blake murphy wrote:
> On Fri, 01 Aug 2008 22:29:49 -0400, Goomba wrote:
>
>> sf wrote:
>>
>>>> And do you want to pretend they don't have any responsibility here?
>>> So, you're blaming the fish for being caught with a very good lure?
>>>
>> Yup. They hold as much blame as anyone else here. It took two to tango, eh?
>
> the lenders don't have any resposibility to point out potential pitfalls of
> a variable rate, or even explain it adequately?
>
> your pal,
> blake

Mine always did, and lord knows we always had to sign a gazillion
documents stating we understood risks and responsibities. Even way back
in the 80s. We basically had one on the second home we owned, but at the
time it was called a "builder's buy down" because he paid the difference
in interest on our behalf and our interest rate was scheduled to rise a
total of 2 more times after the initial sale rate. We actually
refinanced after the first rate hike because set rates were reasonable.
I don't know if ARMs were new then but there was always consumer
education available as to who shouldn't get one (people who couldn't
risk the increase or tolerate the unknown) and whom they might work well
for (someone who knew they were not going to be in the house for long,
or someone whose income was assured of going up).