Is The 30-Year Fixed Mortgage In Jeopardy?Posted by Stougaard McIntosh on February 17th, 2021 If Congress have their way, the 30-year fixed mortgage might just go the way in the dinosaur. The government wants to dissolve both Fannie Mae and Freddie Mac, the origin of funds for upwards of 90% of mortgages in the nation. This could spell disaster to the already devastated housing market. What could this suggest to consumers? Minimum first payment could rise to 10% to 20% which will all but get rid of the first-time buyer market - market this is the motivator inside entire housing marketplace. Without read more -time buyers, there isn't any housing market. Interest rates can be set by private and institutional investors, and in a capitalistic society such as ours, greed will most likely replace reason and therefore rates of interest on home mortgages could skyrocket, specifically a person with lower than stellar credit. home loans melbourne may possibly also put an end to the 30-year fixed mortgage in favor of 10-, 15- or 20-year amortization schedules making owning a home a lot more unaffordable -- another nail within the coffin with the housing marketplace. take a look at the site here can be a prime example in the pendulum swinging 180 degrees within the other direction. Fannie Mae and Freddie Mac didn't result in the mortgage crisis. Were they greedy? Of course these were, along with a lots of other folks that need to share with you the culprit including home buyers themselves. Their lax underwriting standards allowed lots of people that could do not have got a new home otherwise for this. But this is pointless to dismantle them. Regulate the heck out with the, yes, but dismantle them, no way. Without them, we might donrrrt you have a housing sector aside from just the upper middle class and above. Certainly Joe Blow making /hour will never be in a position to afford a property again. Since the Great Depression, Fannie Mae and Freddie Mac along with the 30-year fixed mortgage have made it possible for that average American worker to possess your house of their own. The so-called American dream is likely to be in danger when the dissolution of such two mortgage giants is allowed to happen.Like it? Share it! More by this author |