[Deal Hunter]

*sigh* HLS, I know you are the resident mortgage guru on this forum, but please don't condescend. You're not the only one who knows the exact difference between a payment recast and principal reamortization.

You said, "don't believe that there is a lender on the planet that doesn't credit extra principal monthly…" And you are right. In the CC example I gave earlier, the disclosure is clear. Any payments to principal are credited each time the payment is made. However, the principal amount from which the interest is determined is calculated on the loan's principal balance on annual anniversary date of the loan. 

I point this out because things like this is what makes these loans suck.  I happen to have found this feature in a Chevy Chase loan I am helping a distressed homeowner modify.  Believe me, I have learned more about mortgage loan details in the past 6 months than I care to know about for the rest of my life.  It's the bad information that no one tells you about that is the danger these days.

[Deal Hunter]

Hipmatt said,

"Not that its gonna happen, but I think that we need to end the home owner deductions. and /or give deductions to those who rent.(shelter is shelter) And stop taxes on money made in interest, investments, or dividends."

This is precisely what is outlined in Bush's Tax Reform Panel that was conducted in 2005. (http://www.taxreformpanel.gov/)

Part of the reform includes the elimination of the Mortgage Interest Deduction for homeowners as well as privitization of entitlements such as social security retirement.  Taxation of investment income would be effectively stopped.

This is actually pretty close to happening in 2008.  Bush's last budget had a short fall of about $90 billion.  The potential income from cutting the mortgage int deductions is $94 billion (according to the Tax Reform panel).  Is this a coincedence?  I think not!

So few are paying attention (and the panel and Bush's last budget come to the public's attention 3 whole years apart), but it really smells of a set up.  All of the budget shortfalls and the stimulus to the housing market somehow can be addressed by implementing the advisements of the Tax Reform Panel of 2005! 

 

 

[Deal Hunter]

Hipmatt said,

"Not that its gonna happen, but I think that we need to end the home owner deductions. and /or give deductions to those who rent.(shelter is shelter) And stop taxes on money made in interest, investments, or dividends."

This is precisely what is outlined in Bush's Tax Reform Panel that was conducted in 2005. (http://www.taxreformpanel.gov/)

Part of the reform includes the elimination of the Mortgage Interest Deduction for homeowners as well as privitization of entitlements such as social security retirement.  Taxation of investment income would be effectively stopped.

This is actually pretty close to happening in 2008.  Bush's last budget had a short fall of about $90 billion.  The potential income from cutting the mortgage int deductions is $94 billion (according to the Tax Reform panel).  Is this a coincedence?  I think not!

So few are paying attention (and the panel and Bush's last budget come to the public's attention 3 whole years apart), but it really smells of a set up.  All of the budget shortfalls and the stimulus to the housing market somehow can be addressed by implementing the advisements of the Tax Reform Panel of 2005! 

 

 

[Deal Hunter]

Hipmatt said,

"Not that its gonna happen, but I think that we need to end the home owner deductions. and /or give deductions to those who rent.(shelter is shelter) And stop taxes on money made in interest, investments, or dividends."

This is precisely what is outlined in Bush's Tax Reform Panel that was conducted in 2005. (http://www.taxreformpanel.gov/)

Part of the reform includes the elimination of the Mortgage Interest Deduction for homeowners as well as privitization of entitlements such as social security retirement.  Taxation of investment income would be effectively stopped.

This is actually pretty close to happening in 2008.  Bush's last budget had a short fall of about $90 billion.  The potential income from cutting the mortgage int deductions is $94 billion (according to the Tax Reform panel).  Is this a coincedence?  I think not!

So few are paying attention (and the panel and Bush's last budget come to the public's attention 3 whole years apart), but it really smells of a set up.  All of the budget shortfalls and the stimulus to the housing market somehow can be addressed by implementing the advisements of the Tax Reform Panel of 2005! 

 

 

[Deal Hunter]

Hipmatt said,

"Not that its gonna happen, but I think that we need to end the home owner deductions. and /or give deductions to those who rent.(shelter is shelter) And stop taxes on money made in interest, investments, or dividends."

This is precisely what is outlined in Bush's Tax Reform Panel that was conducted in 2005. (http://www.taxreformpanel.gov/)

Part of the reform includes the elimination of the Mortgage Interest Deduction for homeowners as well as privitization of entitlements such as social security retirement.  Taxation of investment income would be effectively stopped.

This is actually pretty close to happening in 2008.  Bush's last budget had a short fall of about $90 billion.  The potential income from cutting the mortgage int deductions is $94 billion (according to the Tax Reform panel).  Is this a coincedence?  I think not!

So few are paying attention (and the panel and Bush's last budget come to the public's attention 3 whole years apart), but it really smells of a set up.  All of the budget shortfalls and the stimulus to the housing market somehow can be addressed by implementing the advisements of the Tax Reform Panel of 2005! 

 

 

[Deal Hunter]

Hipmatt said,

"Not that its gonna happen, but I think that we need to end the home owner deductions. and /or give deductions to those who rent.(shelter is shelter) And stop taxes on money made in interest, investments, or dividends."

This is precisely what is outlined in Bush's Tax Reform Panel that was conducted in 2005. (http://www.taxreformpanel.gov/)

Part of the reform includes the elimination of the Mortgage Interest Deduction for homeowners as well as privitization of entitlements such as social security retirement.  Taxation of investment income would be effectively stopped.

This is actually pretty close to happening in 2008.  Bush's last budget had a short fall of about $90 billion.  The potential income from cutting the mortgage int deductions is $94 billion (according to the Tax Reform panel).  Is this a coincedence?  I think not!

