Tam said:
Oldtimer said:
Tam- if you'd watched any of the banking hearings you would know that this was one of the proposals of the bankers/financial world as a way to allow people with homes that are greatly devalued because of the Bush Bust to get refinanced- with a longer term more affordable loan....
The house that was valued at $125,000 may now only be valued at $100,000- so if they refinance- the borrower no longer qualifies for a longer term loan...By allowing them to borrow $125,000 it allows them to qualify for 20-30 year loans at much more affordable payments- thus allowing them to keep their home- and keeping the lending institution from repossessing and owning another unmarketable house- further deflating the market value of housing in the US...
A Win-Win for both- and the country....
If they don't qualify should they be getting, a loan for 125% or maybe a smaller house that they can afford? Isn't that what got the US into this mess in the first place? Banks being forced by the Dems (in the late 90's pre-Bush) with threats of lawsuits to Lower the qualification so that people that couldn't afford a home could magically afford a house twice the size?
And of course Kola comments on how predictable we are and guess who fines a way of bring Bush into this thread. You Oldtimer are the saddest most predictable person on here. :wink:
Freddie Mac announced Wednesday that it would offer loan-to-value ratios on home mortgage refinancings of up to 125 percent for qualified borrowers.
The higher LTV ratio is expected to give homeowners – especially those in markets that have experienced sharp declines in home values -- more options to refinance into mortgages with terms that better position them for long-term homeownership, the company said.
Tam- they already bought the houses, some years ago and some have a lot of equity in them-- but now with the Bush Bust the houses have been devalued- and when the rising rate mortgages kicked couldn't pay for them...
Overvaluing houses was going on all the time during the Bush reign--
illegally....By financing groups and real estate folks that were in cahoots with appraisal firms and getting fraudulent appraisals....
I preferred they gave everyone a chance to have the Banks/courts revalue/negotiate their houses values- like is allowed for multiple owners of houses...But the Repubs killed that bill thinking that while it is alright for folks like John McCain to revalue his 12 houses- it isn't for a single house owner that lives in it.... :roll: :shock: :wink: