02-19-2009, 03:47 PM
Lux Interior wrote:
[quote=Dakota]
Then there is this clincher. The lenders are supposed to make the payments 31% of owners income. How do you do that?
Income * 0.31 = Payment
What if the payment coming out of this formula can't service the loan? There are no plans to write-down the principal; the only sure way to lower the payments. Interest rate has a marginal impact on someone facing foreclosure.