2021-10-17 23:04:59 UTC
On primary conforming loans
Let's make it so everyone can buy, and lets get rid of all renting, except for
Renters are getting reamed, dude.
In place of temporary interest only, a 250 year fixed, at least at bottom, so
people can still buy at bottom. Here the house doubles in value in thirty years,
but the loan isn't paid off. 70% of the loan is paid off in years 220-250. You
just pay interest plus a few pennies. It allows you to buy more house, so
possibly should only be for the bottom.
No adjustable payments should be allowed at all - only fixed teaser to fixed rate.
Payment calculated on blended rate, of two - more equity paid during lower
(teaser) rate period.
There were no adjustable payments, until 2004, and it caused the mortgage meltdown
5 years later when the rates adjusted in 2009.
Quote:"While adjustable rate mortgages first became legal in 1982, they were not
popular with banks until 2004 'to make monthly payments lower, when rates started
rising.' The mortgage meltdown will no doubt repeat itself if this fallacious
type of home lending and speculation at taxpayer expense is not corrected.
Historically, property values don't go up forever."