Fannie Mae-No Politics (FNMA)

[whipstick]

see it's no problem, we'll all just get ARMs.

4 fed rate hikes later... oh shit I shouldn't have gotten an ARM now my payments are way too high and now the 30 year is gone... welp there goes my house... or at best I'm underwater because now affordability for the next buyer at my basis doesn't exist! oh well I guess I'll just lose all that equity I put down.. won't I be thrilled.

Also love how they try to equate the 30 year fixed rate at 7% with a 15 year loan but conveniently leave out the rate on the 15 year note as if it will be wildly different than the rate on the 30 year assuming 7% is the prevailing rate at the time... Currently the spread differential for 30 year and 15 year rates is 58 bps. So sure, if you leave out the principal portion of the payment on the shorter amort it's not that big of a difference, except that's not how it works.

amazingly misleading.