2 Jul 2024 5:15 pm
As @ROG62 pointed out, this is more a function of a bad choice made by seemingly smart people. They qualified for a $1.1 million mortgage in 2016 which is not an easy feat. I looked up the average mortgage rate in 2016, 3.6-3.7%. The article said her interest rate was 3.15% for the initial term, the mortgage company raised it 2%, the max they can raise in one year. The cap was 8.15%. No doubt she will get hit again next year as I believe rates will not go down very fast over the coming year. ( This couple will survive I imagine, that house in Houston should be worth a pretty penny now)Zeets2 » 02 Jul 2024, 11:17 am » wrote: ↑ No argument regarding their stupidity, but the example given of an ARM are going to cause a massive number of homeowners who will be unable to pay the new rate, even if renegotiating to a new fixed rate, which is now at 7% or higher, forcing them into bankruptcy or selling their home at a loss?
Democrats thought Biden's inflation was all **** and giggles up until it smacks them upside their empty heads!
How many of those homeowners who got crushed by this were Biden voters?
And how many of them do you think will be voting for Trump this time around?
If half a point makes the difference in qualifying for a mortgage then in my opinion, you can't afford the house.
Inflation has hit 80% of the population pretty hard, if people want more of the same, Biden is their guy.