Was the purpose of the govt. bailout to produce mortgage rates run UP?? Cuz that's what's stirring...?
I've heard multiple people natter about how fixing the financial crisis depends upon stabilizing the housing market. This bailout would appear to be doing the exact contrary. Your thoughts??
http://news.yahoo.com/s/time/20081017/us…
Answers:
Mortgage rates going up keep the dead-beats outs.
The original problem of the housing flea market was people buying houses they couldn't afford at rates that be LOWER than they should have been.
Normally, the greater a credit risk you are, the sophisticated your interest rate.
When all the risky people not here the market, the average mortgage rates went rear legs up where they should be rather than individual held down by artificial means.
(This is a market response to the crisis, not to the bailout, and it's not something that anyone "decided", it merely happened in the pure course of business.)
Check the paperwork for your mortgage. If you have an adjustable rate mortgage, then the rate will budge up after a specific length of time.
You have a fixed rate mortgage, then any increases contained by your payment is caused by an increase contained by your real estate taxes or your property insurance which is being salaried by the bank every year.
If you have any question, you can always call the lend institution which is currently servicing your mortgage. They will explain it to you.
In any case, your payment amount will not be artificial at all by the recent bailout legislation.
The plan seem to be to increase the value of the dollar against other markets. By increasing the interest rate, it make the dollar "worth" more is one is willing to pay more to borrow it. IT is the adjustment process of this mess. If you look up the history of the good and loan crisis of the early nineties, it has a similar scenario.
It's what big business does, especially the ones we deem an absolute necessity. Banking, Insurance, Medical and Energy are all squeezing the life span out of middle and lower earning Americans. The CEO's and executive level supervision are going to get theirs, one way or another. When ten general public can pull out over a hundred million from a big corporation year after year, I don't want to hear about their financial problems. The greed of the super booming has gotten out of hand and is destroying this country.
Can't have it both ways people don't want to be "socialist" but this is what happen when you let these unregulated banks do what they want.
That's a pretty slanted article written by somebody who have no understanding of the mortgage problem. The rates quoted are fixed rate mortgages which aren't the problem. The depression has occur due to ARM (adjustable rate mortgages).
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http://news.yahoo.com/s/time/20081017/us…
Answers:
Mortgage rates going up keep the dead-beats outs.
The original problem of the housing flea market was people buying houses they couldn't afford at rates that be LOWER than they should have been.
Normally, the greater a credit risk you are, the sophisticated your interest rate.
When all the risky people not here the market, the average mortgage rates went rear legs up where they should be rather than individual held down by artificial means.
(This is a market response to the crisis, not to the bailout, and it's not something that anyone "decided", it merely happened in the pure course of business.)
Check the paperwork for your mortgage. If you have an adjustable rate mortgage, then the rate will budge up after a specific length of time.
You have a fixed rate mortgage, then any increases contained by your payment is caused by an increase contained by your real estate taxes or your property insurance which is being salaried by the bank every year.
If you have any question, you can always call the lend institution which is currently servicing your mortgage. They will explain it to you.
In any case, your payment amount will not be artificial at all by the recent bailout legislation.
The plan seem to be to increase the value of the dollar against other markets. By increasing the interest rate, it make the dollar "worth" more is one is willing to pay more to borrow it. IT is the adjustment process of this mess. If you look up the history of the good and loan crisis of the early nineties, it has a similar scenario.
It's what big business does, especially the ones we deem an absolute necessity. Banking, Insurance, Medical and Energy are all squeezing the life span out of middle and lower earning Americans. The CEO's and executive level supervision are going to get theirs, one way or another. When ten general public can pull out over a hundred million from a big corporation year after year, I don't want to hear about their financial problems. The greed of the super booming has gotten out of hand and is destroying this country.
Can't have it both ways people don't want to be "socialist" but this is what happen when you let these unregulated banks do what they want.
That's a pretty slanted article written by somebody who have no understanding of the mortgage problem. The rates quoted are fixed rate mortgages which aren't the problem. The depression has occur due to ARM (adjustable rate mortgages).
Related Questions: