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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (346994)	8/16/2007 8:16:39 AM
From: combjelly	Read Replies (1) \| Respond to of 1574888

"I can understand someone fresh out of school falling for one of these loans but a woman who owns three houses?" It isn't all that uncommon. It is the same reason why people still buy at the peak. The market was going up, why not forever? The old rules have been broken so often, they no longer apply. Then, when the rules apply again... If the market is going up 10% or more a year, and will continue doing that for years, then these types of loans make sense. What the buyers fail to realize is that the market cannot keep doing that forever. At some point, your potential buyers are reduced to those who have just sold a home, and then it becomes those who have just sold a home in your area and then...

To: tejek who wrote (346994)	8/16/2007 9:12:00 AM
From: Road Walker	Read Replies (1) \| Respond to of 1574888

re: I can understand someone fresh out of school falling for one of these loans but a woman who owns three houses? I think people were wanting their cake and eat too. I've had 3 mortgages in my life and the adjustable were always seductive but I've always opted for fixed. The argument for adjustable was "Most people move in five years so you will save money blah blah blah". The problem now is that a lot of these houses have depreciated so they can't refinance to a fixed because they barely qualified for the payments on the adjustable. Now they are F'ed, as are the credit markets.