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It's truly sad that people are losing their homes- for whatever reason. But while we're crying about the 1 or 2 million home owners that might lose their homes- let's not forget that there are currently 19 Million unoccupied homes on the market.
Wanna know what will happen when Congress starts buying up some of these homes, and bailing out some of the home owners??
Prices won't fall and the 19 million homes that are currently on the market aren't going to sell. (Even worse the crime rate in these neighborhoods will shoot up- as brand new houses get raided for fixtures, or just for the fun of it.)
I do feel bad for the people that will have upside down mortgages if the Government doesn't step in- but there is no guarantee that prices will always go up for homes. Home values might (for the most part) be more stable than the stock market, but for families that are actually living in the home, it's not an investment, it's a house. Let the prices fall, people that can actually afford to will start buying the homes- and with the rise in demand, the cost of a homes will slowly go back up.
Wanna know what will happen when Congress starts buying up some of these homes, and bailing out some of the home owners??
Prices won't fall and the 19 million homes that are currently on the market aren't going to sell. (Even worse the crime rate in these neighborhoods will shoot up- as brand new houses get raided for fixtures, or just for the fun of it.)
I do feel bad for the people that will have upside down mortgages if the Government doesn't step in- but there is no guarantee that prices will always go up for homes. Home values might (for the most part) be more stable than the stock market, but for families that are actually living in the home, it's not an investment, it's a house. Let the prices fall, people that can actually afford to will start buying the homes- and with the rise in demand, the cost of a homes will slowly go back up.
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The individuals with mortgages that are upside down with no escape by selling or refinancing will lose their homes. However, a larger group of homeowners with variable rate mortgages will be able to refinance into a lower fix rate 15 year mortgage. 15 year mortgage is preferred because the home will be paid off sooner.
In my opinion it won't help America. Already there is talk of the Government "help" going to people's 2nd home, 3rd, 4th, and even their vacation home. Now I could totally be wrong, but it seems to me like people that have a 2nd home, are either extremely stupid, or better off than the rest of America. So in my own opinion, I think most of the money allocated to helping home owners will end up missing or back in the rich people's pockets.
Mortgage rate meaning the cost of the home or the interest rate?
"The individuals with mortgages that are upside down with no escape by selling or refinancing will lose their homes. However, a larger group of homeowners with variable rate mortgages will be able to refinance into a lower fix rate 15 year mortgage. 15 year mortgage is preferred because the home will be paid off sooner."
By the time I was 14 I knew what an ARM mortgage was and I knew it was a bad idea- granted I'm obsessed with economics and finances- but you'd have to be an idiot to sign a loan like that (unless you were planning on a quick turn over.) The Feds can say what they want about bailing out a select few home owners- but what they are not saying is that we will all be paying for this with higher taxes. What's going to happen when the Feds are done bailing out home owners and start raising taxes? The ones that have barely been scraping by aren't going to make it with higher taxes.
And why would you bailout people that were stupid enough to sign an ARM loan? I realize that some of them weren't informed- but it's a HOME! This is probably the biggest purchase any of us will ever make- why would they not research it more? In my opinion, the people that signed an ARM loan and now need help are just stupid with money. Changing it to a fixed rate 15 year mortgage isn't going to change that.