I've been hearing an awful lot of radio ads for insane mortgages, and I've read that many people are using them to buy homes. Many of these people will not be able to afford the homes they're in if interest rates go up. I expect there to be a lot of foreclosures, and I can't imagine that could happen without a serious drop in housing prices.
"Many of these people will not be able to afford the homes they're in if interest rates go up. I expect there to be a lot of foreclosures,"
A friend of mine has a daughter that works with 20 people and because of adjustable mortgages have lost their homes to forclosure in the last month and his daughter wouldn't take his advise and lock in a fixed mortgage will lose their home within 3 months.
He just told her that being stupid and not heeding his advise, she's on her own and he won't help her.
It's not the money, it's the principal, he has over a million dollars of toys (restored antique cars) and is building a new 2000 sq.ft. garage to keep them in.