Mortgages.

When I was looking for a house with Mr. Epi a few years ago, what would be our first and ultimately only house, we had to go through the whole "shopping for a mortgage" thing.

It sucked. Neither one of us were all that experienced with that sort of thing. I even bought a book on it. Because when you need to educate yourself on something, you find people who know more about it than you do, right?

It was put to me in a simple way.

You can have a mortgage where they tell you what your interest rate is up front. It won't change. For thirty years you're going to pay that rate.

OR...

You can get this Adjustable Rate. Your payment will be half as much, maybe even less as that fixed rate mortgage. The requirements for the mortgage are less strict from the fixed rate...

Jesus, what's NOT TO LOVE?

HOWEVER...

The rate can go up. It can go WAY up. In the end you can (and probably will) end up paying MORE per month.

Coming from limited means, we chose to take the guarantee. A 6.25% interest rate for thirty years. We knew what we could afford on what we made. And while we loved the idea of a $400.00 mortgage payment, we hated the idea of what could potentially become a $1600.00 mortgage payment. Based on what we made. Right then. There are no guarantees, you know.

I don't know what ya'll pay. I don't want to know. But keep in mind we were in Ohio. We were buying our first home, and in the working class neighborhood that we were looking in, we bought what we could. A small home, perfect for us. In a quiet neighborhood.

My point.

We were responsible in our choice. That's all I'm saying.

To those who went the other route? My sympathy for you is nil. Nada. Nothing.

Use your fucking brain. Seriously.

9 comments:

asthepumpturns said...

Amen.

Tis all I have to say.

Tony said...

Agreed!

Bernice said...

Exactly.

Erica said...

I couldn't agree more. Been there, done that, did the same thing.

And now, I have the rare privilege of paying, albeit indirectly, for those who didn't make the smart choice. Grrrr.

mshkosh said...

another reason i adore your blog...keep it up!

Greybeard said...

But you realize that is NOT the main reason for our present problems, don't you?
It's indirectly related, but not the total cause.

Our congress, in it's infinite wisdom, went to lending agencies some time ago and said, "it's not fair that certain minorities are excluded from home-ownership. We want home ownership to be within reach of more of these people, so if you want to continue to have access to federal funds, a certain portion of your loans MUST be made to folks who are riskier than those you are presently lending to."
And here's the kicker...
They also promised-
"If you lose money on these loans, we'll guarantee them."

If the government promised you they'd insure all the money you loan out at a decent rate of return, how careful would you be about qualifying those you lent money to?

Republicans and democrats are BOTH AT FAULT.
But democrats have been in charge of the store for the past two years. Are you familiar with the Barney Frank, Herb Morris connection? Check it out.

And remember those facts when you enter the polling booth in November.

Greybeard said...

I misspoke-
Herb Morris was a fellow pilot in Viet Nam.
Herb MOSES is the guy Barney Frank will try to hide for the near future.

Epijunky said...

Greybeard, you and I need to talk... Because I'm still trying to figure this whole mess out.

And I'm failing. Miserably.

Greybeard said...

Pretty good wrap-up on my feelings here Epi. I'm no expert, but it looks as if Bill Clinton was trying to do a good thing for the poor, and screwed us all.