Kick-Start the Economy. Bring on the 3% Mortgage.

[Rockholm]

I would refinance my mortgage. The real estate industry would take off again. People could afford homes again. With the Fed Fund Rate at 1.25%, banks would make money.
Pro, Cons, Ideas? Am I totally wacked?

[DemzRock]

I'm not a financial wiz, but that would be great. People could refinance and help their credit...

card debt at the same time? Maybe?

[DemzRock]

1. I'm not a financial wiz, but that would be great. People could refinance and help their credit...

card debt at the same time? Maybe?

[Rockholm]

2. And...make credit card interest Tax-Deductible.

[JuniperLea]

4. That used to be the case...

That would help, but someone needs to get the credit card companies to lower their rates too. What they are doing just isn't right. These bottom feeders are on my last nerve.

[JuniperLea]

3. This has been my thought all along...

And I think those currently with principle mortgage amounts greater than the value of their homes should have the mortgage adjusted, as well as their property taxes.

I'll be shocked if this happens, because it's the right thing to do... and rarely do we see anyone with our money in their pockets do the right thing by us.

[NJCher]

5. Switzerland

My husband, who has a number of friends in Switzerland, told me mortgages there are a uniform rate and it's something like 4 per cent.

I think he said no HELOC (home equity line of credit).

I like your idea, Rockholm. How do we get somebody to pay attention?



Cher

[Rockholm]

8. Get some large local bank to be the first.

Banks are greedy bastards. If one bank were to do this. In Greater Boston, a mid-size bank like Eastern Bank could try to do something like this. I bet within days, thousands would be attempting to borrow.
Naturally, other banks would follow suit.
What really gets me is that the large banks are hoarding this $300B bailout money. I guess I should say WHORE-ding the money.

[Oregone]

6. Banks wouldn't loan at that rate. Greedy bastards want their margins.

You could lower the fed rate to 0%, and I dont think the average mortgage offering would be below 5%.

What I don't understand, why can't we have a nationalized direct to consumer bank? Why must we include a middle-man to drain everyone's wealth by lending money that isn't even their (and offsetting the immediate costs by selling off securities)?

[FloriTexan]

7. Let me know when that happens.

Hubby and I were wanting to refi to get cash out or get a 2nd lien to get some work done on the house for almost 2 years now. Even with our good credit we couldn't get them below 7% a year ago on a refi and we're at 5.65. Plus, Countrywide, wanted an absurd $6000 in closing costs for $60,000. So we waited, are still waiting. The lower the fed rate cuts went the less the mortgage company rates dropped. The home improvement loan was quoted at 12%. Soon as the banks decide to pass along their rates to the consumers we will try again but til then forget about it.