Why don't bank lower their mortgage rates to 3% or 4%?
I don't understand: if banks are suffering so much beside all the foreclosures and inability for many to not breed their monthy payments, why are they still charging 5-6% on mortgage rates and refinances.
Answers:
It's supply and demand. To put it simply, there is smaller quantity cash available to borrow, therefore you are going to hold to pay more for it. That and they cannot afford the risk of default, so they are hedging their bets.
They have determined that they will lose smaller quantity money and reduce their risk of bankruptcy if they don't lower their rates and simply let people evasion on their loans.
It doesn't mean they are right, though. After all, these are like peas in a pod bankers (minus a few) that were stupid enough to find themselves into this mess.
Because they don't trust the customers taking out the loans. One reason for the housing mess.
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Answers:
It's supply and demand. To put it simply, there is smaller quantity cash available to borrow, therefore you are going to hold to pay more for it. That and they cannot afford the risk of default, so they are hedging their bets.
They have determined that they will lose smaller quantity money and reduce their risk of bankruptcy if they don't lower their rates and simply let people evasion on their loans.
It doesn't mean they are right, though. After all, these are like peas in a pod bankers (minus a few) that were stupid enough to find themselves into this mess.
Because they don't trust the customers taking out the loans. One reason for the housing mess.
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