[stephenjohnbanker]

"In the Philbrooks' case, John and Karen borrowed almost the entirety of the $244,000 cost of their modest North Highlands home: One loan was written for $195,000 at 6.375-percent interest; another financed the remainder of nearly $45,000 at 9.125 percent. The rate on the small loan was fixed. But on the large loan, the rate was fixed for only two years, and after that it was variable"

There will be a TRILLION dollars in keys mailed back to the mortgage companies. And the fed will bail many out.

[Petronski]

...on the large loan, the rate was fixed for only two years, and after that it was variable...

And yet both borrowers and breathless "journalist" cast this as some huge surprise.

The reality is that the borrowers were supplied with a Note and Truth-in-Lending which outlined (a) how the rate could adjust, (b) when it would first adjust, and (c) how to calculate the adjustments.

In short, the "journalist" is sexing-up the drama to sell papers, and the borrowers are quite dull indeed.

[investigateworld]

-------------------------------------------------------------------------------- To: churchillbuff "In the Philbrooks' case, John and Karen borrowed almost the entirety of the $244,000 cost of their modest North Highlands home: One loan was written for $195,000 at 6.375-percent interest; another financed the remainder of nearly $45,000 at 9.125 percent. The rate on the small loan was fixed. But on the large loan, the rate was fixed for only two years, and after that it was variable"

stephenjohnbanker wrote: "There will be a TRILLION dollars in keys mailed back to the mortgage companies. And the fed will bail many out.

13 posted on Friday, September 22, 2006 8:56:35 PM by stephenjohnbanker (Our troops will send all of the worlds terrorists to hell in a handbasket with no virgins!) [ Post Reply | Private Reply | To 1 | View Replies | Report Abuse]

A thousand internet points for your foresight ;^)