I've seen countless articles about people who bought homes under adjustable rate mortgages, and, now that those rates are going up, are finding they can't pay the mortgage.
But I have limited sympathy for these folks.
I've been trying to buy a home for a couple of years now, and I just cannot afford it. I looked at all sorts of mortgages, and it was pretty straightforward -- an adjustable rate mortgage is dangerous -- you borrow hundreds of thousands of dollars without knowing the interest rate from one year to another.
But a lot of people did just that ... they went into something beyond their means and now they see what happens when you do that.
It's not rocket science: What's your income? Is it enough to pay the mortgage with enough left over for added expenses? No? Then you can't afford that house.
So as the homes get lost to the banks or go up for sale by people just looking to not lose their shirts, I may be able to get one at a decent price.