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Had steady employment at the time, and energy prices were stable, you had a reasonable expectation that you could re-finance into a fixed-rate mortgage without any problem down the road.
So, you get 'down-sized', or have to accept a position with lower pay. Suddenly, the costs of just driving to work and heating your house have doubled or tripled, sucking whatever discretionary income you might have had out of your budget. Feeding your family just jumped 25% due to higher transportation costs of the food processing and distribution system in this country.
You go to the bank to get a fixed rate and they say, "Sorry, based on the figures you gave us, we cannot qualify you for a re-finance, you're too risky as your income doesn't service the mortgage debt you want to take on."
Yep, got nothing to do with it.
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