how so or not so?
2007-02-19 06:34:17 · 5 answers · asked by ? 1 in Business & Finance ➔ Other - Business & Finance
FOR EXAMPLE ARM LOANS OR INTEREST ONLY LOANS?
DID THEY GET THE LOAN EASIER BY GOING THIS ROUTE?
2007-02-19 06:34:53 · update #1
The responsibility for someone taking a loan lies with the individual, especially when it comes to small print.
However, it is should be the loan company's responsibility to fully inform the customer of all terms and conditions. This is where mis-selling comes into it and why many providers have been fined.
It is always in the consumers best interest to shop around and take independent financial advice prior to signing any agreement.
Different types of loans suit different people. Interest only loans mean that monthly repayments will be less than capital and interest but that the original capital amount will still be outstanding at the end of the contract.
2007-02-19 07:45:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There has been too much easy money floating around the system for too long - interest rates (set by the Fed) were too low for a long time, and America already has a credit problem to begin with. The exotic lending devices were just ways to write loans... yes, they are made for all the wrong reasons (namely giving credit to people who shouldn't have it), but there is a reason the central bank should do exactly the opposite of for-profit lenders...
Are they innocent people? No. Financially stupid? Yes. Basically, the people were greedy and overextended themselves, and although the lenders are complicit as being enablers, the fault ultimately lies with the people who took loans they had shouldn't have.
2007-02-23 01:54:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most times people are snookered because they are trying to cheat. ARM- variable rate mortgage, permit a person to get a mortgage at a lower rate now, but they have to accept the fact that the rate may go up later. Interest Only mortgage, permit lower payments, but the principal is never paid. If you have a good job, and a lot of bills to clear up. This mortgage is good because you can buy the house now- pay down the other bills, then repay the principal. You don't have to refinance to accomplish this task.
ALL OF THESE PROGRAMS IS GOOD. Not all programs is good for everybody.
2007-02-19 14:44:08 · answer #3 · answered by whatevit 5 · 0⤊ 0⤋
Well if you had the balls to sign a morgage during a game of snooker , what can you expect.?
2007-02-19 14:40:16 · answer #4 · answered by katrinasfather 3 · 0⤊ 0⤋
Yes, but it was their responsibility to avoid getting into something they couldn't handle in the first place.
2007-02-19 14:37:43 · answer #5 · answered by Gen•X•er (I love zombies!) 6 · 0⤊ 0⤋