Quote:
Originally Posted by irishgrl
Paula, that article nicely explains what has been happening in the world of creative financing. Yes the buyers are partly to blame, but they optimistically think they will be getting raises or that the interest rate wont be THAT high...
Sorry Jason, as that article points out, I DO think the mortgage industry is to blame. They got greedy and they were going to make their commissions, regardless of whether or not down the line the borrower would go under, and that seems heartless to me. I personally wouldnt EVER go for an adjustable rate mortgate, much better to know what you have to pay each month from now till its paid off....but thats just me.
Macfan4ever, your article underscores what I said earlier about Big Oil being the real culprits here. Its just disgusting, and it should be stopped.
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Whatever, you hate the concept of individual responsibility. If you buy a house and think you will be able to afford it in the future, you have no one to blame for yourself
I mean here is a cite with sample disclosure statements
https://www.everbankwholesale.com/Fo...sclosures.asp#
They are very clear cut and if the buyer does not read them, how is that anyone's fault but their own.
Finally, even if the ARM rises after the first five years and even if the idiot buyer did not know it would, they have still saved gobs of money and will continue to do so for severalk years over a fixed rate loan because the raise in the rate on a typical ARM is capped per year.
Note - if someone loses their job, that is a horrible thing and I fell sorry for them. But, to blame their subsequent inability to pay the mortgage on the lender is ridiculous in that everyone can lose their job --- so no mortgages should be made
Of course not -- the mtg companies go with the information they are given and the reasonable expectation of stability in employment. I mean the mtg. company wants to make money on the loan.