Originally Posted by
Artkansas
Seems like it could also be that people who have bought more recently also had to buy farther from downtown and got suckered in on low initial rates only to discover that the when the adjustable rates adjusted up, that the costs now exceeded their income.
I can remember the balloon mortgage deal in L.A. in the 1980s when I was first married. People said, "It's the only way to buy a home in L.A.! Get in now, because the prices are only going up, up, up!" Man am I glad I didn't buy, and I'm glad every mortgage I've ever had was fixed rate. Balloon mortgages are for speculators and risk-takers. If you want the stability of owning a home, stay away from balloon mortgages/ARMs.