Low Mortgage Interest Rates For Everyone!!!: U.S. May Back Refinance Plan for Mortgages

[CA renter]

[quote=briansd1][quote=flu]This must suck donkey butt for folks who were responsible savers trying to save up for a home all these years. It would be ironic if these low interests rates were available only to people upside down.[/quote]

Don’t be bitter. Bitterness causes ulcers and activate enzymes that can cause cancer.

But seriously, monetary policy (low interest rates) is trickle down economics. The liquidity benefits mostly the banks, corporations and well-to-do individuals who need it least.

We need other policies to increase cash flow for those who are suffering most.

As sdr said, reducing mortgage interest rates at the bottom end will unleash billions of dollars to help the economy.

If a homeowners had been faithfully paying his mortgage at 7% (can’t refinance for some reason). Why not reduce the rate to 4%?

The banks and corporations got their bailouts… now,let’s help the people who need it most. It’s about helping the economy as a whole, right now.[/quote]

Those billions of dollars were already unleashed since so many people haven’t been paying ANYTHING on their mortgages; some haven’t been paying for years.

I’m just trying to figure out what they are going to do to the current bondholders who have non-callable bonds. Are they going to demand these bondholders take a haircut, even though these bonds are guaranteed to pay a certain rate? How will the compensate these bondholders for the losses they are going to take on the (as yet, unrealized) cap gains?

If they do this, do they have any idea what it will do to private demand for govt-backed or GSE bonds?

IMHO, as a bondholder, I would view this is a type of default.

[joec]

I whole heartily support this proposal and make it available to people who HAVE been paying their mortgages. I can understand how some people may think it’s unfair, but the whole banking system was only helping the big banks and this would go a long way to have people spend and put dollars back in the economy.

No reason why someone who has been making payments shouldn’t also get a LOWER rate when the government (the people really) own the loan to begin with which will reduce their chance of defaulting as a start and also put another 3% of payment savings in their pockets as well as spending. I know I have a few things on my buy list already if this flies.

I have thought about this plan numerous times as well in the past, but was wondering would bond holders who are getting paid on that 7% bond going to complain? I assume they would be the “LOSER” in this type of deal perhaps if their higher interest rate bond get’s called/refinanced.

Being self-employed now makes me biased since our chances of refinancing are low which I feel is unfair when you have never missed any payments ever.

[joec]

I whole heartily support this proposal and make it available to people who HAVE been paying their mortgages. I can understand how some people may think it’s unfair, but the whole banking system was only helping the big banks and this would go a long way to have people spend and put dollars back in the economy.

No reason why someone who has been making payments shouldn’t also get a LOWER rate when the government (the people really) own the loan to begin with which will reduce their chance of defaulting as a start and also put another 3% of payment savings in their pockets as well as spending. I know I have a few things on my buy list already if this flies.

I have thought about this plan numerous times as well in the past, but was wondering would bond holders who are getting paid on that 7% bond going to complain? I assume they would be the “LOSER” in this type of deal perhaps if their higher interest rate bond get’s called/refinanced.

Being self-employed now makes me biased since our chances of refinancing are low which I feel is unfair when you have never missed any payments ever.

[joec]

I whole heartily support this proposal and make it available to people who HAVE been paying their mortgages. I can understand how some people may think it’s unfair, but the whole banking system was only helping the big banks and this would go a long way to have people spend and put dollars back in the economy.

No reason why someone who has been making payments shouldn’t also get a LOWER rate when the government (the people really) own the loan to begin with which will reduce their chance of defaulting as a start and also put another 3% of payment savings in their pockets as well as spending. I know I have a few things on my buy list already if this flies.

I have thought about this plan numerous times as well in the past, but was wondering would bond holders who are getting paid on that 7% bond going to complain? I assume they would be the “LOSER” in this type of deal perhaps if their higher interest rate bond get’s called/refinanced.

Being self-employed now makes me biased since our chances of refinancing are low which I feel is unfair when you have never missed any payments ever.

[joec]

I whole heartily support this proposal and make it available to people who HAVE been paying their mortgages. I can understand how some people may think it’s unfair, but the whole banking system was only helping the big banks and this would go a long way to have people spend and put dollars back in the economy.

No reason why someone who has been making payments shouldn’t also get a LOWER rate when the government (the people really) own the loan to begin with which will reduce their chance of defaulting as a start and also put another 3% of payment savings in their pockets as well as spending. I know I have a few things on my buy list already if this flies.

I have thought about this plan numerous times as well in the past, but was wondering would bond holders who are getting paid on that 7% bond going to complain? I assume they would be the “LOSER” in this type of deal perhaps if their higher interest rate bond get’s called/refinanced.

Being self-employed now makes me biased since our chances of refinancing are low which I feel is unfair when you have never missed any payments ever.

[joec]

I whole heartily support this proposal and make it available to people who HAVE been paying their mortgages. I can understand how some people may think it’s unfair, but the whole banking system was only helping the big banks and this would go a long way to have people spend and put dollars back in the economy.

No reason why someone who has been making payments shouldn’t also get a LOWER rate when the government (the people really) own the loan to begin with which will reduce their chance of defaulting as a start and also put another 3% of payment savings in their pockets as well as spending. I know I have a few things on my buy list already if this flies.

