It doesn’t matter if your credit rating was 620, 720 or 820, if you didn’t pay attention on the toxic mortgages and know you can handle the max payment, they will sink you. I don’t if any less than 95% of the borrowers are thinking of anything other than the minimum payment.

A classic example is Lending Tree’s $400,000 for $1334 a month ads. When you payment jumps from $1334 a month after your optional 12 month minimum payment expires reseting to $3050 a month, most buyers are going to be financially stressed.