Mortgage rate freeze

[jakobscalpel]

Here is the monthly post in the General Govt forum. I don't have the energy to say anything about this news.

http://www.reuters.com/article/politicsNews/idUSWAT00853020071205?feedType=RSS&feedName=politicsNews&rpc=22&sp=true

[jakobscalpel]

It's official sports fans!

http://biz.yahoo.com/ap/071206/mortgage_crisis.html

"The homeowners deserve our help. The steps I've outlined today are a sensible response to a serious challenge." - Our ******* "free-market" President.

[Yosemite_Wolf]

i just got re-fid at 6.7 percent. woo hoo... that is good considering i got rid of a 9 percent second mortgage~~~

[Kahlua Kid]

We're refi'ing our rental at 5.1% to 5.5% (we had a 5.85%, but I want to lower the payment with more down in it) - not sure yet as I need to figure out how many points if any I want to pay. My mother does mortgage loans if anyone is interested...

I'm a bit peeved at our government running in and saving people when they make stupid mistakes...

Don't buy flood insurance - FEMA will be there for you

Don't buy Earthquake Insurance - FEMA will be there for you

Don't worry about buying a house that is out of your reach - just finance away with the crazy ARMs - and we'll save you!!!

What about those of us who are responsible??? Shoot - I should just not care anymore and let my credit go to heck, finance everything - its the American way!!!

Anyways - on the flip side, I do understand that those who are taking out 7% to start ARM loans are those who aren't able to qualify for A credit... they have to pay more, and if their loan starts at 7% and was quickly adjusting upwards, then yes, I can see how they quickly would be priced out of their home... however, READ THE FINE PRINT!!!... oops, back to my sympathetic side... they may not be educated about how the loans work and were caught by surprise. I'm sure there are those out there who want their commission and just tell them, hey, you can afford this payment!!! See!!!

[Meat Man]

Bush SUCKS!! Why didn't he do something sooner? That seems to be what he does, he waits until it blows up in his face to take action. If we want to help this great country we live in get past this market we are in now, here's what needs to be done:

1- Impech Bush:D

2- CAP the price of homes. You should not get more then $20,000 for every five years you own your home. EXAMPLE: I bought a house for $100,000. I must wait five years to get $120,000 for it. $20,000 for every five years. This way it keeps cost down, gives people time to get better jobs or better pay, and lets more people afford a home.

[Kahlua Kid]

Cap the price of homes? Excuse me? Supply and demand are what drive our country - sorry, but I BELIEVE in capitalism and working hard to get where you want to go.

[jakobscalpel]

Bush SUCKS!! Why didn't he do something sooner? That seems to be what he does, he waits until it blows up in his face to take action. If we want to help this great country we live in get past this market we are in now, here's what needs to be done:

If you wait until everything blows up, it gives wall street the maximum time to collect zero risk fees per transaction, leaving others holding the toxic subprime paper. You take action only when it threatens to spill over to the BIG accounts, so you bail them out and prime the pump for a tax rise, thereby passing the risk onto the very people who acted responsibly; the middle class no-mistakes tax paying homeowner.

1- Impech Bush:D
I used to feel this way. I could care less now


2- CAP the price of homes. You should not get more then $20,000 for every five years you own your home. EXAMPLE: I bought a house for $100,000. I must wait five years to get $120,000 for it. $20,000 for every five years. This way it keeps cost down, gives people time to get better jobs or better pay, and lets more people afford a home.

No offense, but this might be the single worst economic idea I've ever read. First, it is not percentage based, meaning high value homes would be locked to a mini $20,000 increase. Second, it is not inflation based, meaning wages could far outstrip the locked in rise, penalizing existing homeowners. Third, it would suppress transaction volume, hurting both the realtors (Which actually wouldn't bother me in the slightest. Nothing personal to the realtors here!) and county property tax collections. Fourth, there would be no need for realtors at all, since the price is capped and there is no room for negotiation.

[Meat Man]

No offense, but this might be the single worst economic idea I've ever read. First, it is not percentage based, meaning high value homes would be locked to a mini $20,000 increase. Second, it is not inflation based, meaning wages could far outstrip the locked in rise, penalizing existing homeowners. Third, it would suppress transaction volume, hurting both the realtors (Which actually wouldn't bother me in the slightest. Nothing personal to the realtors here!) and county property tax collections. Fourth, there would be no need for realtors at all, since the price is capped and there is no room for negotiation.




I think you just proved my point. How?........


