Posted:
#1
Does anyone else but me realize that when you have a 2250 mortgage payment and it is broken down as follows:
Interest - $1338
Principle - $308
Taxes - $433
Insurance - $171
LOL at these idiots in congress and their plans to fix the economy
Posted:
#5
Quote Originally Posted by KOAJ:
you cant have max interest rates because banks wont lend if profit margins are capped
first 10 years of a mortgage are mostly interest anyway...better to overpay and make your 30 year into a 20 year by sending an extra $1-200 a month
you cant have max interest rates because banks wont lend if profit margins are capped
first 10 years of a mortgage are mostly interest anyway...better to overpay and make your 30 year into a 20 year by sending an extra $1-200 a month
LOL! Pay an extra 100 or two a month. That's like throwing a deck chair of the titanic.
Banks are making money hand over fist and our great government thinks they need more. Nobody should be paying 60% of their mortgage payment as interest. That is flat out theft.
They are not interested in fixing this thing the only thing they care about is making sure their greedy buddies can still make money. SAD
Posted:
#7
helmut - extra cash you pay every month drives down the principal of the loan so interest doesnt accrue on it...at 6% over 30 years the difference made by sending an extra 100 a month is a lot more than you think
the structure of all mortgages is very interest heavy upfront (first 5-10 years)...no idea why its like that but it is. if you pay down extra principal on top of that you will be better off
you can get 3% in an online bank, risk your cash in the market, get 4% on a 30 yr t-bill or you can knock down compounding interest on a 30 year loan...best to pay off the debts now
the structure of all mortgages is very interest heavy upfront (first 5-10 years)...no idea why its like that but it is. if you pay down extra principal on top of that you will be better off
you can get 3% in an online bank, risk your cash in the market, get 4% on a 30 yr t-bill or you can knock down compounding interest on a 30 year loan...best to pay off the debts now
Posted:
#8
Quote Originally Posted by KOAJ:
you cant have max interest rates because banks wont lend if profit margins are capped
first 10 years of a mortgage are mostly interest anyway...better to overpay and make your 30 year into a 20 year by sending an extra $1-200 a month
you cant have max interest rates because banks wont lend if profit margins are capped
first 10 years of a mortgage are mostly interest anyway...better to overpay and make your 30 year into a 20 year by sending an extra $1-200 a month
KOAG, i rarely disagree with you when it comes to things involving money, but you can't be serious? You do this and then your piss gov't is out there forcing contracts to be renegotiated for lower principle and new interest rates. Imagine if you had bought a house in 2000, and spent the last 8 years 'throwing' some extra money towards your principle. Your neighbor bought at the same time, and put that same extra money into savings instread of against their principle. Your neighbor on the other side, just paid what was owed, and spent that extra money every month.
Now, when wwe have a 90 day moratorium on foreclosures, and those in distress are able to have the principle balance wrote down, who makes out in this situation, and who is using their extra money to buy ammo hoping for a revolution 
THe thing that i still don't get about all this mess is, for those who bought housews with no equity, those loans required that they pay PMI private mortgage insurance, in the case that they default, someone is collecting this insurance money on the risky loans, shouldn't that someone have to use some of that PMI money they've been hoarding to chip in on the foreclosures? IF PMI doesn't insure against anything, why are people requird to pay it?
LOL! Pay an extra 100 or two a month. That's like throwing a deck chair of the titanic.
Posted:
#11
Quote Originally Posted by JG33:
I also pay taxes and insurance separately. Why pay interest and handling fees on these charges also.
I also pay taxes and insurance separately. Why pay interest and handling fees on these charges also.
well taxes go to the gov't, and it's now obvious how the gov't feels about making sure the insurance companys get theirs. SO, by having these forced-escrow into a mortgage loan, the gov't can make sure that it's going to get their money right away, rather than get stiffed at tax time . For those at issue right now, it's normally not an option. If you don't have 20R% equity in your home, you arre forced at gunpoint to pay PMI, Taxes, and insurance with your monthly loan payment, it's not a choice. so to answer your quesiton why?, it's because the gov't makes them
Posted:
#13
be easy,
Like I said, I'm not that knowledgeable on US mortgages (although I should learn as I plan on buying property in the US shortly). It sucks that you have to add the taxes into the mortgage. I really believe the US banking industry needs complete overhauling. And while I think our healthcare system sucks, we (in Canada) have a great banking system. Perhaps the US should copy our banking system.
Like I said, I'm not that knowledgeable on US mortgages (although I should learn as I plan on buying property in the US shortly). It sucks that you have to add the taxes into the mortgage. I really believe the US banking industry needs complete overhauling. And while I think our healthcare system sucks, we (in Canada) have a great banking system. Perhaps the US should copy our banking system.
Posted:
#14
KOAG, i rarely disagree with you when it comes to things involving
money, but you can't be serious? You do this and then your piss gov't
is out there forcing contracts to be renegotiated for lower principle
and new interest rates. Imagine if you had bought a house in 2000, and
spent the last 8 years 'throwing' some extra money towards your
principle. Your neighbor bought at the same time, and put that same
extra money into savings instread of against their principle. Your
neighbor on the other side, just paid what was owed, and spent that
extra money every month.
