To: Hydroshock
“Interest rates started to creep up...”
It wasn’t the interest only loan, it was the adjustable mortgage rate that is killing them.
If they got a fixed interest only loan they’d be sitting pretty.
18 posted on
08/21/2007 8:34:37 AM PDT by
Bob J
(Rightalk.com...a conservative alternative to NPR! Check out nat synd "Rightalk with Terri and Lynn")
To: Bob J
Many people get ARMs because of the low payment. What they don't realize is the loan terms reset every so often and the monthly payment goes UP. An ARM may make sense if you're planning on moving in five to seven years. But if this is your lifetime home, you want a fixed, period.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
77 posted on
08/21/2007 9:23:24 AM PDT by
goldstategop
(In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
To: Bob J
...
it was the adjustable mortgage rate that is killing them. Really? Here I was thinking it was their "kid in a candy store," living beyond their means spending mentality. It never occurred to me that math might be to blame.
93 posted on
08/21/2007 9:34:51 AM PDT by
grellis
(Femininists for Fred!)
To: Bob J
He’s sitting on a 5.125% interest rate. It hasn’t adjusted yet and won't until 2010, so the ARM is not killing him. Now, this guy is a WaPo writer, but if he has half a brain, he would use this ARM they way it was intended to be used. He still has time, and it sounds like the means, to do that and it may still be possible to come out ahead in the end.
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