1- High value homes: Every home is "high value". Some just cost more then others. Why would you want to pay higher for a home then the last guy did last year? Is that really so much time?

2- No need for realtors: Why? You will always need someone to make the deal. Yes you can go "buy owner" and all that, but you better know your stuf. a friend of mine got sued because he didn't know the realestate laws and sold his house.

3- Wages: This is my main point. Right now the national average income is $40,000 a year. So why would a mortage payment be $2000 a month? This is the problem, homes are not just not affordable anymore.


I understand how some of you can say it is a bad idea, even communist like. But really here, look at the facts. Homes just cost to much. It's to the point that either only rich people can live in good area and in a nice house, or your poor and live in the getto and have nothing.

The "American Dream" is flying out the window, and if we don't want our kids to have to move all in together in order to afford a mortgage payment, a CAP is a MUST!!

[Kahlua Kid]

Housing prices are falling, why? Because of economics. The housing bubble is bursting. Like you said, most (of those living in California - other areas of the country are more affordable - ie., Colorado, Texas, etc.) are unable to handle the high mortgage payments. There are options. Move out of state? Wait for housing to come down (which it is on its way)? Buy smaller (we don't get to start out in mansions, but for whatever reason the younger generation thinks they should just get huge salaries, cool cars and huge houses to start -- think back to those in the 1940's... the average size home was 1,000 sq. ft... now homes have grown to much larger sizes due to builders cashing in on the baby boomers who are driving so much of our economy trading up for 3,000 and more sq feet), etc...

I had to wait to buy my first place, scrimp, save, borrow from my parents, etc... I didn't have all the luxuries when I first started out, we were "house poor". Its a fact of life in California. We have better weather, the beaches, the mountains, and lots of people want to live here - supply and demand.

A cap is not the answer.

The builders have overbuilt CA in the last 10 years, foreclosures are happening, mortgage lenders have tightened (as they should have done all along their credit guidelines/requirements), less people are qualifying - large Supply - so... prices are falling.

Its happened before (and that's when we chose to buy our first place in the early 90's), it will happen again...

What I do agree with is that the US has a huge difference in the classes now than they had in the past - the middle class is slowly diminishing. The rich are SUPER rich... in the past there were the Carnegies, etc... but they were only a few, not the many we have today in Celebrities, Sports players, Business Barons, etc... Perhaps as America goes on this route there will be a socio-economic revolution as France had in the past... but now adays, they would I think militarily quelch it.

[Yosemite_Wolf]

why do first time buyers want to go out and buy 3000 sq foot homes with two living rooms, two dens, 5 bedrooms, 5 car garages, pools and hottubs?? Start small and work your way to bigger houses, Kids think that they should get 40 bucks an hour to flip burgers.... sworrie! But it is also the mortgage lenders who qualify these kids for 400K... so they go out and buy what they are qualified for!! I was qualified for 450K when I went to buy my house and was shocked! Who wants to pay that kinda of house payment?? I know many a new grad RNs who get their licenses and rush out and buy a big ol huge car, cadillac, etc and a huge house...... They see dollar signs, and the mortgage lenders see easy money comin' in the door.

[Meat Man]

why do first time buyers want to go out and buy 3000 sq foot homes with two living rooms, two dens, 5 bedrooms, 5 car garages, pools and hottubs?? Start small and work your way to bigger houses, Kids think that they should get 40 bucks an hour to flip burgers.... sworrie! But it is also the mortgage lenders who qualify these kids for 400K... so they go out and buy what they are qualified for!! I was qualified for 450K when I went to buy my house and was shocked! Who wants to pay that kinda of house payment?? I know many a new grad RNs who get their licenses and rush out and buy a big ol huge car, cadillac, etc and a huge house...... They see dollar signs, and the mortgage lenders see easy money comin' in the door.


I agree. 100%:)

We live in a very superficial world now. Got to keep up with the jones right? Only now the jones are house poor or homesless, and so is everyone else.

[John S]

We just started escrow and are first time buyers. Perhaps we are the exeption but we have saved for over 10 years, are putting 20% down and are getting into a simple 27 year-old house that is 1650 sq/ft (and we have three kids). We have always lived within our means, paid our bills, and have never carried credit card debit. I don't mean to blow our own horn but there are people out there like us. As borrowers, we have always accepted our end of the bargin. The borrower has to be smart and bo their home work. I will never expect Buch or any other President to "bail" me out. I'd rather live under a bridge :) !