News of the obvious, in the paper of record
posted by Kaimipono D. Wenger
Question one: If a buyer has a weak credit history and a low-paying job, should he take out a hybrid mortgage — with a low teaser rate for the first two years — in order to buy a house that he couldn’t otherwise afford?
Question two: Assuming that a simple calculation will show that in two years, the monthly payment on this new mortgage will jump to a level the owner can’t actually pay . . . should the owner then spend what little leftover money he has to add new features (a new deck) to the house?
In other breaking news, it’s apparently a bad idea to stick a knife into a plug socket.
March 17, 2007 at 3:05 am
Posted in: Current Events
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Responses (2)
David Bernstein - March 17, 2007 at 10:26 am
Not to mention the new garage. But why not? Real estae only goes up.
Matt Bodie - March 17, 2007 at 4:49 pm
Sure, it’s fun to pile on to the guy who’s losing his house to foreclosure. But perhaps you also might want to mention that he lost his job and is now making 30% less than he used to.
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