Why You Should Hate the Treasury Bailout Proposal

efil4stnias said

ha on the lines...I heard that one too. And I heard " look you already are looking for your next home just after 3 years of owning your first. The average ownership is approx 6 years and then you "move up" to a bigger home. If we do a 5/1 ARM, you save on your note, afford a bigger home, then sell at a premium in 3-5 years and move into a bigger home. How bout it?"

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They couldn't afford it in the first place. They made the decision not the lender. Everything about every loan is in writing. If one signs papers they do not read and accepts the word of a salesman over common sense then they deserve what they get. You used common sense and are not in trouble. But, if you can afford a 30 year rate on your house, it wouldn't have mattered what loan you got because you could just refinance out of an ARM and into a 30 yr. fixed when you wanted to.