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Wednesday, October 01, 2008

The Bush years. Strib reporting one couple's coping efforts.

Strib online, Sept. 27:

The road to foreclosure

How did David Parkes and Kathy Sakry's mortgage double? With each refinancing, they took out cash to spend and pay bills, and rolled high closing costs, fees and property taxes into their mortgage.

Original mortgage, May 1997: $54,500

Terms: 30-year fixed-rate mortgage at 6.75 percent

Closing costs: $2,346

Principal and interest payment: $389


Refinance, November 2004: $64,231

Terms: 30-year adjustable-rate mortgage at 6.38 percent for the first two years

Closing costs: $3,990 including a $1,682 origination fee

Cash back: $10,505

Principal and interest payment: $401


Refinance, December 2005: $85,200

Terms: 30-year "pick-a-payment" negative amortizing adjustable-rate mortgage that started at 6.51 percent

Closing costs: Approximately $4,000, including a $2,054 yield-spread premium and an unusually high $700 title insurance payment

Cash back: $12,036

Interest-only payment: $332


Refinance, October 2007: $112,000

Interest rate: 30-year fixed-rate mortgage at 7.625

Closing costs: $7,502

Cash back: $5,903

Principal and interest payment: $793

Jim Buchta


I bet they voted Bush-Cheney both times, supported the Iraq war without asking how it would be financed or worrying about where all that private contractor money was ending up, and their family income remained stable while the dollar declined and prices rose.

Welcome to the Bush years. Who is to blame?

Who should be bailed out?

Who should not?

What size house, located in which 'burb, when built, and to accomodate how large a family? In effect, was it more house than needed?

Should we be waving those tiny American flags, Made in China?