Home prices keep falling

by Brandon Koener
(Michigan)

The prices of homes are still falling because when we have a housing market correction, the home values return to fair market value.

According to the FHA, a good manageable home mortgage amount is around 3 times the borrowers yearly income. If that person earns $50,000 a year, a $150,000 home mortgage would be acceptable.

Lately we have seen people getting loans for up to 10 times their yearly incomes. People earning $50,000 a year have been able to finance up to $500,000. That means that most of the paycheck goes to the mortgage.

Banks have been irresponsible and let us slide a long way. Also when people borrow, they need to be aware what they're getting into.

Irresponsibilty and greed on the part of the few have caused problems for all of us.