Common-Sense Fix for Economic Issue....

[jimmiej]

I would be curious to learn more about how this worked. Can you point me to somewhere I could read more?

Thanks!

A while back, I found a good unbiased site that detailed the Reagan tax cuts. I'll look when I get home. I'm at work now & don't have it. However, it says virtually the same as this:

http://www.heritage.org/Research/taxes/BG1414.cfm

 

[mskani]

When I read Dave Ramsey's plan, that exact same thing crossed my mind as well. My mortgage rate is above 6% due to the mortgage product we chose, but we make our payments on time and in full. It seems like an unfair idea to me to set up a system where those who are behind in their payments get a better rate than those who are on time. It seems risky to me to essentially set up an incentive for people to be late in order to get a more attractive mortage rate.

I agree

I have a question for all of you financial gurus: What would be the impact or result of lengthening the amortization period along with a more reasonable fixed rate of say 8.5 to 10%? That should lower the payments, and maybe just maybe more of the delinquent borrowers would be able to keep their homes.

I just don't believe that delinquent borrowers or those who overbought should end up with a rate that is lower (and in effect) better than one that borrowers who met their responsibilities and/or bought within their means.