Appreciate the insight bmarum. I’m sure you’d agree, of course, that people who purchased anything for 2.5 times income are rare and, since you likely have high income(s), you are the exact type of people for whom ARM loans make sense.
The “average Joe” has absolutely NO business buying a home for 8-12 times income with a debt instrument (ARM) that enables him/her to “squeeze into” said home.
Nope…the ARM will be the death of this “house of cards”, and it will impact many people’s ability to borrow in the future, it will ruin many people’s credit, it will decimate many in the newer developments like 4S Ranch as they ALL drank the kool-aid and bought the biggest home they could “afford”, and, importantly, it will lead to lower comps and neighborhood instability and upheaval all over San Diego County.
