Buy a Home, No Money Down!

When we bought our home no one could get a loan with less than 20% down at any bank...in 1966.

Bought my first home in 1998. The mortgage broker asked whether I could afford 20% down to get a "conventional loan." Wasn't entirely sure what it was at the time--but conventional sounded good--so I did it. No regrets.

It was the low interest rates that spurred lenders to loan, even to non-worthy borrowers

Low interest rates spurred borrowers to borrow. If anything, it would have been a disincentive to lenders, had lenders actually been all that concerned about holding the notes to maturity. They weren't. They were being sold, divided into tranches and sold again. The lenders were profiting from fees and commissions for handling the transaction, not from the paper itself, which barely touched their hot little hands.

Poor credit risks were accepted and financed as a result of government pressure. The risk was not borne by the lenders so heck they didn't give a hoot, recall that they were profiting from fees and commissions, not from the note, which was promptly sold, right along with the risk.

The low interest rates were the result of high demand for treasuries from foreign nations, China for the most part, sending all their dollars back home to roost in treasuries, thereby driving down the yield of the ten year, to which mortgage rates are tied.

Well, so much for attempt #2 to record this sucker all the way through. Program truncated due to unfolding crisis, just my luck.

I'm glad John Stossel's regular weekly programs are on the business channel which sticks to the announced schedule.

One more try in another hour and a half; this time I'll set it and forget it.

That’s why they want everyone’s IRAs and 401ks which ticks me off. I’m not rich, but it’s a decent sum of money at stake if they take it—enough to make me wonder exactly WHAT I would do.

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