XPost: ca.general, ca.politics, alt.california   
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   From: a425couple@hotmail.com   
      
   On 12/7/2019 2:02 PM, Regulation Of Commerce wrote:   
   > 250 Year Fixed, 100% LTV, the taxpayers bail out the lender and the   
   > borrower on an instance by instance basis.  For conforming loans - up to   
   > nearly $500,000 most places, up to nearly $750,000 in places like Los   
   > Angeles, Orange County, and San Francisco, (nearly $700,000 San Diego).   
      
   Wow!!   
   You really are delusional aren't you?   
      
   >   
   > None of this adjustable rate mortgage, 5/1 10/1 ARM sh*t, which caused   
   > the previous mortgage crisis.  i.e. the loan adjusts from Interest Only   
   > (or fixed payment), to full payment (or adjustable rate payment) after   
   > 5-10 years, the borrower can't make the new higher payment, the house is   
   > under water, and the borrower thus can't refinance, and defaults on the   
   > mortgage.   
   >   
   > With a 250 Year Fixed, the payment is basically the same as Interest   
   > Only, the payment always stays the same, the house is paid off in 250   
   > years.  (70% of the house is paid off in the last 30 years.)  For this   
   > program to ever come into existence the taxpayers need to insure the loans.   
   >   
   > There will be no equity in the homes except for potential appreciation -   
   > for instance with a normal 30 year fixed, you pay double the price of   
   > the home over 30 years to interest, but the house doubles in value, and   
   > you get your interest back.   
   >   
   > Here, after 30 years, half the home would be paid off.  For instance,   
   > what started as a $500,000 loan on a $500,000 house, is now a $500,000   
   > loan (technically $499,946.60)  on a $1,000,000 house.  In another 30   
   > years, or 60 years total, another half the home would be paid off again,   
   > so 75% total, now a $500,000 loan (technically $499,769.65) on a   
   > $2,000,000 house.  Just saying.   
   >   
   > Everyone will be able to afford a mortgage, and we can get rid of rent,   
   > which is just screwing people as they never get it back.  With a home   
   > loan, you get all the interest you pay back, through appreciation, over   
   > the long run.   
   >   
   >   
   > Loan limits have already gone to 97% LTV on conforming loans, so they'll   
   > have to bail out the banks in the future again probably, so might as   
   > well make it 100% LTV, and bail out both the lender and the borrower, on   
   > an instance by instance basis, so the borrower can turn right around and   
   > buy another house.   
   >   
   > If the house is underwater and the borrower defaults, as is easily   
   > possible, there could be no equity in the home.  So the banks need to be   
   > insured by the taxpayers for this to ever be.  Everyone gets a home.   
   >   
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