Did NOW's segment on "interest only" mortgages

[serryjw]

remind you of the Enron greed. Did we not learn "if it's too good to be true.....". This Young couple would comfortably afford a $200K house and buys a $900K house! This reminds me what experts say about investing in jewelry or art.......It's value is WHAT someone is willing to pay for it. How much MORE can it go up before NOBODY cab afford it?

[ZombieNixon]

1. Shoot, who NEEDS a $900K house?!

Is the "middle class" average now a six-figure salary?

[serryjw]

4. For year 'middle class' has ben defined

as $50-----$125K for a family of 4. They had $100K income so depending on other debts they could get you a $300K house in CA which is NOT much.....BUT a $900K is totally Bushit

[Akoto]

7. Indeed!

We have been looking to move to upstate New York, and we've seen some fantastic 3-4 bed/2 bath houses in the $115,000-$150,000 range. I can't imagine spending $900,000 on a house.

[ComerPerro]

8. upstate New York, you say?

Hmm... interesting...

[alarimer]

2. Real estate agents have a vested interests in talking them

into more expensive houses because then they will get paid more. But do the owners even think about how much higher the taxes are on a $900 K home compared to a $200K? That one agent they interviewed said if they quality that means they can make the payments. I don't think that is necessarily true. I rent but if I decided to buy I wouldn't spend more than 25-30% of my take home on housing. I doubt I could find anything that cheap which is why I still rent. I also think interest-only loand need to be outlawed. It is just a way to sucker in people who really can't afford it. Oh but home ownership is the American dream, right??? Not for me it isn't.

[serryjw]

5. I agree

NOT everyone should buy. I live in D/T Denver where a 1000 sq ft condo is $250K. I am single and can live in a nice 1 bedroom for $600/monthly. Even if I could afford it WHY be so house poor?

[Swede]

3. This is a legalised scam it seems

Say you pay on your mortage for ten years,you still would not have paid the principal. Nice. Nice for the banks.

[serryjw]

6. This makes sense only

if you KNOW that your income will go up substantially in the next 5 years being in sales or self employed. If you are a salary emplyee (regardless of income) this is a HUGE gamble. What message are you sending your kids by living above your means?