Pages: 1

 

Poll

Would you support a bill letting people buyout there own home loans?

Yes i support the right to buy out your own loan.93%93% - 14
No i dont support the right to buy out your own loan.6%6% - 1
Total: 15
2008-01-14 13:29:35
David.P
Banned
+649|6708
Say you got out a 10 year loan 5 years ago for 1 million dollars with 10% interest. You've paid off half of it already and still have 550,000 with interest to pay off. Now say your bank is going under and they are selling off loans 1 by 1. Would it be possible to buy your own loan for a say a sum close to the amount left you have to pay off? Or do banks only sell the loans to other banks and financial institutions? If so would you support a bill letting private citizens buy out there own loans if their bank is going under? If not why?

EDIT: This is a 2 part question. So please wright your replies down if you vote.(I see 2 votes already for yes and i null voted)

Last edited by David.P (2008-01-14 13:35:50)

2008-01-14 13:57:33
S.Lythberg
Mastermind
+429|6881|Chicago, IL
Yes, I would support the bill, primarily because I plan on being in a similar situation at some point in my life, but I think that higher risk involved for the bank (less payout on a bought out loan) would likely raise interest rates for those who could not afford to pay a lump sum like that.

Would this apply only to failing banks, or any bank, once you get enough cash together?
2008-01-14 14:10:02
deeznutz1245
Connecticut: our chimps are stealin yo' faces.
+483|6927|Connecticut

David.P wrote:

Say you got out a 10 year loan 5 years ago for 1 million dollars with 10% interest. You've paid off half of it already and still have 550,000 with interest to pay off. Now say your bank is going under and they are selling off loans 1 by 1. Would it be possible to buy your own loan for a say a sum close to the amount left you have to pay off? Or do banks only sell the loans to other banks and financial institutions? If so would you support a bill letting private citizens buy out there own loans if their bank is going under? If not why?

EDIT: This is a 2 part question. So please wright your replies down if you vote.(I see 2 votes already for yes and i null voted)
10% WTF!!!!!!!! Then you deserve to be punched in the face for being an asshat. Anyone who could get financed for a Million has both the credit and a well paying job to finance for AT LEAST  under 7%.
Malloy must go
2008-01-14 14:13:10
deeznutz1245
Connecticut: our chimps are stealin yo' faces.
+483|6927|Connecticut
Also, most loans are stipulative in interest vs principle. If you pay too much towards principal in one year you will be fined a certain amount. So you would have to ensure that when you signed your mortgage loan during the closing that rule is not in place. By the way, if you have never closed on a home before it is sort of like being molested for 3 1/2 hours by a rusty cheese grater.....with no lube.

Last edited by deeznutz1245 (2008-01-14 14:13:34)

Malloy must go
2008-01-14 14:20:50
Ilocano
buuuurrrrrrppppp.......
+341|7102

Null Vote.

If you have the money to buyout the home loan, just pay the closing balance.  If you are stupid enough to agree to a pre-payment penalty, well...
2008-01-14 14:29:40
deeznutz1245
Connecticut: our chimps are stealin yo' faces.
+483|6927|Connecticut

Ilocano wrote:

Null Vote.

If you have the money to buyout the home loan, just pay the closing balance.  If you are stupid enough to agree to a pre-payment penalty, well...
It is not a matter of stupidity. Many states that offer first time home loans do it. Also, some loans incorporate that clause in exchange for no PMI.
Malloy must go
2008-01-14 14:45:45
ATG
Banned
+5,233|6964|Global Command
Seems odd, either way, said HO would have to borrow the money from somebody.

If you want to pay of your mortgage early there is nothing stopping you now.https://i19.tinypic.com/42s1u34.gif
2008-01-14 14:47:29
Fredrik
i hate you all
+201|7083|Norway
In Norway we can move our loans to any banks we want to any time (i think)

Voted yes
2008-01-14 14:57:03
Ilocano
buuuurrrrrrppppp.......
+341|7102

deeznutz1245 wrote:

Ilocano wrote:

Null Vote.

