A look at where the candidates stand on the sub-prime mortgage meltdown and credit crisis. [Bankrate]

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  1. Daniel-Bham says:

    If there were to be any government intervention into the mess, it would be making Adjustable Rate Mortgages illegal if Federal interest rates are at a determined low point, or at least full disclosure to a potential borrower.

    The primary cause of this mess is lenders pushing ARMs for people who would never be able to afford the payments when the interest rate actually did adjust.

    “Hey the interest rate is the lowest its been in 30 years and will only go up. How would you like to get signed up for an interest rate that will only adjust upwards?”

  2. taka2k7 says:

    1. Bring back the 10% down payment requirement
    2. Full disclosure of all fees/schedules and expected payments
    3. No loans with out proof of ability to repay
    4. People need to cut up their credit cards
    5. Cap rates (APR) for any kind of loan at 25% or lower. No hidden fees, etc.
    6. Real estate agents need to live on a lower commission. 6% of the price is nuts. Maybe 6% for houses under $150K but $10K max after that.

    This consumption on credit society is not sustainable. the fact that 2/3 of the US economy relies on people spending money they don’t have is frankly scary and waay to susceptible to crisis like this.

  3. taka2k7 says:

    Oh yeah, and here’s a relatively easy fix to save a lot of home owners money:

    - Require all banks to accept no fee twice monthly payments on mortgages (split your payment in half and pay twice a month). No additional cost to the home owner and they save a crap load of interest on the back end. Effectively acts like one extra payment a year.
    – You could then restructure the payments to reflect the overall interest savings but also stretch the payments back to the full term, thus lowering monthly payments.