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1
Â¥
2011 Sep 26, 7:35am
Â¥
2011 Sep 26, 7:35am
Government should do all traditional mortgage financing, plus reverse mortgages on the back-end.
Banks don't want to carry 30-year interest risks anyway. Let them concentrate on consumer and corporate credit.
2
OurBroker
2011 Sep 26, 8:04am
OurBroker
2011 Sep 26, 8:04am
I don't think there's a lot of 30-year risk because most mortgages end far sooner as a result of refinancing or selling. That's why mortgage rates are generally compared with 10-year Treasuries.
3
Â¥
2011 Sep 26, 8:08am
Â¥
2011 Sep 26, 8:08am
^ Once interest rates start going up we're not going to see any refinancing, LOL.
4
OurBroker
2011 Sep 26, 8:12am
OurBroker
2011 Sep 26, 8:12am
Yes. Imagine if rates today were more in the normal range of the past 30 or 40 years, say 7 percent or 8 percent.
It used to be that the government set FHA rates. Shopping for all loans was simple because you knew what FHA financing would cost and therefore there was a basis of comparison for conventional and VA loans as well.
HUD stopped setting FHA rates in 1983 but the question is this: Should the government once again publish daily FHA rates? Imagine how much that would help borrowers if such rates were posted online. Imagine also that not knowing much about mortgages is a central cause of over-paying: The Wall Street Journal says that 61 percent of subprime borrowers in 2006 actually had the credit scores to qualify for FHA, VA and conventional loans -- loans with lower costs and better terms (and loans with far fewer foreclosures).
http://www.ourbroker.com/news/government-set-mortgage-rates-again-092611
#housing