I'm sure everyone has read about the mortgage 'crisis' that is hitting the US, but I take a step back and say 'no kidding!'.
Allow me to explain...
About 3-4 yrs ago I purchased the house I currently live in. Interest rates were so incredibly low, it was great. IF YOU HAD A BRAIN. Low teaser rates were advertised EVERYWHERE - tv, radio, internet, etc. - with these low teaser rates that common sense would tell you could not stay that low. I remember seeing ads for 2%. TWO PERCENT.
Now, anyone with a little common sense SHOULD have thought... wow, great rate, but WHAT'S THE CATCH? Well, the catch, as we all now see is that these rates are skyrocketing on people.
Here's the gotcha - people were taking loans with monthly payments that they could barely afford at the TEASER rate. Now, with everything that is going on in the mortgage biz, people are freaking out.
I bring this up, b/c the local paper here in Cleveland finally ran a story on it. It was FRONT PAGE. Here's the link to the story -
http://blog.cleveland.com/plaindeale...hits_home.html
I just sit here and think... what did you people think? Your rate was going to stay at 2% or 3% for the life of the loan? Give me a break. The paper is trying to play this up like it's the mortgage co's fault, and while they are to blame as well, there is some accountability needed here. If you get a teaser rate, whether it's a credit card or home loan, you need to read the fine print. End of story.
Anyways, looks like there will be some nice home bargains in the Cleveland area soon.
