Quote:
Originally Posted by Deegee
Secondly, having a client roll a bunch of debt into a mortgage over 25 years is crazyness. AFC is 100% correct in his comments regarding how easy it is to bury debt into a mortgage. Its absolutely ridiculous that someone can run up debt, roll it into their mortgage for a minor cost and move on. A consolidation loan may be at higher pricing, but is at least retired in far fewer years than 25, unless bankers and brokers are now doing mortgages with 5 year amortizations on a regular basis. For the record, that's not happening.
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While I agree there are people that completely overextend themselves, it really is case-by-case. There are some people that can responsibly handle higher debt ratios, as they're not spenders, and people can get themselves into requiring consolidations for a variety of different reasons, some of which are out of their control.
Like I said from the beginning, I get what the government is trying to do, but I don't agree with the method.