Reply #15: I do blame the buyers [View All]

It hardly matters how much the broker approved these people for. The couple KNEW how much the house cost right? OK, now that that's out of the way. They also KNEW how much money they actually collect on SSI, right?

Now do the math on a 30 year loan.

Do one with 3% interest.

Your monthly payment for 30 years
for an interest rate of 3.000 %
on a loan amount of $ 265000.00 is:

$ 1117.25 a month

Now do one with 7% interest.

Your monthly payment for 30 years
for an interest rate of 7.000 %
on a loan amount of $ 265000.00 is:

$ 1763.05 a month

Either way they couldn't really afford that house. They are living beyond their means and never should have taken that gamble. I don't care if they were in a hybrid loan or an interest only ARM they should know better.