[W2R]

I would be the first to admit that I do not have a good understanding of the average home-buyer's psychological framework.

But, like many here, I was recently a first-time home buyer (in 2002, in my case). At the time, people at work curiously asked me if I bought it on zero down with an ARM and such. Even though I was a newbie to buying real estate, that all seemed so fishy to me! I couldn't imagine what I would do, if I wanted to stay in my home and couldn't refinance before the ARM rates went up. What if credit got too tight to do that? Besides, I wanted a predictable, solid 30 year fixed mortgage with a big, traditional bank (which I got). OK, I felt a little stupid but I would never have considered going for an ARM, not in a million years.

Seems like a lot of others that I know eventually decided on a 30-year fixed as well; I don't believe that I know anybody around here with an ARM on their own home. Seems like the only people I knew of around here, (or outside of California and the East Coast) with ARM's were flippers and speculators, not people who were planning to actually live in their homes.

The media cry and wail for Joe Average, the common hardworking homeowner and how his home is being taken from him. I think this may be a big misrepresentation. Maybe all this congressional action and otherwise is intended to protect the new INDUSTRY of flipping/speculating, not the average homeowner.

But on the news, all we hear is media sobbing about the poor homeowners. In middle America is this really happening to the extent being reported, or (outside of California) is it another example of the media distorting the truth? Maybe I just don't realize the extent of homeowner involvement here.