No one who actually understands how economics works would take out a zero down, 100% (+), 50-year, 5-1 ARM, 80-10-10, negatively amortized, interest only, etc. mortgage. If you've been taught conservative economic principles, you know those instruments are stupid. Intelligent home buyers also don't take on a payment more than 25% of their income. These are simple concepts which none of our kids learn in schools.
I didn't catch if it's part of this stupid bailout or something proposed by one of the candidates, but someone was talking the other day about renegotiating loans so the payment is no more than a third of income. That sounds like a government idea, since that's what HUD charges. To me that's just preposterous -nobody should be paying a third of their income to purchase a house. That's bad economics.
My 15-year fixed rate mortgage runs 9% of my income. Cars I buy with cash. I don't have a big house or a fancy car, but I sleep well at night.
Of course what's scarier is that if they're negotiating DOWN to 33%, that means people were willingly walking into mortgages higher than that percentage of their income. That's stupid.
If she'd heard him picking her lock, she could have pulled out her Desert Eagle .50 and ventilated him a bit. No dobut about the intruder's identity then.