5 year-arm interest only and 10 year-arm interest only.
or as pimps would call it how to con a john.
in the 90's banks were offering mortgages
using the banker's choice of words.
banks could qualify almost anyone for any loan
because the payments of interest only, was the
consideration necessary to qualify a buyer
who wouldn't didn;t make enough money to qualify for
a standard principle and interest 30 year mortgage.
most borrowers , having found their house of choice,
wanted a mortgage, and the banks came up with a new
type of loan called the five or ten year fixed followed by
a 1arm, a variable rate changed anually for the balance
of the loan. then the banks bundled these into
packages, called them derivatives and sold them to
other lenders and everyone was happy in the banking
business, until the variable interest kicked in and
borrowers saw a monthly payment more then double.
sometimes almost triple and then the house of cards
fell down, and the country moved as close to a
depression as it could. by law, penetration, however
slight, is deemed to be considered rape.
somehow bush's advisors saw the problem starting
"The Troubled Asset Relief Program, commonly referred
to as TARP, ia program of the United States government
to purchase assets and equity from financial institutions
to strengthen its financial sector which was signed into
law by U.S. President George W. Bush on October 3,
2008. It is the largest component of the government's
measures in 2008 to address the subprime mortgage
crisis."
tarp "was started to keep us out of a depression, but
barely (penetration however slight) and the baby arrived,
a major recession. President Obama continued the tarp
and because of the tarp, a depression was prevented for
many people, but did nothing for most middle class
families. a recession is what affects you, a depression
is what affects me.
at the insistence of President Obama, the government
went into the car business, buying in part, general
motors. republicans and like minded short sided dumb
a s s e s screamed bloody murder. today the stock of
general motors, brought the common stock up to $34.+
ands shortly the government can sell it's shares and
will make a profit on it's loan to gm,
unfortuantely, republicans being ther stumbling block to
everything the administration did not get the public
option in the new medical bill, not did the administration
get all the regulations for the financial markets it wanted.
four years ago i got an interesting set of mortgages.
the bubble had not burst and my house, 1800 sq ft three
and a den, 57 X 180 feet property, tract home, built in the
early 50's, in need of paint as we all know, was valued at
$625,000. i bought it in 1969 for $32,500.
my first is a 30 year fixed rate of 6.625 with interest only
for ten years; my second is at prime, with interest only
for the same 10 years. at the end of ten year, the3 rates
will stay the same and my heirs can sell it, abandon it, or
move into it. if they handle the transfer correctly the
yearly tax will remain under $1,100. a year.
over the last few days i have been looking as i always
have for any improvement for my most valuable asset.
the best offer i had was from my current lender. they
could reify my first and reduce the monthly payment by
$300,00 for 5 years and then i would be in the arm ,
adhjustable rate mortgage. that rate today would be 4,1
+ 2.25, 6.35. and the libor index is in the low 4's. in the
mid 90's it was in the 8.4's
so what is available to the public now is once again how
to con a john, nice kisses now and in 5 years i will be
required to bend over so the bank can rape me without
having to look me in the eye.
and the republicans don't want too much regulation over
the financial pimps
