Another ask on the mortgage crisis. Why be the giant division of the mutable rate?
so much higher? Is that price gouging? Was the difference between the low (starter rate) and large (final rate) a lot different?
Answers:
You feat like people be tricked. LMAO
People entered into these agreements with their eyes stretch out, hoping they could somehow make it.
Higher interest rates are applied to loans with superior risks. Subprime loans are high risk loans.
No it is not price gouging. It is not even usury as defined by various state law.
Some would argue the high part be not so much higher, especially in relationship to the type of loan, (ARM) the credit rack up of the applicants (most would not qualify for a loan under normal circumstances) and the expertise that the housing market could not continue to increase forever.
I'd never do an ARM - if you can't afford a 30 year rate, then the adjustable isn't going to help out - unless you plan to sell before it go up. It's no gouging - the terms are given up front and the rate is connected to some other rate like prime + 10% or something. The rate starts out low but only for the first couple of years - after they climb high. The idea is to attain an ARM while they may fall, then refi at a lower long permanent status rate - but it's risky and speculative.
You can alway refinance a 30 year mg if rates drop.
yes it be 2.5 to 3 points different it doesnt sound like alot until you start thinking just about California and 500k houses- sometimes the differences were 1k or more per month.
im a capitalist and believe the market plays itself out, but in that was some fraud in this, the houses be over valued, and some mortgage companies colluded with appraisers to get those values big... the NY AG is investigating several large companies for this. So it isnt entirely the consumers fault.
Simple answer, greed.
Obviously, the greater the interest rate on money that is to say loaned out, the greater the return for the lender.
Too bad were bailing out the greedy, knob players in these scandals.
It was not gouge. The banks have no bearing of handling the rates set by the Federal Reserve. It may have been a moral form of false hype, by the banks not better explaining what happens if the price increases. But, not gouge. The price of your home or principal on your loan never went up. Just the rate. Signing a loan you don't understand, is of late like buying stocks for companies when you dont understand them.
YOUR FAULT...
Related Questions:
We enjoy a mortgage rate of 6% fixed next to a principal balence of 122,000. If the rate drops to 5% should we...?
refinance Aside from your tax write off individual reduced, it will cost many thousands of dollars to refi. How long you intend to stay in your home matter too. No...
Answers:
You feat like people be tricked. LMAO
People entered into these agreements with their eyes stretch out, hoping they could somehow make it.
Higher interest rates are applied to loans with superior risks. Subprime loans are high risk loans.
No it is not price gouging. It is not even usury as defined by various state law.
Some would argue the high part be not so much higher, especially in relationship to the type of loan, (ARM) the credit rack up of the applicants (most would not qualify for a loan under normal circumstances) and the expertise that the housing market could not continue to increase forever.
I'd never do an ARM - if you can't afford a 30 year rate, then the adjustable isn't going to help out - unless you plan to sell before it go up. It's no gouging - the terms are given up front and the rate is connected to some other rate like prime + 10% or something. The rate starts out low but only for the first couple of years - after they climb high. The idea is to attain an ARM while they may fall, then refi at a lower long permanent status rate - but it's risky and speculative.
You can alway refinance a 30 year mg if rates drop.
yes it be 2.5 to 3 points different it doesnt sound like alot until you start thinking just about California and 500k houses- sometimes the differences were 1k or more per month.
im a capitalist and believe the market plays itself out, but in that was some fraud in this, the houses be over valued, and some mortgage companies colluded with appraisers to get those values big... the NY AG is investigating several large companies for this. So it isnt entirely the consumers fault.
Simple answer, greed.
Obviously, the greater the interest rate on money that is to say loaned out, the greater the return for the lender.
Too bad were bailing out the greedy, knob players in these scandals.
It was not gouge. The banks have no bearing of handling the rates set by the Federal Reserve. It may have been a moral form of false hype, by the banks not better explaining what happens if the price increases. But, not gouge. The price of your home or principal on your loan never went up. Just the rate. Signing a loan you don't understand, is of late like buying stocks for companies when you dont understand them.
YOUR FAULT...
Related Questions:
We enjoy a mortgage rate of 6% fixed next to a principal balence of 122,000. If the rate drops to 5% should we...?
refinance Aside from your tax write off individual reduced, it will cost many thousands of dollars to refi. How long you intend to stay in your home matter too. No...