4 ms·
The morgage payments don't change with the house price though, right? People couldn't afford to pay their morgage because they got more house than they could af
by GhostVII 8y ago
The morgage payments don't change with the house price though, right? People couldn't afford to pay their morgage because they got more house than they could afford initially.
But yeah being stuck in the same house because it lost value wouldn't be good.
- twblalock 8y ago> People couldn't afford to pay their morgage because they got more house than they could afford initially. Or they lost their jobs because of the recession.
- derekp7 8y agoNot just that, but they got talked into 5-year balloon mortgages, where they would be forced to refinance after 5 years (the upside being that they got lower monthly payments than a 30-year fixed). Well, 5 years later rates have gone up to where they can't afford the new payments, so end up losing the house.