The GOP thinks if the govt offers a 4% mortgage we are all going to run out and buy a house?

[RB TexLa]

National Association of Realtors gives republicans a lot of money and they propose a way to make the realtors quick money.

The banks won't loan money to people who can't pay so the realtors buy some influence and get McConnell to propose the government loan money to people who can't pay it back for their commissions.

[nichomachus]

1. No -- but you'll see a shitload of refinancing

I know I'll be first in line.

It would drop my monthly payment from 687 to 477. I'll take it.

[county worker]

2. How long will it take you to absorb the closing costs?

[nichomachus]

5. At $210 a month, not long

[RB TexLa]

4. It's not going to be for that, the realtors didn't give Mitch money for that.

[Warpy]

7. Especially refinancing with a 15 year mortgage

It actually raises your payment a little, but it's a hell of a lot better than resetting the treadmill for 30 years.

Even so, I doubt there are many people who will bite since nobody is sure his job is going to be there this time next year.

[nichomachus]

10. Yeah

If I refinanced for 15 years at 4%, my monthly payment would go up by $50 or so -- not bad.

[rox63]

3. I can't refinance because my condo has dropped in value over the last 3 years

And it's now worth less than I owe on it. So I'm pretty much screwed, at least for a few years. :(

[Rockholm]

6. Your post is so off base.

First off, it is the National Association of Realtors. A 4% mortgage would stimulate the housing industry which is at the heart of the financial crisis. People could also refinance into lower rate mortgages.
Besides, the seller pays the commission. What do you have against realtors?

[Warpy]

8. People who aren't sure their jobs will be there

in 6 months, let alone 30 years, are simply not going to be lining up for cheap debt.

Nobody's out to get realtors. However, without a secure job market, those realtors aren't going to see a whole lot of action from this.

[RB TexLa]

9. I just made the name up.

Against them? They went to the republicans and said the banks won't give money to people to pay them commissions so you should have the government give money to people who can't afford it so we can have commissions. Right now they want to cap it at $300M. Squeeze a bit more donations out of the realtors and maybe it goes to $500M or even $600M.

In the end it won't be used for refinancing.

[Dr.Phool]

11. You can't refinance when your mortgage is higher than the appraised value.

Low interest rates are what fueled the bubble to start with.

And if you don't have a job anymore, or looking at not having a job anymore, or, if you're lucky, just looking at a fat pay cut, you ain't buying a house either.

Prices. Not rates are the problem right now.

The cure? More jobs with higher wages.

[SoCalDem]

12. No re-fi necessary.. Just send every mortgage holder a document

telling them that their NEW mortgage rate is 4%..and then have the mortgage holders send them another letter telling them that their new PRINCIPAL due is...(whatever the adjusted VALUE of their depreciated home)..

Talk about a stimulus..

and the banks/mortgage companies that were careless, will just have to EAT it.. The careful ones can then step in to take care of their former customers..

Take the medicine in ONE or TWO doses, instead of a droplet at a time..

[Rockholm]

13. I like that idea!