something significantly higher. Add to that any principal payment adjustments for any interest-only term and you're looking at a drastic increase in monthly payments - in some instances over 100%! Decreasing home values. We never thought we'd say it with California, but today's home owners have to face the very real prospect of dropping home prices. Cities all up and down California are on the list for the most inflated housing costs, making today's California home loan not quite a suckers bet, but something surprisingly close. Regret. Why did you choose to risk it all with a bad credit home loan when only a few months before you could have gotten that fixed rate loan at the same rates - at least you would have known what to expect from your monthly payments! Go ahead and take your chances with that bad credit home loan - just don't say California Home MOrtgage Rates didn't tell you so. Sat, 26 Jul 2008 15:00:00 EDT