Friday, July 15, 2005

Risky mortgages

Another article in today's New York times about risky mortgages, with a good comparison chart of the longer term costs vs. a traditional 30-year fixed mortgage.
Though I do believe that everyone should be able to own a home and live the American dream and all that, I also don't like the situation these mortgages are creating. If even a dancing monkey can get a mortgage, the additional demand for houses drives up prices for everyone, making it harder for people like me who want to buy a home the good old-fashioned way! Owning a home is a great goal, but I think many people feel entitled to have their cake and eat it too, to run up massive debts to support a lifestyle they think they have to have. Now I don't mean to say that anyone who signs up for a no-interest mortgage is to blame for unraveling the fabric of our society. But maybe we all need to look at our priorities-- didn't people used to say things like "we're saving money for..." a new car, or a vacation, or a down payment?

I heard that somewhere in the Arizona desert, there are acres and acres of land covered with unwanted surplus piggy banks...

1 comment:

shopgal said...

It's such a total different feeling reading this post now after the real estate market tanked the way it did...