[Bring_Back_Shantz]

Originally Posted by Mike Oxlong

Not everyone who got into a 35 year amortization were over extending themselves. Lots of people get the longer amortizations because it allowed them to get into the housing market affordably. Once circumstances in their lives change (perhaps they get a promotion and raise, they get married and have dual income, maybe the wife goes back to work after being on maternity leave etc....) They have more income and can handle higher payments and are able to pay the mortgage down faster. They can even renew their mortgage at 20 or 25 year after starting with a 35 year term. Just because people start with a 35 year amortization doesn't mean it will take them 35 years to pay it.

And it really isn't the people who took 35 year amortizations that got us in this mess. It's the people that take on huge consumer debt like credit cards with crazy interst rates and those that continue to refinance their mortgage to use all of their home's equity. That is the household debt the government should be worried about.

Not saying I disagree with moving the amortization periods from 35 to 30 years but that is a very small issue.

I agree 100%, but you can't deny that the flood of people who were now buying houses because they could "afford" 35 year mortgages with 0 down was also a big part of the problem.

I'm not saying this specifically about PP06 as I don't know the guy, but to me it seems like the kind of people who complain that they're getting "screwed" by this change are probably more likely to have that sense of entitlement that casued a lot of this mess to begin with.