Govt proposing Freeze on Subprime Interest rates is it Fair or not to all Mortgage holders and who should pay?
Keep in mind while we blame the Banks who gave the loans to bad credit holders, our Govt told them to “Get low income and all first time home owners in their FIRST HOMES”. Also, keep in mind, that the people applying for these loans KNEW their loans “may” go up and YES the mortgage lenders do explain this to you, as the home owners try to play “dumb” now.
Keep in mind, many people combined high credit card balances, car loans and got every extra on the new homes they could knowing it was low interest loans on their new home and now that the rates are up “Ut oh” and now expect the govt to bail them out.
In New home developments, the real estate personnel who do pre-approvals know who can’t afford all the “extras” on the new homes, yet went ahead on their “low interest” loans, knowing they would reap the benefit of their commission, of course the end result is the home owner knows they eventually have to pay for these extras.