Its hard for me to understand how a difference of 3 percentage points on a mortgage will make a difference between staying financially afloat or losing one's house. If home buyers were indeed cutting their finances that close, then they must have known all along that their home ownership was only temporary. The fact that lenders were OK'ing loans to that type of borrower is next to criminal, since they must have known all along that foreclosure was around the bend, and someone else was going to have to bail out the buyers & the lenders. Mainly, the rest of the country's responsible citizens who never would have purchased homes under those terms. Looks like the chiselers, both buyer and lender, won this one. It was fun while it lasted for both of them.