Busy, busy

I've been busy with a number of projects recently, which has eaten up my blogging time. An example of one of these projects is illustrated by the following discussion with a mortgage broker (yes, yes, we're considering becoming home-owners):

Mortgage Broker: So, I have two options for you. $X payment per month, or $Y per months ($800 less than X).

Me: wow. Y sounds good. Why is it less?

MB: Oh, it's just broken out into two different loans, a jumbo, and another one.

Me: Neat. So what's this other one?

MB: It's just another loan. It lets me put together a package cheaper.

Me: Well, money doesn't magically cost less if you just package it in some other loan, right? How exactly does it work?

MB: Well, it's all pretty technical, but it's an interest only loan, basically.

Me: An interest only adjustable rate loan for a substantial sum, adjustable off the lowest rates in the history of man (almost?). Sounds stupid, no?

MB: No, no, it works fine.

Me: Let's see an amortization table.

Mb: (Reluctantly) ok.

Me: (15 minutes later). Soo. It turns out that this number next to "balance" keeps getting bigger on this supposedly innocuous second loan. Doesn't that sound like a massively bad plan to you?

MB: Well, it gets paid off eventually.

Me: {click}