Jumbo, interest-only mortgage borrowers are in for monthly sticker shock when their principle comes due.During the peak of the housing boom, from 2004-07, interest-only mortgages gave some buyers access to bigger or better homes than they likely could have afforded with a traditional principal-and-interest monthly payment.The interest-only mortgage was meant for borrowers who had variable cash flow, such as independent contractors or salespeople who got large year-end bonuses. The loans attracted people who expected their income to rise over time, allowing them to handle principal payments later.But a product meant for a select few was oversold, says Mark Livingstone, president of Cornerstone First Financial, a mortgage broker in Washington, D.C. Borrowers in high-price markets who had steady incomes and could afford a principal-and-interest payment instead opted for interest-only loans. Many borrowers who put down less than 20% with these loans were told that the rising real-estate prices would cover their lack of equity.An estimated $934 billion in jumbo interest-only mortgages of all types were sold during the peak years of the housing boom, averaging about $234 billion a year, according to Inside Mortgage Finance, a research group that publishes data on the mortgage industry. By comparison, just $55 billion in jumbo interest-only products were originated in 2002, and $140 billion in 2003, Inside Mortgage Finance says. (Jumbo loans exceed $417,000 in most markets, and $625,500 in high-price markets such as San Francisco and New York.)Interest-only mortgages come in various forms, including five-year and seven-year initial periods, but the 10-year type, followed by a reset, was popular when the housing market was hot. Now with those loans starting to enter the principal-payment period, borrowers face a dilemma: They can refinance or take their chances on a new, possibly higher, payment. When the payment resets, the principal typically must be paid back over the remaining 20-year life of the loan, instead of over 30 years, says Mr. Livingstone.County Properties, 26 years of brokerage experience, trust.We offer free counseling in real estate regarding; home values and information on options of selling vs. Foreclosure.To get started on viewing homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO's) or thinking of selling your property, please contact me today for free counseling at (619) 540-5811.New Pro-Property Search. We will setup a customized search for you by our professional REALTOR® Team. Sit back relax and shop at home! We will make changes to your Pro-Property Search any time you like, just let us know. Have fun!By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net/ and I’ll be happy to follow up and take great care of them.[iframe http://realestatelistings.1parkplace.com/47042/Sandicor/search 780 2100]For Luxury homes[iframe http://realestatelistings.1parkplace.com/47042/Sandicor/Search?viewMode=gallery 780 2100]