Originally Posted by
Col Forbin
I just don't understand how all of this lending was allowed. Thankfully, I took advantage of it. I got my first house in 2001 using a Fannie Mae loan. I had no down payment, and could barely afford the closing costs. The only thing making me feel comfortable about the situation, is being a competent special ed teacher means I have one of the most secure jobs in America. I did do the smart thing, and build up some quick equity and savings and refinanced in a year to a better loan, lower rates, and no PMI. I stuck with an ARM knowing I would be moving within 5 years (luckily I did just before the market slowed to a snails pace). I also took out a line of credit when I refinanced. Yet another problem for our economy- the extreme ease of a line of credit. The good thing is I bought a boat with my line of credit, paid some debts. Then sold the house and still made, paid off the line of credit, and made a 20% proffit after that, which I used to buy a house with my wife down here by Ky lake. I did all of this, except the final purchase on a single income, a teachers income at that. So to make a long story short - Did I intentionally make the right moves - no. I was extremely lucky in the decisions I made, I didn't have a clue what I was doing. So I can see first hand, how this whole mortgage situation was entirely out of control. Everything I did could have gone wrong, thankfully it didn't. But it was way too easy - and I can see how a great deal of people dug a hole to deep to climb out of.