----------
in theory you're correct but you need to assume a "normal" rate of return in the mkts.
paying 1-200 extra a month doesnt preclude me from making any ira/401k/savings contributions. making one extra mortgage payment a year turns a 30 into a 22 year mortgage...roughly
what are your cash payments over 8 years of mortgage? what rate of return do you get for making that one extra payment over 22 years?
you make 22 payments of (ex) 2000 a month to save 96 payments (8 years)
you pay 44000 over 22 years to not pay 192000 over the last 8. thats a good enough rate of return isnt it?
----------
in theory you're correct but you need to assume a "normal" rate of return in the mkts.
paying 1-200 extra a month doesnt preclude me from making any ira/401k/savings contributions. making one extra mortgage payment a year turns a 30 into a 22 year mortgage...roughly
what are your cash payments over 8 years of mortgage? what rate of return do you get for making that one extra payment over 22 years?
you make 22 payments of (ex) 2000 a month to save 96 payments (8 years)
you pay 44000 over 22 years to not pay 192000 over the last 8. thats a good enough rate of return isnt it?
Posted:
#15
Quote Originally Posted by JG33:
be easy,
Like I said, I'm not that knowledgeable on US mortgages (although I should learn as I plan on buying property in the US shortly). It sucks that you have to add the taxes into the mortgage. I really believe the US banking industry needs complete overhauling. And while I think our healthcare system sucks, we (in Canada) have a great banking system. Perhaps the US should copy our banking system.
be easy,
Like I said, I'm not that knowledgeable on US mortgages (although I should learn as I plan on buying property in the US shortly). It sucks that you have to add the taxes into the mortgage. I really believe the US banking industry needs complete overhauling. And while I think our healthcare system sucks, we (in Canada) have a great banking system. Perhaps the US should copy our banking system.
i'm sorry if i misinformed you, you don't HAVE to ,but they force those with little to no equity in their houses to have taxes/insurances escrowed, and they include it in your monthly payment. The PMI, well i'm not sure what that's for anymore, but it's called Private Mortgage Insurance, i think it's supposed to be insurance for a lender that the borrowerr pays for being 'risky', but i guess that was recently prroven to be not so true .
IF you're looking at buying property in US, sit back save, and wait a while for the shit to blow over. Home prices won't be moving back up for yearrs, if ever 
Posted:
#21
The ignorance of the American voting public always amazes me. The reason for the meltdown in the housing market is because Clinton in the last three months in office signed legislation that deregulation Fanny Mae and Freddie Mac. (the two biggest mortgage holders) The reason for this is that he believed that everyone should have the right to own a home regardless of down payment, ability to pay, or credit. So for the last eight years you had a influx of buyers and not enough homes to buy. Simple supply and demand. Because of this home prices skyrocketed until the supply caught up with the demand. The so called Bailout Program is not a bail out program at all and will make the government money. Banks are all on margins and that margin for a mortgage is 10% which means they have to carry that as cash in the bank for the life of the loan. When a mortgage goes into default that margin goes up to 80% because only the top 20% covered by mortgage insurance. So If I am a bank and loan 100K out and that loan is in default I cannot lend out 800K over the next year because I have to have 80K on my margin on the 100K original loan. So I am asset rich but cash poor until I foreclose on the properties and get my cash flow back. It has nothing to do with the president and everything to do with the congress. When Clinton was in office you had a Republican controlled congress and economy was good. Now we have the opposite and the economy sucks. I will ask you this as a test to confirm my thought. Name me three Democratic policies that Clinton put through in (8) years in office. (8) years!! Now you are more informed that 99% of the dumbasses out there.
Posted:
#22
Quote Originally Posted by TheBookBeater:
The ignorance of the American voting public always amazes me. The reason for the meltdown in the housing market is because Clinton in the last three months in office signed legislation that deregulation Fanny Mae and Freddie Mac. (the two biggest mortgage holders) The reason for this is that he believed that everyone should have the right to own a home regardless of down payment, ability to pay, or credit. So for the last eight years you had a influx of buyers and not enough homes to buy. Simple supply and demand. Because of this home prices skyrocketed until the supply caught up with the demand. The so called Bailout Program is not a bail out program at all and will make the government money. Banks are all on margins and that margin for a mortgage is 10% which means they have to carry that as cash in the bank for the life of the loan. When a mortgage goes into default that margin goes up to 80% because only the top 20% covered by mortgage insurance. So If I am a bank and loan 100K out and that loan is in default I cannot lend out 800K over the next year because I have to have 80K on my margin on the 100K original loan. So I am asset rich but cash poor until I foreclose on the properties and get my cash flow back. It has nothing to do with the president and everything to do with the congress. When Clinton was in office you had a Republican controlled congress and economy was good. Now we have the opposite and the economy sucks. I will ask you this as a test to confirm my thought. Name me three Democratic policies that Clinton put through in (8) years in office. (8) years!! Now you are more informed that 99% of the dumbasses out there.
