Quote:
Originally Posted by TheGrimm
I don't get why anyone would want to do a 30/35/40 year mortgage in the first place. If you need to stretch yourself THAT much to get approval or feel comfortable with your monthly payments you should simply be buying a lower cost home or condo etc.
I really don't think this will impact the market a ton, if anything it will hurt the mini mansion buyers with mid-income levels. All these $750-900's 3000 sq foot homes on the edge of the city will be a harder sell. They will be the first to get hit if there is a "correction" anyway.
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I will give you one example why. Person buys a house with his girlfriend before the boom, prices skyrocket, she cheats on him, he ends the relationship, he wants to keep the house and has to buy her out. He amortizes over 35 years which allows him to keep the house, he meets a great girl, gets married has kid, has a 35 amoritization but only has 23 years left on mortgage now. Worked out great for him!