Too bad I'm not in that business, what an ad campaign one could have with this. What am I saying? Every taxpayer is a mortgage lender now. More at link above.
Mortgages for single-family properties that are worth more than $729,750 are excluded.
Interest rates can be lowered to as low as 2 percent and then if necessary, the term of the loan can be extended to a maximum of 40 years.
The home must be a primary residence (verified with tax return, credit report, and other documentation such as a utility bill). The home may not be investor-owned.
The home may not be vacant or condemned.
Borrowers must provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify.
Borrowers in bankruptcy are not automatically eliminated from consideration for a modification.
great...
the US govt will borrow monet at 3.5%, so they can turn around and give 2% loans.
what's a 2% loan worth?
if you are paying mortgage on 250k house at 4%, in thirty years your total bill comes to 830k, paying 2305 dollars a month.
the same 250k house at 2%, in forty years your total bill comes to 556k, paying 1160 dollars a month.
Giving a 2% loan is like giving 275k coupons, or a check for 1145 dollars a month, to the individuals who made the worst decisions, and bear some responsiblity for the mess we are in. (a lib could argue that they bear no responsiblity and that they were victims, but then how do you give a house to someone who holds 'no responsiblity'?)
Posted by: mark l. | Wednesday, March 04, 2009 at 03:04 PM