Bach to the Bubble

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The Early Show returned today to its two-part effort to promote the book "The Automatic Millionaire Homeowner: A Powerful Plan to Finish Rich in Real Estate," by David Bach.

Bach didn't say much about the housing bubble, despite teasers to the contrary. However, he did offer some no-duh advice with regard to mortgages:

"Many Americans have mortgages right now and they don't know what is in them," he said. "We have got hundreds of billions of dollars in adjustable rate mortgages. Pull your statement out. Find out 'When is my mortgage coming due? What's the rate going to be? What will it adjust to?' A lot of people, millions, quite frankly, have done interest-only adjustable rate mortgages. When these rates come due in 2007 and 2008, many Americans will see their mortgage payments go up by 50 percent or more."

With that information, Bach recommends that people "call their mortgage adviser and look at what's going on in the mortgage because most people, the most important decision they ever made was to buy their home but they don't really know what their mortgage is right now."

If you feel the need to read more of this drivel, you can find it at The Early Show. But, quite frankly, why bother? If you own a home and didn't know this stuff before tuning in, you'll probably feel more at home at this link.

— The Boy in the Big Housing Bubble