Quote:
Originally Posted by AVGWarhawk
Truth be told Mookie, in 1989 I got a home loan on my first home. I had to fork over $13,000. I was provided a loan that was called ARM. A stupid adjustable rate loan. As you said, Nuremburg, young and dumb. I signed not really fully understanding the loan terms. Within 12 months the loan "adjusted" to a higher interest rate and mortgage went up a additional $175.00/month. I learned quickly/the hardway and refinanced to a conventional loan even quicker. For me, I was in a position to do that. For the others, not so much and the bubble bursts. As far as home equity, God love my mother, she always said you cannot live off your home equity. Do not refinance repeatedly looking to pay off bills. People did just that, refinanced several times. Or, some got second mortgages!
|
Yup. They put a lot of pressure on us to offer every single person who came across our desk a loan of some sort. Refi this, refi that. I feel like in some small way I contributed to the whole crisis.
In most places, you'd get paid more for selling an ARM. That's probably why your loan officer got you to do that. The old "screw your customer" routine.