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The Watercooler
WaMu - this is getting scarey.
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<blockquote data-quote="slsh" data-source="post: 198015" data-attributes="member: 8"><p>FDIC seized WaMu yesterday then sold it to JP Morgan. Investors in WaMu I believe get nothing but people with accounts are fine. Sounds like WaMu's practice of offering adjustable rate mortgages, including some with deferred interest, is what really did them in and that started blowing up on them several months ago.</p><p> </p><p>I read one article that pointed out that actually this was comparatively a positive event because JPMorgan just saved the FDIC from dipping into its insurance fund.</p><p> </p><p>Maybe it's because I'm a negative Nellie, but I've never understood the attraction of ARMs. There's no such thing as 100% job security, much less an assurance that one would be making more $$ in future years to cover the increase in mortgage. I'd be an absolute wreck worrying about how to cover the mortgage as it increased. I understand that this is the only way some folks can get into a home right *now* but it just would seem to be safer to hold off on buying until one could afford a downpayment and qualify for a fixed rate loan. But... that's just me, the worry wart. <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite2" alt=";)" title="Wink ;)" loading="lazy" data-shortname=";)" /></p></blockquote><p></p>
[QUOTE="slsh, post: 198015, member: 8"] FDIC seized WaMu yesterday then sold it to JP Morgan. Investors in WaMu I believe get nothing but people with accounts are fine. Sounds like WaMu's practice of offering adjustable rate mortgages, including some with deferred interest, is what really did them in and that started blowing up on them several months ago. I read one article that pointed out that actually this was comparatively a positive event because JPMorgan just saved the FDIC from dipping into its insurance fund. Maybe it's because I'm a negative Nellie, but I've never understood the attraction of ARMs. There's no such thing as 100% job security, much less an assurance that one would be making more $$ in future years to cover the increase in mortgage. I'd be an absolute wreck worrying about how to cover the mortgage as it increased. I understand that this is the only way some folks can get into a home right *now* but it just would seem to be safer to hold off on buying until one could afford a downpayment and qualify for a fixed rate loan. But... that's just me, the worry wart. ;) [/QUOTE]
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WaMu - this is getting scarey.
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