Now, suppose that a homeowner puts down only 3% of their own money or 3. 5% for the FHA. That means if prices go down by only 3%, the house will be in negative equity and it would pay the homeowner just to walk away and say, "The house now is worth less than the mortgage I owe. I think I'm just going to move out and buy a cheaper house. " So it's very risky when you have only a 3% or 3. 5% equity for the loan. The bank really isn't left with much cushion as collateral.
Blaire, even if all we do is kiss or just lay there and talk, I'm okay with that. I just wanted you up here. Close to me.