Posted on 10/28/2022 11:03:45 AM PDT by EBH
As if the 7% interest rate wasn't enough... (soon to be 12%)
I did that with a new car, but there is no way I could swing that with a house.
I knew a woman who bought a house with a 17% interest rate. Those were the days...(Lucky for her rates did go down and she refinanced... that might not be happening soon with the Biden mashup)
https://www.consumerfinancemonitor.com/2022/10/27/cfpb-responds-to-fifth-circuit-ruling-that-its-funding-mechanism-is-unconstitutional/
“CFPB responds to Fifth Circuit ruling that its funding mechanism is unconstitutional”
Elon Musk is perhaps the richest man in the world. He's certainly up there. And to buy Twitter he needed to get financing. If you can just write checks for the full sale price of houses and not drain your savings away then more power to you. Most people can't. You might think that having a mortgage is a bad financial move. Being a permanent renter isn't better.
don’t really need to study the fine print of a home mortgage: they all pretty much sum up as “You don’t pay, you don’t stay.” just follow that simple rule and you’ll be fine ...
Something like this needs to happen to the CDC. It’s not a government agency and had proven itself to be traitorously aligned with foreign interests.
Fascism: A system in which businesses are privately owned, but government micro-regulates them to serve government ends. The entire Antifa thing is a fraud; the Left accuses others of being what they are themselves.
I was a mtg exec for 40 years, and every regulatory agency and every state and local law that were in effect before the CFPB are still in effect. The CFPB did not replace one bureaucrat, it just added thousands more.
Because mtg companies were FORCING people to take home loans without disclosing ANYTHING about the debt obligation./sarc
Top credit-rating agencies refused to rate residential mortgage-backed securities pools containing loans that originated in Georgia, which had a chilling effect on the MBS market.
So a situation where banks refused to play be abusive state laws can be extrapolated to a situation where a regulatory agency's powers are limited by a court. That's a stretch.
There remains other financial regulations relating to mortgages, on the books and preceding the CFPB.
Nulling the unconstitutional power of the CFPB is a good think, and the mortgage industry will not collapse, it will dust off the regs that they bent to before the CFPB.
I thought Mulvaney destroyed that.
Damn, a governmental bureau really is impossible to kill.
I think you may be confusing terms.
A balloon loan is one where you pay very little principal over the life of the loan, but end up having to pay the vast majority of the principal at the maturity date in a single lump sum.
What you’re describing is an Adjustable Rate Mortgage (ARM), where the interest rate is fixed for a period of time (usually 5, 7, or 10 years), after which it fluctuates based in the current prime rate on a periodic basis (usually every 6 months) until it’s paid off.
They were popular when interest rates were consistently trending downward over several years; it was very common in my loan of work to see people refinance their ARM into another ARM so they they renew the fixed rate period.
Now? You’d have to be pretty crazy to go for an ARM.
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