XPost: ca.general, ca.politics, alt.california
XPost: alt.abortion, alt.drugs.abuse
On 12/7/2019 2:02 PM, Regulation Of Commerce wrote:
250 Year Fixed, 100% LTV, the taxpayers bail out the lender and the
borrower on an instance by instance basis. For conforming loans - up to nearly $500,000 most places, up to nearly $750,000 in places like Los Angeles, Orange County, and San Francisco, (nearly $700,000 San Diego).
Wow!!
You really are delusional aren't you?
None of this adjustable rate mortgage, 5/1 10/1 ARM sh*t, which caused
the previous mortgage crisis. i.e. the loan adjusts from Interest Only
(or fixed payment), to full payment (or adjustable rate payment) after
5-10 years, the borrower can't make the new higher payment, the house is under water, and the borrower thus can't refinance, and defaults on the mortgage.
With a 250 Year Fixed, the payment is basically the same as Interest
Only, the payment always stays the same, the house is paid off in 250 years. (70% of the house is paid off in the last 30 years.) For this program to ever come into existence the taxpayers need to insure the loans.
There will be no equity in the homes except for potential appreciation -
for instance with a normal 30 year fixed, you pay double the price of
the home over 30 years to interest, but the house doubles in value, and
you get your interest back.
Here, after 30 years, half the home would be paid off. For instance,
what started as a $500,000 loan on a $500,000 house, is now a $500,000
loan (technically $499,946.60) on a $1,000,000 house. In another 30 years, or 60 years total, another half the home would be paid off again,
so 75% total, now a $500,000 loan (technically $499,769.65) on a
$2,000,000 house. Just saying.
Everyone will be able to afford a mortgage, and we can get rid of rent,
which is just screwing people as they never get it back. With a home
loan, you get all the interest you pay back, through appreciation, over
the long run.
Loan limits have already gone to 97% LTV on conforming loans, so they'll
have to bail out the banks in the future again probably, so might as
well make it 100% LTV, and bail out both the lender and the borrower, on
an instance by instance basis, so the borrower can turn right around and
buy another house.
If the house is underwater and the borrower defaults, as is easily
possible, there could be no equity in the home. So the banks need to be insured by the taxpayers for this to ever be. Everyone gets a home.
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