|
Edited on Sun Dec-09-07 04:45 AM by SoCalDem
why?
because paul would have told them their idea was full of shit..
All that needs to happen is for the government to RE-regulate lending institutions and go back to making loans the way they did back when things were "normal"..
There's no reason on earth why a home loan should be more than say 7% for the RESIDENCE ...and there should NEVER be interest-only , variable rate home loans ..EVER..
2nd homes & income residential housing could have higher rates as a ceiling, but NO "housing loan" should ever exceed 10%, but people should never have an open credit line that exceeds their income..
Credit cards should never be allowed to charge more than 10% interest
Real credit checks need to be happening again, too.. Paycheck stubs, tax returns & bank statements.. and the PITI should NEVER exceed 25% of one's take-home income.
Any more than that, and you are ASKING for trouble..
No less than 20% down should be the norm, and re-financing & equity loans should never remove more than 50% of the equity in a home.
|