Quote:
Originally Posted by strandinthewind
Good Lord woman - do you ever read anything? Read the ARM disclosure pages in that cite above. It is not not fine print -- it is a sep. fukning page specifically setting out in detail and in regular size print the results of an ARM. What do want, the lender to tatoo it on the closing agent's ass and have them moon the buyer prior to signing 
Also, may companies such as ditech do not use pre payment penalties and they are illegal in many states. Are they fair - well, that depends on who asks the question. Most are one to two years. If you were the finance company and you structured your income model on each loan lasting 5 or more years, then yes they are. if you are the consumer, you hate them, but still want the loan at a cheaper rate, which is caused by the income plan. Interestingly, almost all contracts you sign have these a la cell phones plans. But, they are going away and loans will cost more as a result.
Better yet, let's let everyone who cannot pay for their house just keep it until they get a job allowing them to pay for it at their leisure -- or, the fed.'s could pay the P&I while the consumer is unemployed - more welfare, why not and this time not based on financial need - just that you lost your job 
Where did this come from???
Again and finally, if you are stupid enough to buy a house you cannot afford at the time of purchase, you have no one to thank but yourself. |
I think ARM's are evil. The way housing prices have climbed, the mortgage behemoth sensed a killing and boy did they. I have yet to meet anyone who actually puts the money they save from an ARM onto the principal of the house. as I said, most people pay bills, take a vacation, buy a car, get braces for the kids etc. And if your job is in a certain place you are behooved to buy a HOME there too. so you are stuck with the housing prices in your job area
What a crappy attitude you have Jason, very um, well....."elitist" comes to mind.....
I would NEVER go for an ARM. NEVER. I told my broker I could afford X amount to pay for a mortgage and no more. He worked with me and I found something I could afford. I know what I have to pay for the next 25 years. I got lucky tho, I found the last decent affordable house in my area. its the commute to work that kills me. I pay two-thirds as much for gas as I do for my house. Thats just crazy.