scotty1560

Quantitative Easing and the Disappearance of Income

Frankly, I have no problem with low mortgage rates. Believe me,
the cost of living is going up in every walk of life, so paying less in
interest to a bank is not the problem. If it spurs buying, good, as long as the buyer has traditional income ratios, 20+% equity, and a fixed rate with 15-30 year loans.

Problem, was in qualifying, appraisals, HELOC scams, and lack of
enough equity. If banks held the line at 20% equity with no 2nd mortgages allowed, then we would not have this massive problem.

The game in Florida flippers was a 90% first mortgage and 15-20% 2nd mortgage, aka 110% mortgages. Not very sound business and we can see where that lead to, a collapse of our markets.