Posted by Eric SEI on April 11, 2008 at 19:41:48 from (72.49.231.73):
In Reply to: OT - Economics posted by Spook on April 11, 2008 at 13:12:21:
Afford which mortgages? A good number of these people could have afforded mortgages on houses that they could afford.
Earlier this week on one of the morning news shows they were talking to a couple in danger of losing their house. They mortgage payment had quadrupled. They had put $500,000 down on a $1,500.000 house, with a mortgage that let them pay just half the interest with the rest being added to the principal. When the loan reached 110% of the original amount full payments had to be made. Their payments went from $2,000 a month to $8,000 a month. She was a real estate agent, she knew what she was doing.
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