I have thought about this plan numerous times as well in the past, but was wondering would bond holders who are getting paid on that 7% bond going to complain? I assume they would be the “LOSER” in this type of deal perhaps if their higher interest rate bond get’s called/refinanced.

Being self-employed now makes me biased since our chances of refinancing are low which I feel is unfair when you have never missed any payments ever.

[briansd1]

CA renter, there are millions of Americans who are stuck in high-interest rates loans they can’t refinance, but they continue to pay diligently every month.

Lowering their interest rates will add confidence and improve the economy, and free up disposable income.

The mechanics of doing so have to be worked out. The banks, corporations, and those with wealth and good credit have seen their interest expenses slashed to very little already. That has stabilized the economy and the financial sector and stopped the freefall.

Let’s go a step further and provide relief to those who need relief the most (those who are stuck servicing high interest rate loans).

[briansd1]

CA renter, there are millions of Americans who are stuck in high-interest rates loans they can’t refinance, but they continue to pay diligently every month.

Lowering their interest rates will add confidence and improve the economy, and free up disposable income.

The mechanics of doing so have to be worked out. The banks, corporations, and those with wealth and good credit have seen their interest expenses slashed to very little already. That has stabilized the economy and the financial sector and stopped the freefall.

Let’s go a step further and provide relief to those who need relief the most (those who are stuck servicing high interest rate loans).

[briansd1]

CA renter, there are millions of Americans who are stuck in high-interest rates loans they can’t refinance, but they continue to pay diligently every month.

Lowering their interest rates will add confidence and improve the economy, and free up disposable income.

The mechanics of doing so have to be worked out. The banks, corporations, and those with wealth and good credit have seen their interest expenses slashed to very little already. That has stabilized the economy and the financial sector and stopped the freefall.

Let’s go a step further and provide relief to those who need relief the most (those who are stuck servicing high interest rate loans).

[briansd1]

CA renter, there are millions of Americans who are stuck in high-interest rates loans they can’t refinance, but they continue to pay diligently every month.

Lowering their interest rates will add confidence and improve the economy, and free up disposable income.

The mechanics of doing so have to be worked out. The banks, corporations, and those with wealth and good credit have seen their interest expenses slashed to very little already. That has stabilized the economy and the financial sector and stopped the freefall.

Let’s go a step further and provide relief to those who need relief the most (those who are stuck servicing high interest rate loans).

[briansd1]

CA renter, there are millions of Americans who are stuck in high-interest rates loans they can’t refinance, but they continue to pay diligently every month.

Lowering their interest rates will add confidence and improve the economy, and free up disposable income.

The mechanics of doing so have to be worked out. The banks, corporations, and those with wealth and good credit have seen their interest expenses slashed to very little already. That has stabilized the economy and the financial sector and stopped the freefall.

Let’s go a step further and provide relief to those who need relief the most (those who are stuck servicing high interest rate loans).

[patientrenter]

“Let’s go a step further and provide relief to those who need relief the most ”

Yep, I vote for relief for people who need it the most – the renters. We should look up the highest amount of ‘relief’ provided to a single homeowner by this ass-backwards proposal, and then match that amount for every renter out there.

Who should pay for this new renters’ subsidy? Well, I vote for homeowners. Create a new tax on them, to subsidize renters.

All this is totally nonsensical. Many of our economic problems arose from spending too much on housing, with too much financing, at prices that were too high. This proposal simply funnels yet more subsidies to people who engaged in all these behaviors. Whatever you tax, you get less of, and whatever you subsidize, you get more of.

[patientrenter]

“Let’s go a step further and provide relief to those who need relief the most ”

Yep, I vote for relief for people who need it the most – the renters. We should look up the highest amount of ‘relief’ provided to a single homeowner by this ass-backwards proposal, and then match that amount for every renter out there.

Who should pay for this new renters’ subsidy? Well, I vote for homeowners. Create a new tax on them, to subsidize renters.

All this is totally nonsensical. Many of our economic problems arose from spending too much on housing, with too much financing, at prices that were too high. This proposal simply funnels yet more subsidies to people who engaged in all these behaviors. Whatever you tax, you get less of, and whatever you subsidize, you get more of.

[patientrenter]

“Let’s go a step further and provide relief to those who need relief the most ”

Yep, I vote for relief for people who need it the most – the renters. We should look up the highest amount of ‘relief’ provided to a single homeowner by this ass-backwards proposal, and then match that amount for every renter out there.

Who should pay for this new renters’ subsidy? Well, I vote for homeowners. Create a new tax on them, to subsidize renters.

All this is totally nonsensical. Many of our economic problems arose from spending too much on housing, with too much financing, at prices that were too high. This proposal simply funnels yet more subsidies to people who engaged in all these behaviors. Whatever you tax, you get less of, and whatever you subsidize, you get more of.

[patientrenter]

“Let’s go a step further and provide relief to those who need relief the most ”

Yep, I vote for relief for people who need it the most – the renters. We should look up the highest amount of ‘relief’ provided to a single homeowner by this ass-backwards proposal, and then match that amount for every renter out there.

Who should pay for this new renters’ subsidy? Well, I vote for homeowners. Create a new tax on them, to subsidize renters.

All this is totally nonsensical. Many of our economic problems arose from spending too much on housing, with too much financing, at prices that were too high. This proposal simply funnels yet more subsidies to people who engaged in all these behaviors. Whatever you tax, you get less of, and whatever you subsidize, you get more of.

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