What happens to the Economy when the rest of the Interest Only Loans Come DUE ?

The question

We are only in year 2 of foreclosures due to the Democrats passing laws stating that anyone could buy a home with an adjustable rate without doing a back ground check of affordability.

In 2010, 2011 & 2012 MORE homes are going to hit the FORECLOSURE Market as there 5 year loan will end. No bank will refinance them as the rules were set back prior to the Dem’s Changing them.
Meaning, you have to financially qualify to get the loan.

Question: What has Obama and his Handing out done to head off this Problem?

If you didn’t get which Party caused this recession doesn’t the fact that the Dem’s changed the Policy prior to them allowing anyone to get a loan make a light bulb go off?!?
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otwist : It seems I am paying attention to what is going on thank you.

Do you mean to tell me you listen to :

ABC, NBC,CBS, CNN, MSNBC, Olberman, Matthews…. etc…?

I am sure you are up on what is going on…. right.
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The Housing Collasp caused this recession along with the high cost of Gas/Oil and GAS/OIL are going UP and more loans will be cancelled up through 2012.

WE are not out of the WOODS yet, WE have yet to enter the WOODS.
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Liberal AssKicker : And Bush along with Other Republicans tried to get the Congress to stop those loans and the Dem’s wouldn’t vote on it.

Remember the POTUS can’t pass the LAW to fix that. It starts in the Congress.

OIL: Pelosi went on vacation refussing a vote to come to the floor for more drilling and to place an end to Oil Speculation which drove up the price of oil.

Currently a CEO at Citibank is going to make Hundreds of Millions of Dollars in a bonus for SPECULATING.

Those 2 things ruined our Economy and Bush needed the Dem’s in the Congress to PASS Bills to stop it and they wouldn’t.

8 years of Dems ruining our Country for Campaign Donations did it.

The question

How should I determine how to structure my mortgage?
Here’s the deal: I have a few options to structure my mortgage- buy price is $ 240k, 4% interest
I can place 5% down, and have payments of $ 2050/mo -mortgage insurance would be $ 180 of that (apr would be 5.32%) $ 22555 to close
I can place 10% down and have payments of $ 1843/month. Mortgage insurance would be $ 89 of that (apr would be 4.542 ) $ 32636 needed to close.
I can place 10% down and roll the in mortgage insurance and have payments of $ 1778/month (apr of 4.24%) $ 32xxx needed to close
Or..
I can place 10% down, roll in about $ 7k in closing costs, and have a payment of $ 1900/month (4.6%apr) $ 26166 needed to close

Question is, which option is the best? I have about $ 50k liquid right now. I do have other debts with higher interest rates than 4% that I could start to pay off f if I go with the lower cash to close. I owe $ 17000 at 8%, that has the next yearly interest payment due on Jan 1 for $ 1360. Should I finance as much as possible on the house so I can throw some money at the $ 17000 debt? I plot right now on paying that interest payment to cover me for 2012 and getting a home equity loan (on a different, rental property that I own) at a much better rate to pay the $ 17000 @8% off.

If I go 5% down my mortgage payment will be higher than I’d like, but I would have more cash.
If I go 10% down it will be the opposite
If I go 10% and finance the m.i. – this is what I am leaning towards (and waiting a year to pay off/refi my 8% loan) I will feel too close on cash.

I know it costs money to borrow money, so should I borrow as much as I can at 4% to pay off 8%?

I know it’s complicated, any help or advice would be appreciated!!!!!!