Saturday, December 15, 2007
The subprime mortgage problem explained
Iowahawk gets to the heart of the subprime mortgage debacle:
When I opened the mail on November 1, everthing started to go downhill. For some reason my house payment had gone up by $700 per month! There was no way I was going to squeeze that onto my plastic. I thought that maybe it was some sort of fat-crazy-chick revenge thing from Linda, so when I called First Coralville to complain I asked to talk to her supervisor. "No, it's not a mistake," says the guy. "You have an adjustable rate mortgage, and it adjusted."
"Ex-squeeze-me?"
"Adjustable rate mortgage, A-R-M," he says. "After the first 6 months, it adjusts up to the prevailing interest rate. You should have realized that, because it's all there in your contract."
Who am I, fucking Oliver Wendell Smallprint? I thought ARM meant "always ready money." I told the dude there's no way I could pay.
Heh.
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