Re: How much can I afford to pay in rent?
So you dont think the possiblity of someone's mortgage doubling is not a good reason for cautioning someone against an ARM? The fact is, home buyers tend to overextend themselves. Just look at how much lenders are willing to give borrowers and you can see why this is the case. If someone is overextended on day 1 of a mortgage, what happens 1 year down the road when Mr McMansion owner doesnt get that correspnding raise in income to cover the cost of that nice, new, increased mortgage payment?
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