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The sky is falling! The sky is falling! — Mortgage Version

June 16, 2008

OMG. Have you heard about the rates of mortgage foreclosures in the US? Foreclosures are up 50% or 100% or 200% depending on your source. Even at 50%, that’s huge. Right? The economy must be collapsing.

Or not.

The foreclosure rate is now 0.2%. Make sure that you pay attention to that little decimal point between the 0 and the 2. Yep. Two-tenths of one percent. And mortgage rates are up as well! Over 6%. OMG! Whatever will we do. Scott Ott has more.

I have a suggestion for people. Don’t buy houses with zero down mortgages amortized over 40 years with annual payments at the very upper limit of what you can afford.

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