Quote:
Originally Posted by Gerco
Frankly, sherm, your talking out of your ass here.
I happen to be one of the people effected by this. I bought a home 2 years ago at 7.1%, The note was immediately sold to another bank, who has now raise the interest to over 12%. My mortgage payment went from 830.00 to over 1500.00 per month.. In the 2 years I have lived here, they have applied 127 dollars toward the principle. As my note stands now, the original amount I financed, 119.000 is now sitting at 124,000 after 2 years of paying. PLUS in the current market my homes value went from 138,000 to around 90,000.
This is why 11 homes currently are in the exact same situation as myself within 1 block of me. WTF are we to do? At the current rate I would spend something like 420,000 dollars on the home I bought for 119,000... What is going on is almost criminal at this point.
So you can take your opinions on this and shove them right up your ass for all I care.
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You think the majority of Americans aren't in this hole? My HELOC is adjustable as well, but I planned for that. I spoke to my lender and asked about both extremes...Right now with the rate cut, I am paying 2% less, but I'm not naive enough to think that it can't swing the other way at any given time. The fix was to Refi at the time when a home had equity into a single mortgage at a fixed rate. Instead, the American Idiots took out Home Equity Loans and dug themselves into deeper holes. I know a lady who took out $150k in an equity loan for random purchases...of course she had to foreclose last month. Go figure. Sadly, many were like her, playing with "free money".
I will pay $460k on my home that I purchased for $325k...But I was well aware of that at the time of purchase. Very little of your principle is paid in the first 15 years of a mortgage. This has always been the case, and is no different now. People just expect the government to pat them on the ass and to tell them it will be ok. The problem is that people are so quick to pass their errors on to anybody other than them, instead of taking responsibility for their own mistakes.
You're not in a unique situation but I apologize that this is taking a toll on you. If it's a huge burden financially to pay the increase in fees, talk to a lender, pull out the cash to pay the refi fees, and lock your rate. LOCK LOCK LOCK. Now is the time.
