KAIMIPONO D. WENGER at Concurring Opinions:
Question one: If a buyer has a weak credit history and a low-paying job, should he take out a hybrid mortgage — with a low teaser rate for the first two years — in order to buy a house that he couldn’t otherwise afford?
Question two: Assuming that a simple calculation will show that in two years, the monthly payment on this new mortgage will jump to a level the owner can’t actually pay … should the owner then spend what little leftover money he has to add new features (a new deck) to the house?
No, he shouldn’t.
In other breaking news, it’s apparently a bad idea to stick a knife into a plug socket.
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