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patientrenter
Participantnostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.
I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.
Patient renter in OC
patientrenter
Participantnostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.
I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.
Patient renter in OC
patientrenter
Participantnostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.
I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.
Patient renter in OC
patientrenter
Participantbubba, if borrowers can get better-than-market deals from banks by walking away from debts in bad times while paying relatively low interest rates in good times, then banks have to scr*w their depositors to make up for the losses. Banks are just the intermediary – borrowers are scr*wing the savers.
Patient renter in OC
patientrenter
Participantbubba, if borrowers can get better-than-market deals from banks by walking away from debts in bad times while paying relatively low interest rates in good times, then banks have to scr*w their depositors to make up for the losses. Banks are just the intermediary – borrowers are scr*wing the savers.
Patient renter in OC
patientrenter
Participantbubba, if borrowers can get better-than-market deals from banks by walking away from debts in bad times while paying relatively low interest rates in good times, then banks have to scr*w their depositors to make up for the losses. Banks are just the intermediary – borrowers are scr*wing the savers.
Patient renter in OC
patientrenter
Participantbubba, if borrowers can get better-than-market deals from banks by walking away from debts in bad times while paying relatively low interest rates in good times, then banks have to scr*w their depositors to make up for the losses. Banks are just the intermediary – borrowers are scr*wing the savers.
Patient renter in OC
patientrenter
Participantbubba, if borrowers can get better-than-market deals from banks by walking away from debts in bad times while paying relatively low interest rates in good times, then banks have to scr*w their depositors to make up for the losses. Banks are just the intermediary – borrowers are scr*wing the savers.
Patient renter in OC
patientrenter
Participant“If there is no issue at all with walking out on a loan (besides a hit on credit), then theoretically why not purchase a home at 100% financing anytime in the cycle, walk away when you cannot afford it and save enough cash to buy a home for cash in the future? ”
SD R, I wouldn’t call this a ridiculous extreme at all, except that one should only do this in a rapidly rising market. I don’t approve of it morally, and have never done it, but it’s the most rational selfish homebuyer strategy in a system that gives big incentives to maximize borrowings.
Patient renter in OC
patientrenter
Participant“If there is no issue at all with walking out on a loan (besides a hit on credit), then theoretically why not purchase a home at 100% financing anytime in the cycle, walk away when you cannot afford it and save enough cash to buy a home for cash in the future? ”
SD R, I wouldn’t call this a ridiculous extreme at all, except that one should only do this in a rapidly rising market. I don’t approve of it morally, and have never done it, but it’s the most rational selfish homebuyer strategy in a system that gives big incentives to maximize borrowings.
Patient renter in OC
patientrenter
Participant“If there is no issue at all with walking out on a loan (besides a hit on credit), then theoretically why not purchase a home at 100% financing anytime in the cycle, walk away when you cannot afford it and save enough cash to buy a home for cash in the future? ”
SD R, I wouldn’t call this a ridiculous extreme at all, except that one should only do this in a rapidly rising market. I don’t approve of it morally, and have never done it, but it’s the most rational selfish homebuyer strategy in a system that gives big incentives to maximize borrowings.
Patient renter in OC
patientrenter
Participant“If there is no issue at all with walking out on a loan (besides a hit on credit), then theoretically why not purchase a home at 100% financing anytime in the cycle, walk away when you cannot afford it and save enough cash to buy a home for cash in the future? ”
SD R, I wouldn’t call this a ridiculous extreme at all, except that one should only do this in a rapidly rising market. I don’t approve of it morally, and have never done it, but it’s the most rational selfish homebuyer strategy in a system that gives big incentives to maximize borrowings.
Patient renter in OC
patientrenter
Participant“If there is no issue at all with walking out on a loan (besides a hit on credit), then theoretically why not purchase a home at 100% financing anytime in the cycle, walk away when you cannot afford it and save enough cash to buy a home for cash in the future? ”
SD R, I wouldn’t call this a ridiculous extreme at all, except that one should only do this in a rapidly rising market. I don’t approve of it morally, and have never done it, but it’s the most rational selfish homebuyer strategy in a system that gives big incentives to maximize borrowings.
Patient renter in OC
December 1, 2007 at 1:38 AM in reply to: Someone please explain this rate lock thing to me!!! #106137patientrenter
ParticipantXBox, I can’t answer your excellent question about the legal power government has to modify private contracts. But on the subject of destroying investor appetite for future home loans, this can be mitigated in two ways:
1. For non-securitized loans made by banks, lower fed funds rate to increase overall bank profits and thereby compensate banks for the loss of future higher interest income on existing ARM loans that were supposed to reset.
2. For future securitized loans, offer (per Bernanke) government guarantees of repayment to investors on a borrower default.
Patient renter in OC
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