So Bush has decided to flex his fascist muscles and grant relief to the people that fell into the ARM loan trap. A five year interest freeze on maybe 1.2 million loans could take place next year.
A few years ago, before we bought our current house (on a FIXED 30 year mortgage, mind you), we debated moving out of our apartment and purchasing a condo. We went into a real estate office and they walked us through various loan plans. The loan plan that their in-house financial adviser tried to sell us on was an ARM loan. “Oh, don’t worry, in 5 years you’ll be making a lot more money and will sell your house for a large profit.”
We walked away without a loan and decided to continue renting. It is not the job of the government to rescue people from their irresponible actions. I am amazed that people were surprised when their rates went up. What do you think the word “adjustable” means? Oh, but the loan officer was very persuasive. Yes, he is like a used car salesman. Unfortunately, many were fooled and did not read the fine print.
A few years ago we were not qualified to own a house. When the loan offered resembled a credit card, we realized that it was time to leave and focus on paying off our debts. Through God, our debts were payed off. School loans, car loans, credit cards and personal debts were finished. We then qualified for a better loan that was FIXED.