So few are paying attention (and the panel and Bush's last budget come to the public's attention 3 whole years apart), but it really smells of a set up.  All of the budget shortfalls and the stimulus to the housing market somehow can be addressed by implementing the advisements of the Tax Reform Panel of 2005! 

 

 

[Deal Hunter]

We all have nothing to worry about. The U.S. Dollar is the world’s reserve currency. It is the standard by which the world operates business. We can rest easy because of the respect and reverence the world has for our Dollar.

Now, if only Iran would shut up about possibly selling their oil in exchange for Euro, we could relax more and go back to business as usual. What, Iran hasn’t said anything? Well, not directly. However, has anyone listened in on any Hugo Chavez speaches lately?

But I digress. Please, relax, everyone. Go back to your $8 lattes bought on your Capital One Master Cards. Everything is fine. The U.S. Dollar is still the world’s reserve currency.

[Deal Hunter]

We all have nothing to worry about. The U.S. Dollar is the world’s reserve currency. It is the standard by which the world operates business. We can rest easy because of the respect and reverence the world has for our Dollar.

Now, if only Iran would shut up about possibly selling their oil in exchange for Euro, we could relax more and go back to business as usual. What, Iran hasn’t said anything? Well, not directly. However, has anyone listened in on any Hugo Chavez speaches lately?

But I digress. Please, relax, everyone. Go back to your $8 lattes bought on your Capital One Master Cards. Everything is fine. The U.S. Dollar is still the world’s reserve currency.

[Deal Hunter]

We all have nothing to worry about. The U.S. Dollar is the world’s reserve currency. It is the standard by which the world operates business. We can rest easy because of the respect and reverence the world has for our Dollar.

Now, if only Iran would shut up about possibly selling their oil in exchange for Euro, we could relax more and go back to business as usual. What, Iran hasn’t said anything? Well, not directly. However, has anyone listened in on any Hugo Chavez speaches lately?

But I digress. Please, relax, everyone. Go back to your $8 lattes bought on your Capital One Master Cards. Everything is fine. The U.S. Dollar is still the world’s reserve currency.

[Deal Hunter]

We all have nothing to worry about. The U.S. Dollar is the world’s reserve currency. It is the standard by which the world operates business. We can rest easy because of the respect and reverence the world has for our Dollar.

Now, if only Iran would shut up about possibly selling their oil in exchange for Euro, we could relax more and go back to business as usual. What, Iran hasn’t said anything? Well, not directly. However, has anyone listened in on any Hugo Chavez speaches lately?

But I digress. Please, relax, everyone. Go back to your $8 lattes bought on your Capital One Master Cards. Everything is fine. The U.S. Dollar is still the world’s reserve currency.

[Deal Hunter]

We all have nothing to worry about. The U.S. Dollar is the world’s reserve currency. It is the standard by which the world operates business. We can rest easy because of the respect and reverence the world has for our Dollar.

Now, if only Iran would shut up about possibly selling their oil in exchange for Euro, we could relax more and go back to business as usual. What, Iran hasn’t said anything? Well, not directly. However, has anyone listened in on any Hugo Chavez speaches lately?

But I digress. Please, relax, everyone. Go back to your $8 lattes bought on your Capital One Master Cards. Everything is fine. The U.S. Dollar is still the world’s reserve currency.

[Deal Hunter]

Chevy Chase was selling loans in 2005 that re-am’d only ONCE a year. The teaser rate was 1% over CODI. If you wanted the option of a re-am’ing more often (like every month) you had to pick the teaser rate of 2% over CODI. It was in the fine print underneath the fine print. And yes, it was insanity.

The lender is obligated by law to disclose every aspect of the loan to the borrower – including the re-am period and exact amount of each payment that is credited to interest and principal over the life of the loan. In fact, the escrow can’t close until borrower acknowledges receipt of the Truth in lending disclosure.

OP’s questions are straight-forward enough for a reliable answer from the lender. (I hope.)

[Deal Hunter]

Chevy Chase was selling loans in 2005 that re-am’d only ONCE a year. The teaser rate was 1% over CODI. If you wanted the option of a re-am’ing more often (like every month) you had to pick the teaser rate of 2% over CODI. It was in the fine print underneath the fine print. And yes, it was insanity.

The lender is obligated by law to disclose every aspect of the loan to the borrower – including the re-am period and exact amount of each payment that is credited to interest and principal over the life of the loan. In fact, the escrow can’t close until borrower acknowledges receipt of the Truth in lending disclosure.

OP’s questions are straight-forward enough for a reliable answer from the lender. (I hope.)

[Deal Hunter]

Chevy Chase was selling loans in 2005 that re-am’d only ONCE a year. The teaser rate was 1% over CODI. If you wanted the option of a re-am’ing more often (like every month) you had to pick the teaser rate of 2% over CODI. It was in the fine print underneath the fine print. And yes, it was insanity.

The lender is obligated by law to disclose every aspect of the loan to the borrower – including the re-am period and exact amount of each payment that is credited to interest and principal over the life of the loan. In fact, the escrow can’t close until borrower acknowledges receipt of the Truth in lending disclosure.

OP’s questions are straight-forward enough for a reliable answer from the lender. (I hope.)

[Deal Hunter]

Chevy Chase was selling loans in 2005 that re-am’d only ONCE a year. The teaser rate was 1% over CODI. If you wanted the option of a re-am’ing more often (like every month) you had to pick the teaser rate of 2% over CODI. It was in the fine print underneath the fine print. And yes, it was insanity.

The lender is obligated by law to disclose every aspect of the loan to the borrower – including the re-am period and exact amount of each payment that is credited to interest and principal over the life of the loan. In fact, the escrow can’t close until borrower acknowledges receipt of the Truth in lending disclosure.

OP’s questions are straight-forward enough for a reliable answer from the lender. (I hope.)

[Author]

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