good point SDR – there will always be some combination of debt relief and subsidized interest rates that will allow all the FBs to remain in their homes – perhaps there will be a sliding scale based on income – the lower the income, the more relief / subsidy the FB qualifies for
the effect of stretching the loan past 50 yrs is minimal – the Japanese went down this road and were offering 100 yr mortgages at the height of their mania
payments on $400K @ 4.5% (assuming govt subsidized rate):
30 yr $2026
50 yr $1677
75 yr $1553
100 yr $1516
$400K on 30 yr fixed, fully amortized at 5.75% is $2334 / month
