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Mortgage Interest Rates - Politics, Business, Civil, History - Posted: 13th Jun, 2008 - 3:08pm
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Fact or Fiction: A conspiracy?
Post Date: 7th Oct, 2006 - 11:50pm / Post ID: #
Mortgage Interest Rates
Mortgage Interest Rates
I've heard that Mortgage Interest Rates are set in such a way to keep the general public from becoming too wealthy and causing inflation. Since a home purchase is the biggest investment that a typical family can make, if that family pays the mortgage with ease then they are likely to spend more thus causing inflation.
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Rates Interest Mortgage
I would not be surprised if that were the case Gossip, after all if it were easy for everyone to own their own home then everyone would have instant cash flows either through mortgages or selling. Interest rates do not make this realistic though and because most times they tend to be high it keeps most of us poor folk at bay.
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Post Date: 8th Nov, 2007 - 10:55am / Post ID: #
NOTE: News [?]
Mortgage Interest Rates History & Civil Business Politics
EDITORIAL: FUELING THE MORTGAGE MESS
The mortgage lending crisis bears some eerie similarities to the tech-stock boom and bust of the 1990s. For a while, an escalating market provided so much money that unscrupulous people took advantage of lax controls and regulations. Then market conditions made everything tumble.
Ref. https://deseretnews.com/dn/view/1,1249,...25665,00.html
Post Date: 11th Nov, 2007 - 7:40pm / Post ID: #
Rates Interest Mortgage
Gossip,
Interest rates are not a conspiracy to keep people poor. Mortgage interest rates are tied to the cost of money and the government does not have any say in that.
Fixed rate mortgages are tied to the 5 year bond rate which goes up and down every day. 5 year fixed rate mortgages tend to be about 1% higher than the bond rate.
Variable rate mortgages are tied to the Bank overnight rate which is the cost of borrowing short term money.
If interest rates are too high no one will buy houses and banks will not make any money off of mortgages which are a safe investment for them. Inflation goes up if a commodity or service is in demand and has limited supplies of that commodity .
I hope this helps explain things.
Don't believe everything you hear about secret plots and conspiracies.
Rates Interest Mortgage
It seems like Bush is going to give a relief to homeowners by freezing interest rates on subprime mortgages.
| QUOTE |
| WASHINGTON - Hundreds of thousands of strapped homeowners could get some relief from a plan negotiated by the Bush administration to freeze interest rates on subprime mortgages that are scheduled to rise in the coming months. "There is no perfect solution," President Bush said Thursday as he announced an agreement hammered out with the mortgage industry. "The homeowners deserve our help. The steps I've outlined today are a sensible response to a serious challenge." Bush has been accused of moving too slowly to address a crisis that has spread to the broader financial market. But he also was careful not to sound as if he were imposing a government solution and violating his free-market principles. He billed his plan as a voluntary, private-sector arrangement that involves no government money. "We should not bail out lenders, real estate speculators or those made the reckless decision to buy a home they knew they could never afford," Bush said after meeting with industry leaders at the White House. "But there are some responsible homeowners who could avoid foreclosure with some assistance." Bush said 1.2 million people could be eligible for help. But only a fraction will be subject to the rate freeze. Others would get assistance in refinancing with their lenders and moving into loans secured by the Federal Housing Administration, Bush said. Also, the aid will only come to those who ask for it, he said. Thousands of borrowers who are falling behind on their payments have been sent letters about the options, and Bush also urged people to call a new hot line: 1-888-995-HOPE. The announcement followed the news earlier Thursday that home foreclosures surged to an all-time high in the July-September period. The Mortgage Bankers Association reported that the percentage of all mortgages that started the foreclosure process in the third quarter jumped to a record 0.78 percent, surpassing the previous record of 0.65 percent of all mortgages in the second quarter. |
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Mortgage Interest Rates
The real reform needs to be in lending practices, not necessarily in interest rates manipulation. Who is the government really helping here? Bailing out people who made bad decisions isn't helping them - it's helping the lenders who sold them the bad loan in the first place!
Too little, too late, in my opinion.
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Mortgage Interest Rates
Yes I think the Canadaian banks are also guilty of seeting people up in a bad position with mortages of 95 to 100 % of the home value. There is not room for price fluctuation.
It does help the economy and helps people build equity in their homes since they can gt into the markets faster.
I thought interest rates were all linked back to decisions Made by the Bank of Canada who is run y the Government. I also do agree that the government uses the interest rate to help control inflation rates as well as the Canadian economy and rightly so.
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Post Date: 13th Jun, 2008 - 3:08pm / Post ID: #
Mortgage Interest Rates Politics Business Civil & History
I know that interest rates go up and down as the housing market is strong or weak. I was able to get a decent rate of 5.785% on my house. It is a fixed rate for a 30 year term. I am happy with my rate but will think of refinancing if the market for fixed 15 year is around 5% even. I would like to get a rate under 5% but am in no hurry right now.
I think the government can control some of the interest rate but the real trend setter is the federal reserve and the prime rate it charges.
TOPIC: Mortgage Interest Rates