Home Buyers Forced to Change Tactics
Washington Post Staff Writer
Wednesday, August 29, 2007; Page D01
The credit crunch has turned $417,000 into the magic number for home buyers shopping for mortgages.
Rattled investors have become reluctant to buy loans for more than that amount — known as jumbo mortgages — and that in turn has pushed some lenders to raise interest rates. Caught in the middle are potential home buyers who are getting walloped by higher rates or shut out of the market.
. . . home buyers are figuring out how to adapt to the new circumstances by making larger down payments . . .
‘Adapting’ to new circumstances by having a decent down-payment. Those used to be the ‘old’ circumstances and were called by the proper name–owning a home you can afford, instead of looking at where you live as an ‘investment.’
Caught in the middle and walloped are hardly fair adjectives–try irresponsible and in over their heads.