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When we financed our new home in November of 2006 I insisted on an 80% loan 30 year fixed rate. The bankers thought I was insane & kept trying to talk me into a 125% ARM. All the 125% ARM mortgages are what's causing the mortgage crisis. People get in way over their heads in houses they can not afford to find out years down the road when they can't afford their payments anymore that they can't even sell their house because they still owe more then the house is worth, so they default on their loans. The day I signed my house loan, I had $50,000 in equity. Those poor people who sign 125% ARM's won't have that in 10 years! Mortgage interest rates are very low right now & I can't understand why anyone would sign an 125% ARM. History states rates WILL go up!

If you can't afford it - don't buy it!

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