The pres outlined plans for a mortgage bail out of some homeowners.
I don't think so!
There are exceptions to every rule but I don't see why the government (a.k.a. you and I) should bail out people that bought more house than they could afford on an adjustable mortgage just because the interest rates were at an all time low. Historical lows rates means it is a given that your payments WILL go up.
More importantly, we are bailing out the mortgage companies that made these inadvisable loans. I own some financial stocks so I am "cutting off my nose to spite my face". Decisions should be made by what is right, not what is beneficial to me. To me THIS is just not right for a government that can't pay it's own bills.
Your opinions you vary and I respect the fact that we can have different opinions.
OK, I will get off my soapbox for now.
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4 comments:
I agree with you 100%.
Common sense would tell a borrower that the time to lock-in a fixed rate loan is when mortgage interest rates are at a historic low, as has recently been the case. Instead, people seem to have jumped at the "opportunity" to get a variable rate loan because of unrealistically low initial teaser rates. Shame on them!
At the risk of sounding cold-hearted, I think they deserve what they get, and should chalk it up to experience.
I also think that before an unknowlegable buyer commits to the largest financial transaction they will probably ever make, they should get INDEPENDENT professional advice, and not rely on the "advice" of realtors or mortgage brokers, whose only real interest is in seeing an escrow close, and thus generate their commission.
And now I'll also get off my bandwagon.
Okay, it's my turn to hop on the soapbox which is about education and protection/justice for the little people.
I'm in favor of helping people keep their homes by requiring lenders to loan money at a capped rate. I know there are people who don't have much money sense but that's because they've learned from their parents or others who don't know much. There's just not enough education about money management and wealth accumulation.
Okay, I'll step down now.
I just went to the store to buy some milk and I thought of you, Squire.
Annie I agree but have a little different take on ARM's. The interest rate on loans should never be allowed to rise. An ARM loan should only be allowed to decrease in interest rate.
Ross and I agree with you Squire. It's too bad our President decided to side with the Democrats on this. They're far too eager to give away our hard-earned taxpayer dollars, and then ask us to give them more, so they can misappropriate it.
The candidates tell us the first thing they'll do if they get in is get rid of the tax breaks that this Congress has put in place, and then raise our taxes. Why would I want to vote for that?
I'm probably opening a can of worms here, because I think we're of opposite opinions in Politics (party affiliation that is) :)
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