Listen up! You can own a $500,000 home with a monthly payment of just $1,200! As we now know, too many Americans fell for a pitch like this in the recent real estate bubble; they took on mortgages with low, teaser interest rates and balloon payments. As a result, they bought houses that were simply too expensive for them, and when the monthly payment escalated, they couldn’t afford the payments.
As I mentioned in my last post, I’m concerned that a similar scenario will play out with Americans who are hoping to retire by relying on their 401(k) balances and IRAs.
Read the full article at CBS MoneyWatch.