Now look at these idiots. Forclosures surging and people making late payments. I saved for my home for 17 years and then in 2003 put a huge downpayment and got a fixed rate @ 5.25 %...IT CANT MOVE from that rate. Unbelievable how many stupid people out there! Yeah, go ahead and blame the lenders but it is not their fault.
2007-03-13 07:52:47 · 7 answers · asked by Anonymous in News & Events ➔ Current Events
Do you know how much it sucks to continually pay rent? These people aren't idiots. They made honest mistakes. They wanted a piece of "the American dream," which seemed attainable because of the interest rates at the time. Yes, they lacked the knowledge they needed to make wise decisions, but now they've learned from their mistakes.
I don't see anyone blaming lenders, by the way.
They don't need you kicking them while they're down or acting like you've never made a mistake in your life.
2007-03-13 07:57:34 · answer #1 · answered by Anonymous · 0⤊ 1⤋
I bought my house with a 5/1 ARM with an initial rate of 4.25% in 2004. It will be 4.25% until 2009. Why didn't I go with a fixed rate?
I expected to pay off the mortgage before 2009 by:
1.) Selling the house before 2009. OR
2.) Paying off the balance in a lump sum just before the rate changes. (I earn enough.)
I have a savings account at the same bank as my mortgage paying me 4.6%.
Most people sell their house within 5 years anyway, so getting an ARM makes sense.
As for people trapped with a mortgage that they cannot afford, many people just aren't fiscally responsible.
2007-03-13 15:01:52 · answer #2 · answered by Vegan 7 · 0⤊ 1⤋
to me, an ARM has always seemed like a gamble. They're betting that either they'll be making enough money to afford the higher payments, or they're betting that interest rates won't change much. And just like any gamble, you're taking a risk. And it sucks for them now that it's come time to settle up. I feel bad for them; they're losing everything they have.
2007-03-13 15:01:00 · answer #3 · answered by a heart so big 6 · 0⤊ 1⤋
Yes, I know lots of people like that and they are usually in over their heads in nice homes and they brag and look down on me from their beautiful palace but I know that soon they will be in the streets like the bums they are. Most can't afford to put up curtains.
2007-03-13 15:02:21 · answer #4 · answered by jacquie 6 · 1⤊ 1⤋
maybe they're only planning on keeping the house a few years--if so, it's cheaper to get an adjustable rate. They're not stupid.
2007-03-13 14:59:50 · answer #5 · answered by David G 2 · 1⤊ 1⤋
once this market collapses, and it will even your 2003 house will not be worth a damn.
2007-03-13 22:09:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋
some people have to lose to the man in order to make the man, "the man". its not there fault but rather there time. everyone will lose to him at least once in there life time!
2007-03-13 15:02:42 · answer #7 · answered by dizzle 1 · 0⤊ 2⤋