At the start of 2004 Mr. Snyder bought a house in St. Paul for $210,000. He 'paid' for it with an interest-only adjustable rate first mortgage of $168,000 and a second mortgage of $42,000 with a fixed rate of 9.4% for three years. Now, as his monthly payments have increased by $200, he is in a financial bind.
His comments, as quoted in today's Wall Street Journal, are, according to a recent survey, illustrative of 30% of mortgagees today, "If I had been aware both loans were interest-only, I would have probably turned the loan down." He claims that the terms of the mortgage were never properly explained to him.
What happened to Mr. Snyder's responsibility to himself and his family? Could he not read? Could he not ask questions if he did not understand?
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