Another Math Problem

SEEMEFIRST
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Edited Date/Time 1/19/2012 10:39am
75 billion divided by 8 million.

That is the amount per mortgage Obama's new housing bailout package will net.
If you are upside down on your mortgage, and the value of your home is no longer what you owe, is this going to help?
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Rooster
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2/18/2009 12:28pm
$9,375.00 per mortgage.

How much of a handout do you want?
SEEMEFIRST
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Arlington, TX US
2/18/2009 12:37pm
Rooster wrote:
$9,375.00 per mortgage.

How much of a handout do you want?
I've been paying my mortgage every month for the last 12 years, they have no desire to help out the folks who are doing it right.

Back to the point. If you signed a ridiculous contract, and your monthly payment keeps growing, but your income stays the same, and the market is such that your house is worth 1/2 of what you owe on it, is that 9 grand going to make that much of a difference?

I guess it might bolster the fianance companies, which would be good I guess, but what will it do for the homeowner?
Rooster
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2/18/2009 1:25pm
You've got me? I've held off buying a house for the last decade because the prices were out of control. I simply didn't see the value and foresaw a decline.

Watch what happens when interest rates start to climb like they did in the early 80's. I still remember people getting mortgages at nearly 20% interest. What's the payment on a $250,000 mortgage at 19%. Don't say it can't happen. To spur savings you'll need to offer an interest rate return that provides incentive to put your money in a bank. Right now interest rates are below inflation rates. No wonder the government has to provide the capital to the banks that they can use for lending. What fool would put his money into a bank only to see it's buying power decrease faster than the interest it accumulates?

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