 | Why dont the Feds reduce the interest rates. And Cap the interest rates of people with bad credit?? |
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Question: Why dont the Feds reduce the interest rates. And Cap the interest rates of people with bad credit.?The higher the rate the more likely people will lose there home, the more likely banks will close their doors and it is a domino reaction. If the Fed's would come in and regulate the Mortgage Broker Industry completely STOP PRE-PAY PENALTIES and cap the Interest rates of people who have had some bad luck at 2 points above A paper loans there would be a tremendous decrease in forclosures in the Mortgage Industry today. Less Realtors, Bankers, Builders and General Contractors would lose everything because the market went from so GREAT to Major Banks closing there doors overnight. I am a Mortgage Broker in NW Florida and I along with most everyone in this area is about to lose everything I have I can hardly buy groceries and pay bills and keep a roof over me and my kids head it is almost as bad as another Hurricane atleast then there would be some help. Come on someone step up lowere rates and ELIMINATE OPTION ARMS ot does not take a rocket scientist to figure out this would solve the pro
Answer: -I feel sorry for you, and you already know the bad news.. it will only get worse. As of Sept 1st FICO is fading authorized user's out of their calculations. Millions are going to be affected by this, credit scores will drop, even more people will be opting out of buying homes, the banks are going to raise their mortgage costs.. it just keeps going. -Because the current administration is against anything but the biggest of business and hates when any profit that could be made is lost. They will never get rid of prepayment penalties because the interest is how the business stays profitable. And any lowering of thew rates is a double-edged sword. It can be extremely beneficial to the banks or the consumers by doing exactly as you propose. But it could also turn and make it where everybody tries to refinance and then the long term money is so little that the lenders go under anyway. -I think these s ruining these financial institutions were making these outrageous interest rates on people with bad credit banking on the notion of hey if they default and foreclose we have a appreciate assest. NOW these dummies at the banks are now in trouble as now they are deprecating items. Now they are up Sh't creek. Yes i think for home loans only if you have excellent credit you get prime, good 1 over prime and other 2 over prime none of this 10-12 percent crap. I know some one who's mortgage jumped to 11 percent and cannot refinance now due to his owes more than the home is worth. He got that lousy ARM when he bought his home 3 years ago, it was all because he had a few lates on cc debt and 1 thing in collections for 144. SHAME on the credit system for punishing him for that, he paid all of his things. You see deadbeats all the time that never pay there debts off and let is get tossed around to collectors. In his case he just came across some bad luck, but paid it and owed up to his responsibility. Now he is being over punished with high interest mortgage. That is very extreme and the government should step in and help people in situations like his and yours.
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