LenderStreet's columnists (that's us over there) join forces with lenders in your area to keep tabs on the mortgage market. Together we offer timely insights toward a positive loan experience.
When it comes to housing and mortgages, logic has not been part of the equation for the last 20 or so years.
Why do we have so many homes that are underwater and so many foreclosures? Well, Americans wanted the biggest house they could afford (or thought they could afford); lenders were willing to give out loans like Happy Meal toys; and the combination has produced a system that needs to be fixed.
Just remember that if you're trading up, make sure it's a move that you can afford. Just like you figured out with your starter home that you were going to be able to afford the mortgage...