The fundamental problem with our economy is that we are a bunch of consumers.
We are rewarded to consume and penalized to produce.
All we have to do to fix the economy is tax gas and make it $5+/gallon, tax ciggys and charge $10/pack…and reward, reward, reward the producers. (That is the land of opportunity!)
Giving everyone $600 bucks so they can go spend it; is ABSOLUTELY ridiculous! You might as well give the top 150,000 Entrepreneurs $1MM each! That would create opportunity! Hopefully that would get the stack of unemployment claims off of everyones desk.
Well at least they did one thing right by raising the mortgage loan limits…
Tags: economy, fha, loan limits, Mortgage
The Lyons Den 
January 27, 2008 at 10:01 am |
The increase of the mortgage limit is to bail out the banks through a different route. 🙂
January 27, 2008 at 10:33 am |
More like a bailout for the homeowner…but not really. If they don’t have the equity they don’t have the equity. If they do not have the documentable income they cant go FHA. This will improve (not help or bailout) a lot of people with JUMBO rates by substantially lowering their payments and rates.
It could be argued that FHA will bailout some homeowners by putting them in a better loan (thus bailing out some banks with a lot of baggage in their portfolio) but remember they still have to have at least 5% equity if they pulled cashout on a 2nd in the last 12 months or 1.5% equity if they did not. They still have to document their income “FULL DOC.” These have to be solid loans for the GOVT to bank them and they are
May 5, 2008 at 8:19 am |
The banks even loan the money from the federal reserve
June 4, 2008 at 6:42 am |
I found this tool to calculate a mortgage.. looks quite good!