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  1. #1
    Registered User Senior Member

    The game is rigged against you

    I was at a talk today given by a mortgage broker. And I was quite disturbed.

    Apparantly, minimum credit scores for conventional, FHA and VA loans were all lowered to 630. And you can still get a loan with credit scores between 580 and 629 - though at higher rates.

    Of course, if you have a credit score only a little above 630, you will still be paying higher rates, PMI and insurance costs than homeowners with good and excellent credit scores.

    On top of that, you can take out a mortgage with as little as 3% down.

    So, basically, they are setting you up to get into deep debt.

  2. The game is rigged against you
  3. #2
    Registered User Junior Member
    With really low rates, and lower payments, I think there is much less risk. Plus, everyone learned the lessons from 2007. This is just fear mongering.

  4. #3
    Registered User Enthusiast
    I disagree. Talk about lessons not learned. It seems like the imperative is putting you in a house. Regardless of how tenuous that makes your economic existence.

  5. #4
    Registered User Semi Pro Member
    I don't know about other people, but I have used these low rates to shed debt. Not as an opportunity to be more leveraged.

    Simplify. Simplify. Simplify.

  6. #5
    Registered User Senior Member
    What happens when interest rates rise just a little? How many people have floating rate debt for credit cards and student loans? And what about home equity lines?

    It's like we are on the brink of disaster, and one small nudge will topple the whole house of cards.

    Debt is an evil burden. So seductive. But so costly.

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