> it was not my preference to accept the banks terms. my options were > limited to signing the loan. or not buying a home. i did what the realtor > said because that is the way the system works.
Let me jump in here. You know I've been arguing against John a good deal on this subject, but let me now look at things from another perspective, since I think that the sub-prime mess is not just about deregulation....that other fundamental problems are involved. I'm not sure when you bought your house, but I originally bought mine late in '92, and was able to obtain a beautiful 3000 sq. ft. house in a desirable neighborhood with a mortgage payment of about $850/month. I followed the market, including refinancing, and was always able to borrow 80% of appraised value for <7% interest. The terms were always 30 year, with no balloon payment. I did take a variable rate on my last loan, but that was because I knew I would be selling the house by now. This was all in the Houston area. To my surprise, a couple of years ago my daughter was able, in mid-Virginia, able to obtain a 5% down loan for an interest rate that was, IIRC, in the 6%-7% range, fixed with no balloon payments (I asked before she took the loan). So, I'd be interested in exploring why our experience has been different from yours. I have some possible candidates, but I think this exploration would reveal some of the contributing problems to the present housing situation. Finally, now that we are renting, we are paying for 1300 sq. ft. less than the mortgage our buyers are paying for 3000 sq. ft. It doesn't make financial sense to rent here if you plan on staying put. Dan M. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
