This morning I was listening to the radio and they were discussing the sub-prime meltdown. The guy called in and said "My payments went from $500 to $700 over a year and if it would have stayed at $500 my wife and I would have been able to afford it!"
Now here are my questions and observations. Does a $200 a month increase really make that huge of a difference? AND if the answer is yes to that than why in the heck would one sign up for an adjustable rate mortgage? I think instead of the government bailing these people out, someone should teach them what "adjustable rate" means. I bet that caller has cable. Probably has internet and I bet he and his wife have cel phones. I'm just speculating though. Are those necessities nowadays?
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