You on your 2nd case of Milwaukee's best yet?
That's the biggest load of shit I have ever read.
I want my 35 seconds back.
Posted:
#23
Quote Originally Posted by TheBookBeater:
The ignorance of the American voting public always amazes me. The reason for the meltdown in the housing market is because Clinton in the last three months in office signed legislation that deregulation Fanny Mae and Freddie Mac. (the two biggest mortgage holders) The reason for this is that he believed that everyone should have the right to own a home regardless of down payment, ability to pay, or credit. So for the last eight years you had a influx of buyers and not enough homes to buy. Simple supply and demand. Because of this home prices skyrocketed until the supply caught up with the demand. The so called Bailout Program is not a bail out program at all and will make the government money. Banks are all on margins and that margin for a mortgage is 10% which means they have to carry that as cash in the bank for the life of the loan. When a mortgage goes into default that margin goes up to 80% because only the top 20% covered by mortgage insurance. So If I am a bank and loan 100K out and that loan is in default I cannot lend out 800K over the next year because I have to have 80K on my margin on the 100K original loan. So I am asset rich but cash poor until I foreclose on the properties and get my cash flow back. It has nothing to do with the president and everything to do with the congress. When Clinton was in office you had a Republican controlled congress and economy was good. Now we have the opposite and the economy sucks. I will ask you this as a test to confirm my thought. Name me three Democratic policies that Clinton put through in (8) years in office. (8) years!! Now you are more informed that 99% of the dumbasses out there.
You read that online or in some uneducated news article.
Lending to the people you reference is not why we are in this situation.
I suggest you dig a little deeper or read the plethora of threads on this site and find the real reasons.
Posted:
#24
Quote Originally Posted by KOAJ:
helmut - extra cash you pay every month drives down the principal of the loan so interest doesnt accrue on it...at 6% over 30 years the difference made by sending an extra 100 a month is a lot more than you think
the structure of all mortgages is very interest heavy upfront (first 5-10 years)...no idea why its like that but it is. if you pay down extra principal on top of that you will be better off
you can get 3% in an online bank, risk your cash in the market, get 4% on a 30 yr t-bill or you can knock down compounding interest on a 30 year loan...best to pay off the debts now
helmut - extra cash you pay every month drives down the principal of the loan so interest doesnt accrue on it...at 6% over 30 years the difference made by sending an extra 100 a month is a lot more than you think
the structure of all mortgages is very interest heavy upfront (first 5-10 years)...no idea why its like that but it is. if you pay down extra principal on top of that you will be better off
you can get 3% in an online bank, risk your cash in the market, get 4% on a 30 yr t-bill or you can knock down compounding interest on a 30 year loan...best to pay off the debts now
I believe that it is partly influenced by the way our foreclosure system works. If the bank has to foreclose on a home in years 1-5 of the mortgage, it maximizes their profit because at the Sheriff's sale the bank still has the majority of the stake in the house. Assuming that the house sells for its proper value (I'm speaking hypothetically, and not in the current market) the bank fully recoups the money lent for the house plus gets to keep the earlier house payments as their interest.
Posted:
#25
Wallstreet you are a fool. i amm a independent andbelieve that everyne should be.Answer my question NAME ME THREE JUST THREE IN 8 YEARS. You cant because there is none, the point i am trying to make is that the county that i see now is not te one that my grandparent or my parents told me to be proud of. I think obama is a very intelligent leran on the fly kind of guy but waht concerns me is that for the first time sence befre thae great depresion there is a democratic congeress and president. i have traveled alot and i will tell you that we are blessed to have the privliges we have. What i don't get is they belief that these to candidates are so different. They have voted 80% agreeable on all the bills they have passsed. How can that happen? if a bill is puposesed it starts out at 100MIl by te time youu vote its 1 Billion with all the addendems for your specific areaa. So you loo at the entire BS earmarks and you agree with 51% to 49% you vote yes. If you on the other side you vote no. Now if there is 10 bills on the Senate floor does that mean that we disagree on every point no. that means that we diagree on 10% of the bills.
I have two little oes and i am horrified that i am leaving a earth that is not as good as i ave been able to enjoy. There are three ways we can reverse the damage we have done to this planet NUKE, SOLAR, WIND. i know we can't give nukes to rough nations butt big 3 USA, China, and INDIA all have nukes already so why are we not using them france is 85 % Nukes.Obama is into pushing ethanol and bio fuels, what appens if there is a drougt or a bad crop year.Eruope tried is it doen'e work. it raises the market price for corn and grain and it takes 7 barells of oil to produce 8 barrels of ethanol. so the grean house emisions are negative. add the fact that ethanol has a 30% lower octane level than gas whitch means if your MPG goes down by 30% do the math you are uside down in the green house emmisions.
To say that McCain is like bush is laughable. He hates him and he is so far to the left it makes me upchuck. 5 years ago he was so pissed at how the Republican party was going he was approched by Ted kennedy and thought about joining the Demoratic ticket.
My final thought is that how ever you vote be informed do not listen to me or anyone else but please do not base your vote on a 20 second infomercial.
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