Posted on 06/21/2013 7:56:08 PM PDT by NaturalBornConservative
It's because of all earthquakes and hurricanes you get.
It isn’t a direct correlation like you might think. If you build your long-term reserves based on a projected 5% average return for safe investments (U.S. Treasuries, for example) and the rate declines to 2% for a few years, then you can never really go back and make up the “lost time” when your reserves were under-performing.
Keep in mind that Bernanke’s plan is not to “keep interest rates down.” Interest rates are a tool to accomplish a broader objective, which is tied to the core mandates of the Federal Reserve: stabilize the value of the U.S. dollar while maximizing U.S. employment at the same time. It’s a balancing act in any age, but these days it is much more difficult.
What do you expect to pay?
Most people with mortgages are required to have insurance.
With a 30% discount, MetLife proposed $866. Nationwide did it for $554. Let’s just say, Snoopy (the MetLife mascot) wasn’t on my side.
Isn't that a typical average? $500 - $650 for midwest states?
I don’t know about the Midwest, but that’s about what it was here in 2006. I deal with a lot of people and I have seen some in the same area as me paying $1,200 to $1,900, and asked them why they are paying so much. Even my next door neighbor was paying over $1,000. It’s a question I bring up in casual conversation. I discussed it with my parents who live about 15 miles away, and their home is worth more than twice mine, and even they said I was paying more than them. So there’s definitely some abuse going on.
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