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08-05-2009, 09:49 AM #1
Renter
- Join Date
- Aug 2009
- Posts
- 2
real rate mortgages
During the last decades, every time inflation and interest rates have jumped, we have suffered a real estate crisis.
My point of view is: FRM and ARM mortgage loans generate them.
In order to avoid new crisis I propose new financial products, like real rate mortgages, loan softeners and stabilizing options. Although the suggested financial products apparently increase some risks for banks (due to slower or even negative loan returns), profits for banks and the economic system are significant. Similar financial effort for borrowers during loan’s life, steadier real estate market prices, real estate market immunity against inflation, lower probability of defaults, steadier loan to value (LTV) ratios, lower quotes for present borrowers, higher loan amounts for new buyers and higher real estate prices in the short term. The introduction of these financial products in the market may have no cost for taxpayers and help all economic agents.
You can find them in
wordpress.realratemortgages.com
(there is a full text proposal in the first post)
Thank you for your commentsLast edited by realratemortgages; 08-05-2009 at 10:08 AM.
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