Home Loans

I found the above article to be interesting and scary at the same time. "more than 7.5 million people — almost 15 percent of American homeowners with a mortgage — are spending half of their income or more on housing costs, according to 2007 data released Tuesday by the U.S. Census Bureau." Over half of their income! How do you live?

"The data underscore the serious affordability problems in this country and highlight how the slightest financial problem — from a lost job to higher gas prices or insurance premiums — can put a family behind on their mortgages and into the realm of foreclosure.

When home prices fell in the early 1990s, borrowers had more equity in their homes, and were able to escape foreclosure. But now, an estimated 10 million homeowners owe more on their mortgages than their homes are worth, according to Moody's economy.com." If you are interested in reading the rest of this article, click on the title.