You caught that, too. It doesn't make any sense. But then why anyone would get a mortgage longer than 15 years doesn't make any sense either. They'd have been free and clear for 5 years. Even a 20 year mortgage would have been paid off. Why not have a paying yard sale? Did they previously? It doesn't sound like it or they'd know that people show up before dawn. By 10 AM the good stuff is already gone. I'm curious what they did to try to save their house.
We got a 30 year loan, and doubled the principle for about seven years.
Went that way just in case the economy went belly up, our payments would be easier to make.
Apparently we made the right choice.
(Its amazing how fast the principle gets paid down by doubling it each month.)
Millions of people have cashed out the equity in their homes. They thought that home values would always incease and since interest rates are low, why not?
Why not get that home equity loan?
Then the lay-offs came and the bills came and so on and so on.