Mortgage rate freeze rewarding stupidity?
As mortgage rates fell to lows not seen since Eisenhower was president I refinanced my mortgage. There be offers for interest only loans and adjustable rate mortgages next to rates less than 3% that would have resulted surrounded by ridiculously low monthly payments but I saw the risk in those and instead took a 4.875% 15-year fixed mortgage. Now the Bush administration is brokering a accord to freeze the rates on those adjustable rate mortgages.
How is that not just rewarding people for man stupid? What's next, having the casinos and lotteries impart back money to those who played and didn't win?
Since we're doing "do overs" here, how about they present me back the extra interest I paid because I be smart enough not to go for the ARMs?
Answers:
I'm one of the stupid people. I be lied to about how it worked , and how much my home is worth. I am at 14%. After my loan started adjusting my errand closed. I had been within for 12 years. I was approved for a new fixed rate but my home will not appraise for ample to pay off the loan I own. I make to much money to file liquidation, and not enough to pay my mortgage. If I lose my home I might as economically quit my job and live on welfare. The ones that got the fixed rates would still be paying their tariff money to help take concern of us. Why don't you complain about that the ones living off our rates dollors? At least I go to work every and try to support my own familial so you don't have to!!
I agree. I guess I should hold refinanced with a sub-prime instead of having a fixed rate.
If the organization truly believes that the problem is so huge that a break is needed, there is still no reason for a five-year freeze. I own compassion for people who may have lost job, faced unforeseen financial problems, etc. In reality, I probably would not have responded to your question have the fix been for one year. That would give nation enough time to sell and find a place they can afford to live (likely as a renter).
A five-year freeze is totally nonsensical. It appears that the government is playing both to the masses and to the home loan industry contained by this election year.
I thought I was the simply one who was peeved about this, but I'm glad at hand are others.
Socialist? Rewarding stupidity? It's not socialist, a rate freeze is give or take a few rewarding and supporting and protecting the MORTGAGE UNDERWRITERS and the APPRAISERS and the BANKERS who created this mess. Stop thinking of social problems as being the fault of those at the bottom of the food manacle. Why don't the banks have to thieve it on the chin for this? You can be assured that they will not be held responsible in any meaningful opening. This rate freeze is a too-little, too-late attempt at forestalling a meltdown in U.S. real estate and bank.
Sure people who can't afford a mortgage shouldn't have one. However, these general public were clearly told, for many reason, that they could afford the mortgage--that's how they got one after all. Yet, culture who can't afford them shouldn't get them, right? And who makes that ruling to give them a loan, the house buyer, or the person/bank underwriting the loan?
Your schadenfreude shall be preserved, as you infer that many of these subprimes were defaulting even up to that time the rate reset. And mortgages will be continue to be defaulted upon even if the rates are frozen. Fixed-rate failure to pay rates aren't so hot these days either, by the road.
The problem is that people are holding mortgages that they can't afford, regardless of the rate. And since the house is probably worth anywhere from 5% to 30% less than what they compensated for it, and nobody will buy it, the owners just walk away from it. Can you blame them?
Recently within Bakersfield CA, a guy, David Crisp, stands accused of financial fraud related to his massive home nouns and real estate scamming; read here: http://bakersfieldbubble.blogspot.com/20…
There will be some more people close to this nabbed, but the big crooks never get the even-handedness they deserve, it seems.
It is clear to any reasonable onlooker that this real estate bubble rewarded crooks and greedy scamsters, not homebuyers, who are now saddle with huge debts and overvalued homes. A rate freeze won't change that.
thank you for pointing out the government's desire to become more Socialist every sunshine.
stupidity is rewarded every day in America.
personnal responsiblity is not rewarded. Source(s): biz owner 12yrs home substructure i-net
I think we adjectives know that people who bought homes in olden times 2-3 years with shaky lending practices shouldn't hold been able to buy a home. Partially because of it, we (as a whole) have enjoyed a stronger economy, stronger chore growth, and economic expansion as reflected contained by above 6% GDP growth since 2003 and not to mention appreciating house values (i'm sure you didn't complain about that). Now GDP growth is around 4.9% with a possibility of slowing down bellow 2% this quarter.
Now that it's payback time, next to ever looming job losses, slowing economy, and continual drops within home values and not to mention increasing crime rates, we shouldn't be too happy that the sub-prime borrowers are going under. We as a intact will also suffer.
