Creative Advertising? Heck No, It's False Advertising (MORTGAGES)

http://realtytimes.com/rtcpages/20060622_falseads.htm ^ | 6-22-06 | Henry Savage

[Hydroshock]

ping

[rwilson99]

When bait and switch is encouraged in the Real Estate business by the DOJ in the Real Estate Brokerage business what do you expect?

The mortgage guys promoting these programs reek of slime in their radio ads.

Ultimtely it's the greed of individual consumers to get something for nothing that gets them into trouble with negative amortization loans.

[Hydroshock]

Like it or hate the credit industry is out of control. The leaning standards are the loosest I have ever seen them. As rates keep going up I expect to see more of this type of shananagans from them.

[BikerGold]

Prov. 10:21The lips of the righteous feed many: but fools die for want of wisdom.

22The blessing of the LORD, it maketh rich, and he addeth no sorrow with it.

Bad thing about prosperity is that folks blow off God and tell America to kiss off...

[wizr]

5 to 7 per cent interest was fair when homes cost $20,000. To me, those interest rates are usurious considering many homes cost at least "$500,000.

[Hydroshock]

I have found (the hard way at times) if you stay close to God's word and commandments you have an easier, happier, more prosperous life. See my tag line to get an idea on my thoughts on debt.

[jiggyboy]

Yesterday's MPAA numbers gave the average for a one-year ARM as 6.22%; their average for a 30-year fixed was 6.72%. Anybody getting an ARM with the spread that small richly deserves their eventual bankruptcy.

[Hydroshock]

That is the one think that troubles me and makes me thing the foundation of this mess is shaky. Rates have been at historic lows but people are still getting these risky loans. I would never buy a house I could nto afford 125% of the total payment, including taxes and insurance. And put at least 10% down on a 30 year fixed note.

[brownsfan]

"5 to 7 per cent interest was fair when homes cost $20,000. To me, those interest rates are usurious considering many homes cost at least "$500,000. "

Huh? So if I'm a lender, and I write 25 loans for $20,000 at 6% that's ok. But if I write one loan for $500,000 at 6%, thats usury?

The rate is the rate. I don't see where the amount principle matters.

[L98Fiero]

I dub thee Willie Green II. May your reign be long and bountiful.

[Hydroshock]

Who?

[L98Fiero]

Before you came along, he posted the articles like this. He's gone now and you are more than worthy to take his spot.

[dakine]

ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ..........

[doc30]

Ultimtely it's the greed of individual consumers to get something for nothing that gets them into trouble with negative amortization loans.

I'm surprised they don't have prepayment penalties in these loans, too. That way, if you find you are getting screwed, you can't refinance your way out of it without paying thousands of dollars in penalties, too.

[doc30]

Sadly, with the way home prices have been skyrocketing, it would be physically impossible for most first time home buyers to come up with that 10% down. They could never save at a rate that would match property appreciation. I was in that situation and needed a 100% down loan. After 2 years, I had the PMI dropped because the property value appreciated almost 50%.

[VegasCowboy]

Are you ok earning 5% on your money market account? That's close to the current market rate. So do you think banks should charge you less for a home loan then they are paying you on your deposits?

No bank would survive if they did that. In fact, the FDIC would shut them down. The interest rate market is not controlled by the individual banks.

It doesn't get much better for consumers than the current interest rate environment. You can lock in a 30 rate of under 7% and earn 5% on a daily basis. Enjoy it, because the spread is usually closer to 4%.

[wizr]

Nope. Got no MMA. Don't owe anyone $500,000 bucks. I just think that all these people, that think that life is wonderful because they are making so much money, don't understand that the dollar value has been made worthless.

[goldstategop]

There always is a catch to mortgage payments. Like for example, an unpleasant balloon payment that's due. The buyer still has to watch out for the fine print to make sure there's not a ticking time bomb hidden inside the mortgage agreement designed to explode at the worst possible time. Do your homework, compare offers and shop around for the best deal.

(Denny Crane: "Every one should carry a gun strapped to their waist. We need more - not less guns.")