Adjustable Ignorance Rate
I read a great story today about a young man who bought a house but apparently did not know that he had to pay for it. The gentleman said that in 2006, at the height of the housing bubble, he bought a house for $380,000. Two years later the value on his house had dropped by $120,000 and his adjustable rate mortgage adjusted from 5 percent to 9 percent.
Tough break to be sure, but this guy decided it was a ripoff. He said, “I had no idea what I was getting in to. I felt completely scammed.” Scammed? How the heck was he scammed? He was 21 years old and he got a $380,000 mortgage. He took out an adjustable rate mortgage that adjusted. How the heck is that a scam?
The scam is that there are people who continually want to pretend to be victims and have the rest of us pick up the tab. Would this same guy send the rest of us a check if he sold his house for a profit? Now I feel scammed.
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