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  • karlhungus
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    2 years ago

    Math aside (I didn’t check) this is exactly how it works, and why 2008 subprime fiasco resulted in people suddenly not being able to afford their houses: you start with a rate you can afford and after a period (I think this was different to your case in 2008) the rate changes and now it’s no longer affordable.

    • rehydrate5503@lemmy.world
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      2 years ago

      This makes sense, yeah. I did the whole stress test thing that was in play when I bought this place, and while I should be able to afford it, it will make for some even more frugal living.

      I’m very worried about another crash like 2008, or even a smaller one and ending up with a house that’s worth 200-300k less and paying more for it.