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so how did they "pay for" the entitlement fee cut ?

Discussion in 'U.S. Politics' started by dogtowner, Feb 7, 2012.

  1. dogtowner

    dogtowner Moderator Staff Member

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    good reason to vote out anyone who voted for this

    why settle for a few bucks from rich people (that will never materialize) when you can screw the middle class for ten years ? bets that it gets extended to forever ?


     
  2. Openmind

    Openmind Well-Known Member

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    She must have a really high mortgage then. . .
    Because if she had a $100,000 mortgage, the "fee" would cost her $100.00 a year (or lest than $10.00 a month) for 10 years, which comes to $900.00 over ten years. . .

    Now. . if she decides to get a mortgage for $1 million dollars, it's her choice. . .and then it would cost her $9,000 over the ten years!

    But since the interest rates is about 1/2 of what they were under Bush. . .she is still FAR ahead of where she was 4 years ago!
     
  3. dogtowner

    dogtowner Moderator Staff Member

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    price houses in Northern Va. my step brother paid 500k for a fixer upper. a REAL fixer upper. and that was 15 years ago.
     
  4. Openmind

    Openmind Well-Known Member

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    He might want to consider moving to a new house for the same price today. . . at a 3% mortgage!

    [​IMG]
    226 BANFF SPRINGS PL

    CHANTILLY, VA 20152​
    $499,999​


    • 4 bds​
    • 4 ba​
    • Status: Active
    • Listing #: LO7766221
    LITTLE RIVER PRESERVE IN CHANTILLY - YARDLEY WITH 2 CAR GARAGE, FEATURES 4 BEDROOMS, 3.5 BATHS, GRANITE COUNTERS AND HARDWOOD FLOORS, FAMILY ROOM FIRE...
    Listing courtesy of Brookfield Management Washington LLC
     
  5. dogtowner

    dogtowner Moderator Staff Member

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    don't think he wants a 3-4 hr commute. thats what you pay for up there.
     
  6. Openmind

    Openmind Well-Known Member

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    Don't think you mentionned where he worked. However ther are some very nice houses in the same webside that are located in Arlington or Alexandria!

    I guess we all make choices. . . And if we can afford a million dollars mortgage, I'm sure we can, IF WE decide to rfinance to obtain a loser mortgage rate, the 1/10 of a percent extra cost to our mortgage. . .or we are probably buying over our head!
     
  7. dogtowner

    dogtowner Moderator Staff Member

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    be that as it may, this looks to be doing a great deal more than "paying for" this two month deal. Not to mention adding obstacles to a housing market already on life support.
     
  8. Openmind

    Openmind Well-Known Member

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    Sure. . .being able to get a 3% mortgage, and the new effort President Obama is making to help people refinance is being negated by that 1/10th of 1% "tax"!

    And this "tax" at least makes sense: people with little means pay little, people with big means pay more!

    I hope there will be more changes in the tax code regarding mortgages. I believe that interest on mortgages up to $400.000 (or the level of "jumbo loan," which varies around the US to account for cost of properties in different areas) should continue to be tax deductible, but that the amount over that "base mortgage" (or the part of the mortgage that is "jumbo") should lose the tax deduction.

    It would not only make people think twice about building and occupying those huge, good for nothing except using more energy and making a much bigger foot print on our environment. And still. . .it wouldn't keep people who want those mega mansion from exercising that right. . . . but at their own expenses!
     
  9. dogtowner

    dogtowner Moderator Staff Member

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    the interest rate is beyond BOs ability to control and whatever programs he might be doing for borrowers are not "paid for" by this. remember that people of more humble means also buy homes and as you like to point out, that extra hurts them more. people of means can already buy homes, its those that are closer to the limits of borrowing that the market is missing. and there are more of them.
     
  10. BigRob

    BigRob Well-Known Member

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    The story says the fee lasts the life of the loan -- which is probably 30 years -- and on $100,000 (which is extremely low) -- would be $2,700.00.

    Apparently the average mortgage debt in the US is right around $200,000 -- which would mean an additional $5,200 added to the bill.

    Assuming she can get a job -- and interest rates would not be so low if the economy was really about to expand.
     
  11. BigRob

    BigRob Well-Known Member

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    In my opinion -- if you can't put 20% down you have no business buying a house. If we have saturated the market with houses no one can afford -- then bulldoze them.
     
  12. dogtowner

    dogtowner Moderator Staff Member

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    sure enough I misread, the program itself extends 10 years.



    and the rates are artificially low due to fed action.
     
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