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  1. #41  
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    Quote Originally Posted by lacarnut View Post
    Many millions of people took out sub prime mortgages that should have never been allowed to purchase a home because of their finances. You think people should be allowed to purchase a house with teaser rates of 1 or 2 per cent or interest only payments for 3 or 5 years. I say bullshit on that.
    I would have loved it if we could have gotten a 1-2% interest rate on our mortgage for 5 years. Because after 5 years, we would have either moved or refinanced our mortgage.

    Of course, with interest rates at about 6.5% these days (30 year), it is likely that rates will be much higher 5 years down the road. And the 5-year ARM option is currently at about 7%. We were fine (although not happy about it, considering rates were <6% a few weeks ago) getting locked in at 6 3/8.

    But we weren't subprime borrowers, because we made good decisions with our money, paid off credit cards monthly, and never had late payments.
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  2. #42  
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    Many people went out and put a second mortgage on a home that they just purchased a few years ago. When prices started to fall, their equity evaporated leaving them upside down on their original loan. Between the lenders and borrowers stupidity, we are in this housing mess now.
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  3. #43  
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    Quote Originally Posted by lacarnut View Post
    Many people went out and put a second mortgage on a home that they just purchased a few years ago. When prices started to fall, their equity evaporated leaving them upside down on their original loan. Between the lenders and borrowers stupidity, we are in this housing mess now.
    A lot of the fault should also be laid at the feet of Congress. They mandated banks to provide mortgages to subprime borrowers. Then the subprime borrowers couldn't meet the terms that the lenders required to make a profit. Result is a huge mess that Congress helped create, and is now using as a basis to extend federal power.

    As for people taking out a second mortgage, those people took on a debt that they knew they were expected to repay. The value of their house was irrelevant to the payments. If they couldn't afford the payments, they shouldn't have taken out the loan. If they could afford the payments, then the fact that their home is worth less than the loan is irrelevant.

    Home prices only matter when you try to sell.
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  4. #44  
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    Quote Originally Posted by biccat View Post
    I would have loved it if we could have gotten a 1-2% interest rate on our mortgage for 5 years. Because after 5 years, we would have either moved or refinanced our mortgage.

    Of course, with interest rates at about 6.5% these days (30 year), it is likely that rates will be much higher 5 years down the road. And the 5-year ARM option is currently at about 7%. We were fine (although not happy about it, considering rates were <6% a few weeks ago) getting locked in at 6 3/8.

    But we weren't subprime borrowers, because we made good decisions with our money, paid off credit cards monthly, and never had late payments.
    Saaaay, we don't cotton to no financially responsible varmints around these parts. :D
    Better to die on your feet than live on your knees.
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  5. #45  
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    Quote Originally Posted by biccat View Post
    A lot of the fault should also be laid at the feet of Congress. They mandated banks to provide mortgages to subprime borrowers. Then the subprime borrowers couldn't meet the terms that the lenders required to make a profit. Result is a huge mess that Congress helped create, and is now using as a basis to extend federal power.

    As for people taking out a second mortgage, those people took on a debt that they knew they were expected to repay. The value of their house was irrelevant to the payments. If they couldn't afford the payments, they shouldn't have taken out the loan. If they could afford the payments, then the fact that their home is worth less than the loan is irrelevant.

    Home prices only matter when you try to sell.
    Gimmie an AMEN.
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  6. #46  
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    Quote Originally Posted by AlmostThere View Post
    Saaaay, we don't cotton to no financially responsible varmints around these parts. :D
    Its disappointing to know that Congress is encouraging people to live irresponsibly and carry tons of credit card debt while skipping out on valid debts. If my wife and I had bought a house last year instead of living economically and saving our income, we would be eligible for a bailout from the feds. Instead, because we saved up and waited until we could afford a house, we are going to be stuck paying for some other jerk to get a free home.

    I suppose I'll have to get over the fact that Congress is punishing success and rewarding irresponsible behavior (as usual).
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  7. #47  
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    Quote Originally Posted by biccat View Post
    Instead, because we saved up and waited until we could afford a house, we are going to be stuck paying for some other jerk to get a free home.
    How do you think I feel? My husband and I have actually been meeting our OWN mortgage obligations for the past eighteen years! :mad:
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  8. #48  
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    Quote Originally Posted by Cold Warrior View Post
    And the lines will get longer and longer as more people are only able to afford the crap they sell at WalMart.
    There's a silver lining here. Look at the upside. While more and more Americans are relegated to the check-out lines, think of all the good we'll be doing for the economy of our good friend, China.

    [IMG][/IMG]
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  9. #49  
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    Quote Originally Posted by biccat View Post
    Its disappointing to know that Congress is encouraging people to live irresponsibly and carry tons of credit card debt while skipping out on valid debts. If my wife and I had bought a house last year instead of living economically and saving our income, we would be eligible for a bailout from the feds. Instead, because we saved up and waited until we could afford a house, we are going to be stuck paying for some other jerk to get a free home.

    I suppose I'll have to get over the fact that Congress is punishing success and rewarding irresponsible behavior (as usual).
    Quote Originally Posted by linda22003 View Post
    How do you think I feel? My husband and I have actually been meeting our OWN mortgage obligations for the past eighteen years! :mad:
    Ladies and Gentleman,

    It sucks! But both you guys are leaving out 2 important factors.

    1) YOU BOTH PLAYED BY THE RULES.

    2) YOU BOTH CAN LOOK AT YOURSELVES IN THE MIRROR WITHOUT HAVING A NEED TO TAKE A SHOWER AFTERWARDS.

    There is an upside. Damn expensive, but an upside.
    Better to die on your feet than live on your knees.
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  10. #50  
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    #2 is true of all the other people, too. Shame isn't a big driver there.
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