Originally Posted by sherm

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.