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Making sense of the mortgage system collapse
#20
I would like to say that I don't feel too much sympathy for the people who took out $500K mortgages with such limited income.

I think that what is necessary is some COMMON SENSE, and that seems to be lacking in this day and age.

When we purchased out home in 2000, we were approved for a similar amount, I think it was $300k-$400k. We looked at each other and said "your kidding", because we knew from, umm, common sense that it was impossible for us to pay for a $400k house. Did we jump at the chance to buy nice, expensive house? No! Would we like such a house? Of course! But, we bought a house that was within our means (OK, may a smidgeon more than we should have) Are we suffering now and asking for a bailout? No.

Same with the ARM. Maybe I'm weird, but I would think it doesn't take a rocket scientist to figure out that if something is at 5% (as the rates were then), there isn't much room for them to go lower. If something doesn't go lower, it will go up. And anybody who grew up int the 70's would know what interest rates were like then - 16-19%. ARM's weren't offered in such a public fashion back then, now were they?
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Re: Making sense of the mortgage system collapse - by Sam3 - 05-13-2008, 02:43 AM

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