Lastly, the sub-prime borrowers probably didn't get the 3% rate for their ARM (sub-prime mostly means bleak credit, so their rates would of definitely been superior than yours). So, why punish those borrowers that have been discussion their payments (and because of that increased their credit score) when they probably are paying the same 4.875% (frozen rate)?
Just for reference, I didn't buy a house during the boom because I thought resembling you that the prices were insane. But with the recent down turn, and 15-20% drop contained by new home prices, my family have finally bought a new home. We also took out a 30 year fixed loan. Source(s): Bureau of Economic Analysis
http://www.bea.gov/national/index.htm#gdp
not to worry surrounded by the long run you will still be a winner -- because these losers will turn around and figure out a means of access to goof up a second chance!
The offer is only for those who's adjustment are after 1/1/08 which means they purchased after 1/1/05. Since the market peaked during the length of eligibility and has since fallen up to 30% contained by some areas, most peope who bought during this period is a loser no matter what benign or mortgage they have. Anyone who had no or little down expense, the best thing would be to just step away. The "deal" is an effort to help bank by convincing people to stay with a mortgage for an amount greater than the meaning of their house. If they are rational about money they won't help yourself to it. Anyone who had a large down pay-out does not have the option.
"
How is that not just rewarding race for being stupid? What's next, have the casinos and lotteries give back money to those who played and didn't win?"
When I applied for my mortgage, I applied at 20 different lenders its call "Unfair Lending". I had an excellent credit score, but every lender told me I COULD NOT gain a fixed rate, That it was unavailable to me specifically, because I be 22, one place had me fax my report cards from college to try to get a fixed rate. There be a broker that consistently told me that Lenders are only going to offer me ARMs. Whenever I have asked for a fixed rate I had to jump through hoops and fax something that they know I didn't have like 6 years of W-2's.
I don't know what to relay you except that you may be the smartest guy on the planet, and yea sure you deserve a rebate.
I got approved finally for my loan on the day of my closing, and yea, it be an ARM, I felt that I had no choice. Does that nouns fair to you?
Isn't what Bush is doing, something Hillary would do?
Time for people to see what is really going on.
Related Questions:
Fixed rate mortgage coming to an wind up.?
i have a fixed rate mortgage that runs out in feb 09 what will transpire when it runs out then.The mortgage will probably come down but would it be better to remortgage in establish to get a better rate,or would you just leave your job it...
How is that not just rewarding people for man stupid? What's next, having the casinos and lotteries impart back money to those who played and didn't win?
Since we're doing "do overs" here, how about they present me back the extra interest I paid because I be smart enough not to go for the ARMs?
Answers:
I'm one of the stupid people. I be lied to about how it worked , and how much my home is worth. I am at 14%. After my loan started adjusting my errand closed. I had been within for 12 years. I was approved for a new fixed rate but my home will not appraise for ample to pay off the loan I own. I make to much money to file liquidation, and not enough to pay my mortgage. If I lose my home I might as economically quit my job and live on welfare. The ones that got the fixed rates would still be paying their tariff money to help take concern of us. Why don't you complain about that the ones living off our rates dollors? At least I go to work every and try to support my own familial so you don't have to!!
I agree. I guess I should hold refinanced with a sub-prime instead of having a fixed rate.
If the organization truly believes that the problem is so huge that a break is needed, there is still no reason for a five-year freeze. I own compassion for people who may have lost job, faced unforeseen financial problems, etc. In reality, I probably would not have responded to your question have the fix been for one year. That would give nation enough time to sell and find a place they can afford to live (likely as a renter).
A five-year freeze is totally nonsensical. It appears that the government is playing both to the masses and to the home loan industry contained by this election year.
I thought I was the simply one who was peeved about this, but I'm glad at hand are others.
Socialist? Rewarding stupidity? It's not socialist, a rate freeze is give or take a few rewarding and supporting and protecting the MORTGAGE UNDERWRITERS and the APPRAISERS and the BANKERS who created this mess. Stop thinking of social problems as being the fault of those at the bottom of the food manacle. Why don't the banks have to thieve it on the chin for this? You can be assured that they will not be held responsible in any meaningful opening. This rate freeze is a too-little, too-late attempt at forestalling a meltdown in U.S. real estate and bank.
