Here’s a scenario: Person A puts money away from every paycheck, check by check, accumulating monies until the day comes to put that surrender that money as a reasonable down payment on $300k home. Person B talks about saving money, inherits a little bit of money and tries to capitalize on a high risk loan, with very little money down for a $400k home. Flash forward – person B can’t make mortgage payments, facing foreclosure and their local Congressman sees this as an opportunity to cash in, pushing a law that forgives debt. But what about Person A, the hard working, common sense American who was smart enough to realize they could only afford a $300k home? He has to pay a higher rate to cover Person B. That sounds fair, right?
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Top Photo: robert.steinhoefel via Flickr
