Reply to thread

Message

<blockquote data-quote="mrogowski" data-source="post: 3602095" data-attributes="member: 569061">You crazy Americans... //content.invisioncic.com/y282845/emoticons/tongue.gif.6130eb82179565f6db8d26d6001dcd24.gif5 years to lock in rates is not a very long time at all.&nbsp; In fact, I think Bush is just postponing the inevitable.&nbsp; He may think he is helping people, but the banks are far from dumb.&nbsp; If a freeze happens and lenders are short-changed as a result, they will simply increase rates elsewhere to take up the slack.So, in five years when the lock is over, and those homeowners need to refinance, rates will be through the roof compared to what they are today.This is exactly what happened in the area I live.&nbsp; In the 80&#039;s a five year break was given to potential homeowners because interest rates were very high.&nbsp; Folks bought the new homes, locked themselves into that &quot;deal&quot; and then ended up having to sell five years later because they could not afford the refinanced interest rates.Frankly, he should just stay out of it and let the market correct itself.&nbsp; But then, he won&#039;t be in power in 5 years anyway so I doubt he really cares what would happen...</blockquote>

[QUOTE="mrogowski, post: 3602095, member: 569061"] You crazy Americans... [IMG]//content.invisioncic.com/y282845/emoticons/tongue.gif.6130eb82179565f6db8d26d6001dcd24.gif[/IMG] 5 years to lock in rates is not a very long time at all. In fact, I think Bush is just postponing the inevitable. He may think he is helping people, but the banks are far from dumb. If a freeze happens and lenders are short-changed as a result, they will simply increase rates elsewhere to take up the slack. So, in five years when the lock is over, and those homeowners need to refinance, rates will be through the roof compared to what they are today. This is exactly what happened in the area I live. In the 80's a five year break was given to potential homeowners because interest rates were very high. Folks bought the new homes, locked themselves into that "deal" and then ended up having to sell five years later because they could not afford the refinanced interest rates. Frankly, he should just stay out of it and let the market correct itself. But then, he won't be in power in 5 years anyway so I doubt he really cares what would happen... [/QUOTE]

Verification