Columbia Martial Arts Academy
Lifetime Supporting Member
- May 27, 2004
- Reaction score
- Not BC, Not DC
Rhonda is in a panic.
The two-year introductory rate on her adjustable mortgage is about to expire and send her payments soaring. She thought she could refinance to a more-affordable loan, but the rates she's being quoted are just as high.
"So I then decided I would just sell the house and get out of it," Rhonda wrote in an e-mail. "WRONG! The houses in my area are selling for around $20,000 less than what I owe!"
Rising interest rates would put a strain on homeowners with adjustable-rate mortgages in any economy. But the situation is growing critical for millions of borrowers who are "upside-down," owing more on their homes than they're worth.
The new face of sudden onset poverty in America ... from homeowner to homeless.
I know a handful of people suffering from this very situation. Homeownership requires a fair amount of cash cushion - about enough to buy a car in cash outright - to keep the owner in increasing equity by keeping the home in good repair.
Folks ... home ownership is not a game. If you think you can't afford to buy a home, then don't.