do u think interest rates should be cut to help out millions of families loosing their homes?

Question

DO you think Millions of people (including their kids) loosing homes should march infront of the White House and Federal Reserve Bank to plea for lower interest rates to help alleviate their mortgage payment woes?

Answer 1

I don't agree with some of the other answers. I think people did take ARMS at rediculous low rates, but if the interest rates had gone up slowly, the way rates normally do, they mostly would have been fine. No one could have forseen the constant and rapid increase by the Feds- I think we need to quit bashing people and realize that it's an unusual situation . Yes, I think Feds need to cut the rates- not only for the people facing foreclosure but because we are going to be in big trouble in all segments of the economy if they don't. Manufacturing for home products is down, building supplies are down, etc. How long before people are laid off? It's not only about the ones that are loosing their homes- it's the WHOLE picture- we are all in it! (by the way I locked at 5% long ago!)

Answer 2

No, not at all. Interest rates will not change based on being going into foreclosure. Remember this, people regardless of the rates are in foreclosure. Now, with people taking out loans that they should not have, and an industry that was trying to do too much mortgage business, this will not make the rates go down. Rates follow economic cycles.

If anything, more families need to start freshing up on what a real mortgage looks like, and stay away from "funny money."

Answer 3

No. I think they should have read the fine print and not taken out mortgages for more than they can afford. Any idiot knows that a variable rate is most likely going to increase. If they weren't able to afford the payment at the highest possibly interest rate, they should have locked in at a reasonable fixed rate.

I'm sorry, people with this opinion want their cake and want to eat it too. All was fine and dandy when they were getting a lower than average interest rate. Now that it's gone up, they want to whine about it. They took the gamble and it was all spelled out to them before they did it.

Greed for a lower interest rate is what got them into this situation.

Answer 4

Raising interest rates is the right thing for the Feds to do. People who save their money will credit from this. What does not make sense to me, is all the people who cannot make their house payment just because of a small increase in the variable loan interest rate that they agreed to. It might be costing them a little more, but shouldn't their income be more now. The minimum wage is climbing, and most people have been getting raises. I think it's time for some people to start watching their budget. Only spend what you can afford.

Answer 5

While I agree that this mess is of the buyer's own making, I can't understand why the banks and mortgage companies won't allow the people to refi into a loan that they can afford to pay. We all know that banks don't want houses (non-performing assets) especially in MASSIVE quantities. So why in the world would they refuse to refinace a customer into a new loan that they could afford? Instead of a happy loyal customer paying them in full for the next 30yrs, they end up with a house they didn't want in a market that's tough to sell anything in.

Banker's care to help me out on this one?

Answer 6

its a shame that people get thrown out of their homes but they got themselves there. homeowners get different interest rates depending on their credit score and if they have a terrible score (from not paying bills or too many credit cards) they're gonna have a high rate and its usually their own fault by making poor money decision like buying that new car that wasn't necessary or dropping thousands of dollars on a new plasma. the way the housing market is they can always just sell and move to a more economically friendly neighborhood. also if they got a fixed rate morgage they have no excuse since its the same payment every month for 30 yrs or so but no they shouldn't hang out in front of the white house b/c 1. the executive branch of the gov't doens't control interest rates alan greenspan and the fed do and 2. people who get themselves in a financial mess shouldn't make make excuses and put the blame on others.

Answer 7

Hey, they picked their loans. No one is loosing their homes against their will. They knew that their interest rate would increase when they signed it.

You apparently do not understand how our economy works. Artificially lowing the interest rate will serous effect our entire economy, including those of us you work and pull our fair share.

You would just trade one set of problems for another, only you would be dragging the middle class down with the lazy ones.

I think the government should STAY OUT of the present situation and let it correct itself. It will do that naturally, no need for Big Brother to baby sit us.

Answer 8

Interest rates are still at near-historic lows already. They haven't been at this level since the mid 1960s.

It's not the responsibility of the White House or the Fed for the actions of ill-advised individuals who entered into loan contracts that they could not afford.

Answer 9

would you let the foolish bankers and their ilk off the hook for making dumb loans?

there are maybe 100 billion plus of losses yet to be booked on this -- suppose you really wanted to do this -- how can you accomplish the result without, in essence, giving those fools 100 billion dollars?

and where would the 100 billion come from? taxpayers? inflation?

It has to come from somewhere if the bankers get it.

so please tell me why us retired folk should pay for this when we weren't part of the whole mess?


thanks,

Answer 10

No, that's life. But the people who are responsible for approving millions of bad loans should be publicly flogged and thrown in jail for the next 10 years. *Sigh*...I know that's not going to happen though, but they at least should be denied their golden parachute somehow.