Quote:
Originally Posted by strandinthewind
Actually, it's more like the staggering amount of credit card debt in this country  Again, a $50 to $100 increase in a morgage likely will not cause a foreclosure unless other serious problems are there.
Now - are banks loaning money to non-qualified people? Of course they are. But, many of those people are minorities or people who qualify for some program that mandates they be given the money. I am unsure however what percentage that entails. The mtg. lending rules are, however, pretty strict regarding qualification, though they can be played with by a smart buyer.
In that job loss case, it would make no difference what kind of mortgage you had and, quite frankly, the ARM would be better for you if your income dropped because the monthly payment under that ARM likely would not reach the usually much higher fixed rate payment for 7 or so years |
you're missing the point in the "job case" what Im saying is, people think their future is going to resemble today only better somehow, and in many cases, that just isnt true!! I know that in the Bay Area, particularly in the Silicon Valley, people are becoming unemployed at an amazing rate! and they USED to hold fantastic jobs and could afford dream homes! but no more