Tuesday, December 18, 2007

More Nanny State Stuff Regarding Home Loans

Fed cracks down on lenders - Dec. 18, 2007 Well I guess it is expected. Since Americans have proved they have no concept of math - even the math involved with their mortgage, salary, taxes, whatever. (If money can't get their attention, I don't know what will.) So Big Brother government has to take care of them.

But I think the Fed is missing one important regulation. It should require all borrowers to read every contract and either state they understand it or have a lawyer working for them who does.

Grow up people. Advertisements, even for home loans, are usually sugar-coated lies. (Or if not lies, next door to...) There is no such thing as a 1% interest rate mortgage loan, when the real interest rates are 5 or 7 percent. Negative amortization is a term you should know - and stay away from. And salesmen will (almost) always try to sell you something more expensive - it's how they make money.

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