The WSJ wrote about interest-only loans today.

They mentioned two banks/agencies offering these loans to the general public, although I suspect there are many more:

• US Bank - 8% of their loans are interest only.
• Quicken Loans - “Smart 30″ loans

I can’t help but think that interest-only loans will weaken the already dismal US savings rate. Then again, the market favors wealth building, not wealth destruction. If these loans were too risky economically, the interest rates on these loans would increase to match the risk of default.

Does anyone know of Eugene banks or lenders offering these kinds of loans? If so, how accessable are they? Are they really designed around first time home buyers?

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