Thanks jayguy. I pulled out my docs last night and it looks like my interest rate cannot exceed 10.200% and cannot adjust more than 7.500% each year. Wow what a relief. And you are right, we'll just have to play it by ear. I'm hoping we can move in there and live at least 2 years before we can't afford the payment so we don't have to pay capital gains.Hmm, your situation sounds a lot like my in-laws. Rate reset to somewhere in that 2.5% range and it's tied to the 12-month LIBOR or something like that. I reviewed their loan docs and there is a ceiling and a floor on the rate in addition to a cap on how much the rate can be raised or lowered each time it resets (each 12 months). From what I recall, it can jump a pretty significant amount, but perhaps your loan is different. I don't see rates going up quickly anytime soon, but who knows.
That's a good point Ready2Run. I have concern for my kids and how they feel. I try to point out these kinds of things to them too so they can see it's the new "normal" and we don't have to be ashamed.Unfortunately, I've seen that at least twice before in the Times. It's definitely sad to see but it was also empowering for my wife to see. It showed her that we are not alone in this mess and made it easier for her to accept.