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Was the Mortgage a Mistake? (Homeowner just now figures out they are in a hole)
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/18/AR2007081800089.html?referrer=digg ^ | 8-19-07 | Michael S. Rosenwald

Posted on 08/21/2007 8:18:53 AM PDT by Hydroshock

click here to read article


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To: Phantom Lord

Ha - you might be surprised to find what the neighborhood kid charges.

The kid made $80 a week for 2.5 hours of “work”. I know adults who don’t make that much an hour. :)


121 posted on 08/21/2007 11:18:26 AM PDT by cinives (On some planets what I do is considered normal.)
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To: cinives

Yes, but I suspect that a pro walker in Mont. Co. is charging more than that. And likely taking 15 dogs at a time out.


122 posted on 08/21/2007 11:19:48 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: USMCWife6869

Well, yeah — courses in fiscal responsibility would take time away from those gay/lesbian islamic eskimo studies classes.


123 posted on 08/21/2007 11:33:18 AM PDT by Malacoda (A day without a pi$$ed-off muslim is like a day without sunshine.)
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To: Hydroshock

bump for later ranting


124 posted on 08/21/2007 11:40:52 AM PDT by lesser_satan (Fred Thompson '08)
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To: Phantom Lord

Seems kinda comparable, and we don’t live in suburban DC or anywhere near a very high rent district:

http://capitalpetsitters.com/md_rates.html


125 posted on 08/21/2007 11:41:51 AM PDT by cinives (On some planets what I do is considered normal.)
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To: Hydroshock

“But that wasn’t really on our minds two years ago. For us, and I suppose others who signed such deals, the lower payments afforded by an interest-only loan helped us buy a house in an expensive county — Montgomery — where we wanted to live and eventually send our children to school.”

By then I’m sure that their plans were to hire a child walker to escort them.


126 posted on 08/21/2007 11:57:43 AM PDT by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: RockinRight
460k IS a “small starter home” nowadays in MontCo.

it could very well be that they were not ready to purchase a $460,000 starter home... if they weren't, then i don't see how he can say they "deserved" one...

127 posted on 08/21/2007 1:20:43 PM PDT by latina4dubya
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To: Hydroshock
Where I live, the housing market had been red-hot to white-hot for years. There was a large plot near me, with graders and bulldozers busily readying the plot for a hundred and some new homes.

A few weeks ago, everything stopped...it's dead quiet over there. All the graders and dozers are gone. They made a nice, big, level dirt patch, though.

128 posted on 08/21/2007 1:21:29 PM PDT by FlyVet
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To: FlyVet

Someone lost their financing I suspect.


129 posted on 08/21/2007 1:27:13 PM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock
It must suck to be as stupid as Michael Rosenwald!

Whatever happened to SHAME?? This man should be ASHAMED of his stupid decisions......eegads.

130 posted on 08/21/2007 1:33:05 PM PDT by Suzy Quzy
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To: USMCWife6869

He thinks the SCHOOL should teach this stuff??/ It is taught in the HOME....wonder if his PArents are as stupid as he is?


131 posted on 08/21/2007 1:35:24 PM PDT by Suzy Quzy
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To: 3Lean

LOL!!!! HOW TRUE!!!!! Best comment of the day!


132 posted on 08/21/2007 1:37:47 PM PDT by Suzy Quzy
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To: Hydroshock

No inspection also....what an IDIOT couple! And she’s a PHYSICIAN? An inspection would be called a second opinion.


133 posted on 08/21/2007 1:39:09 PM PDT by Suzy Quzy
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To: this is my name not yours

I’ve been raising a large family.
You know what?
I “deserve” a trip to Italy for relaxation.

Do they have interest only adjustable rate loans for that sort of thing?


134 posted on 08/21/2007 9:03:31 PM PDT by Scotswife
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To: DaltonNC

Let me explain it to you. It comes from the capital structure theory called the “pecking order” theory of Myers and Majluf (1984) and Myers (1984). The idea is that financial flexibility gives you options to take care of investment opportunities. If I take out an interest-only loan, I still can make the same payments and replicate the results of a fixed-rate mortgage, but am not obligated to do so. If an investment opportunity arises, or if I simply have a cash flow shortage, I can make the interest-only payment and not default on my loan. If, instead, I had a fully amortizing loan, I lose the option to pay interest only and will lose my house if I can’t pay the difference in the interest-only loan and the fully amortizing loan.


135 posted on 08/21/2007 10:45:51 PM PDT by rebel_yell2 (iI)
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To: Hydroshock
This guy is such a dolt! He writes that

"Interest-only loans typically mean that buyers lock into a low interest rate -- about 5.125 in our case -- for the first three or five years, without paying principal, before the loan balloons into a 30-year, fixed-rate mortgage tied to current interest rate indexes."

Well, FIXED-RATE mortgages are NOT tied to curren interest rate indices; Adjustable rate mortages are. If this guys is this ignorant of the mortage market, he should get one of the guys that write for the business section to clue him in.

But the money quote is

"we deserved a nice home."

What an arrogant self-absorbed ass.

136 posted on 08/21/2007 11:01:28 PM PDT by rebel_yell2 (iI)
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To: latina4dubya
it could very well be that they were not ready to purchase a $460,000 starter home...

They are not having a problem making payments. They didn't buy more than they can afford. They are worried about what the interest rate will be in three years when their current note resets.

137 posted on 08/21/2007 11:34:27 PM PDT by Doe Eyes
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To: Hydroshock
Success in life is about postponing luxuries, many luxuries, until you are on solid grown with a safety net that can carry you and your family for five years, plus airtight medical, health and life insurance policies. First things first.

Too many Americans it seems, sad to say, are thinking primarily about the recreational 4-wheel drive or Winnebago, a big screen, and vacations in Cancun, to really be smart, wise, and yes, even Biblical when it comes to attitudes and strategy toward money. They are not the only people on the globe to have this attitude.

The other shoe has not fully dropped yet, IMHO.

Many people will only have themselves to blame.

138 posted on 08/21/2007 11:39:48 PM PDT by AmericanInTokyo (Visit this thread 1-hour from now. In that time, an average of 416.6 more ILLEGALS will be in the US)
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To: babble-on
Uncle Sam? Can I borrow some money? We’re a little short this month.

Said the crooks that loaned them the money, that didn't have the professional ethics to ask them for credit information, income or anything else.

Of course, those same small time crooks that made them the loan, for the loan commission $$, have now all been laid off by the fat cats that pushed this entire scheme in the first place.

139 posted on 08/21/2007 11:46:42 PM PDT by dragnet2
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To: Moonman62
hate to tell these idiots but many of us including my husband and myself were happy to be paying 10% interest not all that long ago....okay, maybe like 18yrs ago.....when we got a 7% interest rate on our new house, we felt rich, rich, rich.....

and, I just love the poor me doctor/lawyer whine stories.....

140 posted on 08/21/2007 11:48:20 PM PDT by cherry
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