Sure people who can't afford a mortgage shouldn't have one. However, these general public were clearly told, for many reason, that they could afford the mortgage--that's how they got one after all. Yet, culture who can't afford them shouldn't get them, right? And who makes that ruling to give them a loan, the house buyer, or the person/bank underwriting the loan?
Your schadenfreude shall be preserved, as you infer that many of these subprimes were defaulting even up to that time the rate reset. And mortgages will be continue to be defaulted upon even if the rates are frozen. Fixed-rate failure to pay rates aren't so hot these days either, by the road.
The problem is that people are holding mortgages that they can't afford, regardless of the rate. And since the house is probably worth anywhere from 5% to 30% less than what they compensated for it, and nobody will buy it, the owners just walk away from it. Can you blame them?
Recently within Bakersfield CA, a guy, David Crisp, stands accused of financial fraud related to his massive home nouns and real estate scamming; read here: http://bakersfieldbubble.blogspot.com/20…
There will be some more people close to this nabbed, but the big crooks never get the even-handedness they deserve, it seems.
It is clear to any reasonable onlooker that this real estate bubble rewarded crooks and greedy scamsters, not homebuyers, who are now saddle with huge debts and overvalued homes. A rate freeze won't change that.
thank you for pointing out the government's desire to become more Socialist every sunshine.
stupidity is rewarded every day in America.
personnal responsiblity is not rewarded. Source(s): biz owner 12yrs home substructure i-net
I think we adjectives know that people who bought homes in olden times 2-3 years with shaky lending practices shouldn't hold been able to buy a home. Partially because of it, we (as a whole) have enjoyed a stronger economy, stronger chore growth, and economic expansion as reflected contained by above 6% GDP growth since 2003 and not to mention appreciating house values (i'm sure you didn't complain about that). Now GDP growth is around 4.9% with a possibility of slowing down bellow 2% this quarter.
Now that it's payback time, next to ever looming job losses, slowing economy, and continual drops within home values and not to mention increasing crime rates, we shouldn't be too happy that the sub-prime borrowers are going under. We as a intact will also suffer.
Lastly, the sub-prime borrowers probably didn't get the 3% rate for their ARM (sub-prime mostly means bleak credit, so their rates would of definitely been superior than yours). So, why punish those borrowers that have been discussion their payments (and because of that increased their credit score) when they probably are paying the same 4.875% (frozen rate)?
Just for reference, I didn't buy a house during the boom because I thought resembling you that the prices were insane. But with the recent down turn, and 15-20% drop contained by new home prices, my family have finally bought a new home. We also took out a 30 year fixed loan. Source(s): Bureau of Economic Analysis
http://www.bea.gov/national/index.htm#gdp
not to worry surrounded by the long run you will still be a winner -- because these losers will turn around and figure out a means of access to goof up a second chance!
The offer is only for those who's adjustment are after 1/1/08 which means they purchased after 1/1/05. Since the market peaked during the length of eligibility and has since fallen up to 30% contained by some areas, most peope who bought during this period is a loser no matter what benign or mortgage they have. Anyone who had no or little down expense, the best thing would be to just step away. The "deal" is an effort to help bank by convincing people to stay with a mortgage for an amount greater than the meaning of their house. If they are rational about money they won't help yourself to it. Anyone who had a large down pay-out does not have the option.
"
How is that not just rewarding race for being stupid? What's next, have the casinos and lotteries give back money to those who played and didn't win?"
When I applied for my mortgage, I applied at 20 different lenders its call "Unfair Lending". I had an excellent credit score, but every lender told me I COULD NOT gain a fixed rate, That it was unavailable to me specifically, because I be 22, one place had me fax my report cards from college to try to get a fixed rate. There be a broker that consistently told me that Lenders are only going to offer me ARMs. Whenever I have asked for a fixed rate I had to jump through hoops and fax something that they know I didn't have like 6 years of W-2's.
I don't know what to relay you except that you may be the smartest guy on the planet, and yea sure you deserve a rebate.
I got approved finally for my loan on the day of my closing, and yea, it be an ARM, I felt that I had no choice. Does that nouns fair to you?
Isn't what Bush is doing, something Hillary would do?
Time for people to see what is really going on.
Related Questions:
Fixed rate mortgage coming to an wind up.?
i have a fixed rate mortgage that runs out in feb 09 what will transpire when it runs out then.The mortgage will probably come down but would it be better to remortgage in establish to get a better rate,or would you just leave your job it...