Yay, Sophia!

And yay for me too, because I finally had an interaction today that didn't end with me wanting to stab the other person, or someone else. Good thing, too, because I'm going out for my friend's birthday, and I would hate to be all stabby.

Because at a guess, the person showing the unrealistic math doesn't give the people who should ask the questions enough time to think of them.

And it's hard to know what the right questions are to ask. Even if you are relatively educated. I mean, I knew enough not to get an ARM but the whole mortgage getting process was pretty confusing and I could have easily been dicked over.

And then there are unexpected events, like losing your job or health issues.

Most of it has to do with adjustable rate mortgages. People are given a super-low initial rate (or even an interest-only loan), and either misled about what the rate will end up being when it's adjusted, or told that when their rates go up, they can just refinance the loan.

Except that when their rates did go up, and they tried to refinance, they found out that they owed more on their mortgage than their homes were worth.

This has happened to a friend of mine, exactly. Although I wouldn't be surprised if she played her own part in the misleading.

okay, Plei, could you please explain what you mean by overlift and lift?

The dye was supposed to be a shade identical to my natural and actual color.

This morning I heard "Coming Dancing" and I forgot how much I adore that song.

I've also read of cases where large fees the buyer had to pay were not disclosed. I'm curious as to what, exactly, but that's all I know....

Except that when their rates did go up, and they tried to refinance, they found out that they owed more on their mortgage than their homes were worth.

The math all does work out, but only if you assume that the value of your home is only going to go up.

Okay, that's what was I missing. Thank you, Tom.

Basically, what Tom said.

Furthermore, sometimes people - like my boss - run into cluases that weren't caught even by his attorney involving pre-payment penalties. On two of our properties, if we refinance before a certain time period has passed, we have to pay a) 1% of the total initial loan b) 100% of the interest that would have accrued if we let the mortgage go to maturity.

The broker that got him the loans has since gone under and can't be found and we're trying to sue him and the original lender. We're also running into a problem where the original lender had another clause that went uncaught that says they can sell the loan to whomever they like and the purchaser is bound by any contract the new lender says so.

It's all crazy.

Baby elephant is ADORABLE. I'd say I want one, but let's be honest, that is crazy. Much better to get a baby giraffe.

Which one? (I may have seen it lately, and could thus give The Skinny.)

This one (hope the link works): [link]

It wouldn't be our first choice of neighborhood by a long shot, but it's a far prettier house than anything within $100K of that price that I've been able to find north of the Ship Canal. Looks like a bit of a fixer-upper, but it has great bones, you know? Assuming relative market stability, the inheritance actually coming through, etc. (i.e. if the good Lord's willing and the creek don't rise), I figure we're choosing between a pretty house somewhere in Columbia City or the less tony parts of West Seattle, or staying in North Seattle or Shoreline but having to make the best of an ugly rambler or ranch house.

ETA this is a good example of what roughly the same amount of $ will get you in my current neighborhood: [link] It would probably be a better choice in any number of ways, but that is NOT a shining example of architectural beauty.

The math all does work out, but only if you assume that the value of your home is only going to go up.

See, hidden fees and uncaught clauses all seem a more...oh, excusable makes it seem like I have any room to judge...well, those are less shortsighted ways to get caught out.

Assuming your house will only ever always increase in worth? Rich isn't that easy, otherwise more people would be.