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My boss is claiming Racism on big lenders holding back on Obama

Old 12-27-10, 04:05 PM
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My boss is claiming Racism on big lenders holding back on Obama

My boss is pissed off about something he saw on TV over the weekend about how some bankers (Fannie May? Freddie? I didn't want to ask questions while he was ranting) were claiming to have some plan to allow 50 year mortgages but they are holding back on introducing them during Obamas presidency for fear of making him look good. Supposedly these are white/republican lenders who hate Obama and don't want him to take credit so the rest of us will suffer.

Anyone hear about this? Any truth to this??
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Old 12-27-10, 04:18 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Your boss sounds like an asshole.
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Old 12-27-10, 04:20 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

He can be difficult lol
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Old 12-27-10, 04:26 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

50 year mortgage? Didn't they do those a couple of years ago already?
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Old 12-27-10, 04:28 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

yup: http://moneycentral.msn.com/content/...ng/p150992.asp

btw, a 50 year mortgage sounds like a terrible idea
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Old 12-27-10, 04:38 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Venusian View Post
yup: http://moneycentral.msn.com/content/...ng/p150992.asp

btw, a 50 year mortgage sounds like a terrible idea
I can't imagine the monthly payment on a fifty year mortgage is much less than a thirty. Why not just have an infinitely long mortgage and pay only the interest?
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Old 12-27-10, 04:46 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

If more/bigger lenders offered them would it help our economy?
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Old 12-27-10, 04:51 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by movielib View Post
I can't imagine the monthly payment on a fifty year mortgage is much less than a thirty. Why not just have an infinitely long mortgage and pay only the interest?
Exactly. They are relatively common for commercial loans, and I have seen them for residential, but they are rare because there is almost no price difference.
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Old 12-27-10, 04:53 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Ask him what show he was watching.

And point out that Obama really can't be the president since he wasn't born in the US.
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Old 12-27-10, 05:15 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

It's true. The lack of a 50 year mortgage is the only thing keeping Obama from being the most popular President in the entire country.
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Old 12-27-10, 05:22 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by movielib View Post
I can't imagine the monthly payment on a fifty year mortgage is much less than a thirty. Why not just have an infinitely long mortgage and pay only the interest?
And its an ARM to boot. It souinds exactly like the questionable loans to marginal borrowers that caused our current mess in the first player. It would not have a "look good" outcome for Obama, and he would be wise to try to prevent them from being issued.
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Old 12-27-10, 05:26 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by movielib View Post
I can't imagine the monthly payment on a fifty year mortgage is much less than a thirty. Why not just have an infinitely long mortgage and pay only the interest?
Is there any difference between that and just renting a house?
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Old 12-27-10, 05:40 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Sean O'Hara View Post
Is there any difference between that and just renting a house?
Yes.

For one, tax deductions.

Two, equity.

C, you don't have to deal with kvrdave if you want to make improvements.
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Old 12-27-10, 06:51 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by kvrdave View Post
Exactly. They are relatively common for commercial loans, and I have seen them for residential, but they are rare because there is almost no price difference.
Commercial mortgages that long are usually leases on paper, but for accounting purposes are considered loans. It would be enormously advantageous to consider them leases only.
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Old 12-27-10, 06:56 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Sean O'Hara View Post
Is there any difference between that and just renting a house?
Damn, the kvrdave joke has already been done.
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Old 12-27-10, 08:40 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

(Your boss here)
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Old 12-27-10, 10:06 PM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Thor Simpson View Post
Yes.

For one, tax deductions.

Two, equity.

C, you don't have to deal with kvrdave if you want to make improvements.
Could you ever actually gain any equity on a 50 year mortgage?
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Old 12-28-10, 12:39 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Thor Simpson View Post
Yes.

For one, tax deductions.

Two, equity.
If you have a loan of infinite length where you only pay the interest, would you have equity?

C, you don't have to deal with kvrdave if you want to make improvements.
Kvrdave may be a slumlord, but he's not Bank of America.
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Old 12-28-10, 12:42 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

A 50 year mortgage would only be good for the lenders, it would be a terrible idea for everyone else. It would keep people paying interest and in debt longer, plus keep prices inflated by lowering the monthly payments to make those high prices accessible. If enough people can't afford mortages at 30 yr fixed payments, prices will drop so that they can afford them.
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Old 12-28-10, 10:24 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Save Ferris View Post
If more/bigger lenders offered them would it help our economy?
About as much as if more/bigger lenders offered interest only loans to everyone.
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Old 12-28-10, 10:26 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Sean O'Hara View Post
Is there any difference between that and just renting a house?
You make a much bigger non-refundable deposit w/ that + a lot of closing costs. But, you wouldn't be throwing your money away on rent.
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Old 12-28-10, 11:13 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by BKenn01 View Post
Could you ever actually gain any equity on a 50 year mortgage?
Of course, when the value of the property goes up. It's still not a good idea in most situations.
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Old 12-28-10, 11:25 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by Thor Simpson View Post
Of course, when the value of the property goes up. It's still not a good idea in most situations.
I can't think of a single situation in which a 50 year note would be a good idea for anyone but the lender.
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Old 12-28-10, 11:29 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

Originally Posted by orangecrush View Post
I can't think of a single situation in which a 50 year note would be a good idea for anyone but the lender.
I think it could work out fine if you planned to stay in a place for 5 years and it was your only loan option. 50 years doesn't mean a 50 year commitment. Refinancing down the road may be a good plan as well. Obviously the goodness of it falls apart if the market tanks, but that's true of any mortgage. I'm not saying it a great idea, but if it gets you what you want (a place of your own) and you have a solid plan for your future, I wouldn't rule it out.
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Old 12-28-10, 11:36 AM
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Re: My boss is claiming Racism on big lenders holding back on Obama

His point is that it would get more people into homes and having something of their own, and that this would help the economy.
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