Minor Axis
Well-Known Member
Newsweek: Whose Fault Is This?
Is this an example of adults making bad choices/being greedy? Is it an example of Mortgage Brokers being greedy? Or is it a combination of the two?
I'd say it is a combination of the two, however I qualify that statement by asking how many home buyers are mortgage experts? What happens when you have slick professionals telling you this is the best deal ever and that if interest rates go up, you can simply refinance? Turns out in many/most cases that was not true.
I just watched a story on CNN where a $50,000 a year library was told to not worry about the price of the home, priced at $500k, that she could afford it no problem. Well, again as an adult I'd say you have a responsibility to know how much your house payments are and how much they *could* go up based on the interest rates. However if you are led to believe that you can refinance when the rate goes up, when really you can't, then that is outright fraud. All those troubled mortgages that were started, they were sold and the people who pushed them, made their money. Now the country is in a mess. This is why you need to have rules, regulations, and government over sight.
Is this an example of adults making bad choices/being greedy? Is it an example of Mortgage Brokers being greedy? Or is it a combination of the two?
I'd say it is a combination of the two, however I qualify that statement by asking how many home buyers are mortgage experts? What happens when you have slick professionals telling you this is the best deal ever and that if interest rates go up, you can simply refinance? Turns out in many/most cases that was not true.
I just watched a story on CNN where a $50,000 a year library was told to not worry about the price of the home, priced at $500k, that she could afford it no problem. Well, again as an adult I'd say you have a responsibility to know how much your house payments are and how much they *could* go up based on the interest rates. However if you are led to believe that you can refinance when the rate goes up, when really you can't, then that is outright fraud. All those troubled mortgages that were started, they were sold and the people who pushed them, made their money. Now the country is in a mess. This is why you need to have rules, regulations, and government over sight.