$700 B Bailout

[redsk1]

Originally Posted by mheisig

Exactly.

The pattern for decades has been you may a substantial down payment on a house (20% at least). Generations before us you waited to buy a house and you put a big chunk down. All of a sudden people get greedy, want more house than they can afford, and we end up with shit like 5/1 ARMs and interest-only mortgages. People somehow feel entitled to the house of their dreams at the age of 25 and figure, "Screw down payments, screw paying the principle and all that, this is the NEW generation! We're living the American dream!"

If people weren't so damned greedy and impatient (the lenders and the borrowers) we wouldn't be in this mess.

1) Don't buy more house than you can afford.
2) That means that you can afford the house now AND 5 years from now.

I understand what you're saying but what's wrong w/ a 5/1 Arm?

I think what you mean is Option Interest Only ARMs. Big difference.