Thursday, March 17, 2016

That has to burn like the surface of the sun.

If you wanna know why people are angry....

Today I finally got up the guts to ask my buddy about his mortgage reset. Mine was in two weeks. So I know when this guy is whole the market is almost recovered.

I was internally psyched for him because I knew he had been paying 7% this whole time. So I figured his reset would cause him to be at market rate. I haven't looked today, but somewhere around 3.62ish range.

The news was very bad indeed.

So - his reset happened in February, but his reset didn't take him into the 3s. He is now locked in at 7%!!! This is 10 years after the recession. Now he's selling his place. His mortgage went up 1800. bucks. Now I have to rethink what might happened with the rest of the group. I think 9% or something.

This guy, I feel bad for him. All he was trying to do was start a new business. He built a new building, so he had to take a loan out on his house. I guess he chose the interest only option, which means he still doesn't have enough equity to be refi'd. Which sucks. It's the riskiest of all loans. But he might, as I did when I took out my reset loan, think - 10 years is a looong time. Anything that goes bad will be better by then. Seriously. You never knew recessions could last this long. Normally they are about three years.

That guy worked his ass off to save that house. We've talked about it many times. Since he's self employed the banks are just harsh. That it why people are fighting mad. Google it@

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