Flash back to 1992...I'm buying my first yurt, and insisting on a 30 year fixed mortgage at, like, 7.5%. All my new neighbors are laughing at me, as my payment is something like $1700/month, whereas their payments are about $700 on their 4% ARMs.
Wife and I save money, re-finance, move, re-finance 3 times more. Neighbors buy new cars, boats and clothes with HELOCs.
Flash forward 15 years...my mortgage payment is about the same as the rent on a one bedroom apartment now, and the neighbors are crying babyshoes because their ARMs are 8-9% and they can't refi because they have no equity left in their houses, and their credit sucks.
Mind you, none of my current neighbors are in this situation, but I need someone to demonize in this story, so lets pretend...
Anyway, what I was getting at is look at the picture to see what I think of your dilemma, Mr. and Mrs. Spend Too Much Money That's Not Yours...two words - "too bad".
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