From the article:
We pay taxes in the highest bracket.
For 2006 married filing jointly, that is at least $336,550 of taxable income. If the house was "only" $459,275, they should be able to pay it pretty easily. Their interest only payments at 5.125% (until they adjust upwards) would be less than $2,000 per month.
If they are having any problems at all it is because they can't handle money.
That was my thought too. If they’re making 300 grand a year, a $400kish mortgage even at 10% interest shouldn’t be too bad.
Of course, I don’t know if both of them have $900 Hummer payments, and what their dogwalker charges them...etc...etc...
Dave Ramsey would eat these people alive.....