They must have gone with a really predatory lender? I have an ARM, but it actually adjusted in the direction of being cheaper recently - just because rates are so good, and it's tied to some common index for interest rates.
The housing thing makes me irate. Out in CA the prices were/are insane. It's a wonder anyone could afford anything. My cousin paid over $500k for a tiny 3 bedroom ranch, no basement. I can see why those people took out crazy loans because there was no way to afford a decent house otherwise. It doesn't mean it was right though. I still think the blame is on the mortgage lenders.. and possibly the government for not intervening. I hear all this talk of needing smaller government, but I don't understand why government supervision and prevention is looked down upon while we are now using the government to clean up the mess made earlier. I don't trust For-Profit companies to do the right thing and regulate themselves. I realize there are guidelines so we don't OVER regulate, but some of what I read that the previous administration took away as far as regs for this lending... it's no wonder we are where we are
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There are a lot of things that I do not understand about the bail out. A person came into my office seeking mortgage assistance. $9,000 worth of assistance. After going through the usual questions, I found out that the person was only making $10 per hour, at a job that was not stable, and got a loan for a $225,000 home. How does that happen?? It is situations such as this person, I am assuming, that is the reason for the bail out. I just feel uncomfortable giving someone money, when they knew that they could not financially afford a house -- especially with only a seasonal job. All in all, it is confusing.
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