conversation: User (dslkfjlsdkfjweeskf): "The loan officer I'm talking to has suggested it to bridge a $75k gap between a first mortgage and the possible sale price of a property we're looking at. Thing is, I'd hate to wind up in a 2007-style scenario where the variable rate rises dramatically and we're suddenly unable to make the monthly payment. Is that a valid fear these days?"
  Self: "&gt; Thing is, I'd hate to wind up in a 2007-style scenario where the variable rate rises dramatically and we're suddenly unable to make the monthly payment. Is that a valid fear these days?\n\nIt is a valid fear if you are planning on getting an adjustable rate mortgage, taking a long time to pay it off, and won't be able to afford it if the payments go up.\n\nWhat is the reason that the first mortgage won't cover the price of the property you are looking at?"
  User (dslkfjlsdkfjweeskf): "We live in a market with a relatively high cost of living; we're already putting $200k down but given certain industry restrictions governing how lenders can look at student debt, the maximum we can borrow on a single fixed-rate mortgage is $625k. \n\nGiven my concern about the adjustable rate, I think I'd be highly motivated to pay it down quickly. The interest-only portion of the payment would come out to $287 monthly; I'd probably look at throwing $1,000 or more every month to knock down the principal."
  fishroy (fishroy): "What is the sale price of the property you're thinking of buying? $900k? $200k is over 20% so I would think you could get a jumbo loan instead of a conventional and a 2nd. "
  