If you have the money to buyout the home loan, just pay the closing balance.  If you are stupid enough to agree to a pre-payment penalty, well...
It is not a matter of stupidity. Many states that offer first time home loans do it. Also, some loans incorporate that clause in exchange for no PMI.
AKA, predatory loans.  Having a prepayment penalty is just stupid.  It locks people from easily moving out or to refinance.  AKA, stupidity.  Either figure out how to get 20% or more, or accept PMI.  If you have to second mortgage that PMI, then you can't afford that house.

BTW, screw Hillary Clinton's campaign promise to freeze subprime loans for 5 years.  If you could only afford a home with teaser rates, rather than the real market rate, then you don't deserve to own that home.  Screws us all who can afford homes and have to deal with all these overpriced homes that we have now.

Also, closing my homes were painless.  Just all the damn initials...
2008-01-14 15:15:26
deeznutz1245
Connecticut: our chimps are stealin yo' faces.
+483|6927|Connecticut

Ilocano wrote:

Also, closing my homes were painless.  Just all the damn initials...
Thats pretty much what I was referring to. Initial and date the top and bottom of every page....all 200 of them. BTW, what was that page about promising to not store nuclear or hazardous waste on your property? Or is that just a CT thing?
Malloy must go
2008-01-14 15:20:07
deeznutz1245
Connecticut: our chimps are stealin yo' faces.
+483|6927|Connecticut

Ilocano wrote:

deeznutz1245 wrote:

Ilocano wrote:

Null Vote.

If you have the money to buyout the home loan, just pay the closing balance.  If you are stupid enough to agree to a pre-payment penalty, well...
It is not a matter of stupidity. Many states that offer first time home loans do it. Also, some loans incorporate that clause in exchange for no PMI.
AKA, predatory loans.  Having a prepayment penalty is just stupid.  It locks people from easily moving out or to refinance.  AKA, stupidity.  Either figure out how to get 20% or more, or accept PMI.  If you have to second mortgage that PMI, then you can't afford that house.

BTW, screw Hillary Clinton's campaign promise to freeze subprime loans for 5 years.  If you could only afford a home with teaser rates, rather than the real market rate, then you don't deserve to own that home.  Screws us all who can afford homes and have to deal with all these overpriced homes that we have now.

Also, closing my homes were painless.  Just all the damn initials...
I bought my second home about a year ago. I had equity in my first house so I put down 20%, no PMI obviously and got a fixed 6.1% so I am pretty lucky. My wife is a nurse but our son is only 16 months so I prefer her to stay home with the boy rather than day care. That being said I'm sure you know the costs of being a homeowner so we do not live a frivolous lifestyle but you are right, there are people that own homes that can't afford it but got loans anyway. They have no business taking on that responsibility that early.
Malloy must go
2008-01-14 15:32:49
Skorpy-chan
Member
+127|6780|Twyford, UK
Null vote, I have no idea what you're on about.
2008-01-14 16:36:28
Kmar
Truth is my Bitch
+5,695|7035|132 and Bush

deeznutz1245 wrote:

David.P wrote:

Say you got out a 10 year loan 5 years ago for 1 million dollars with 10% interest. You've paid off half of it already and still have 550,000 with interest to pay off. Now say your bank is going under and they are selling off loans 1 by 1. Would it be possible to buy your own loan for a say a sum close to the amount left you have to pay off? Or do banks only sell the loans to other banks and financial institutions? If so would you support a bill letting private citizens buy out there own loans if their bank is going under? If not why?

EDIT: This is a 2 part question. So please wright your replies down if you vote.(I see 2 votes already for yes and i null voted)
10% WTF!!!!!!!! Then you deserve to be punched in the face for being an asshat. Anyone who could get financed for a Million has both the credit and a well paying job to finance for AT LEAST  under 7%.
Clearly you weren't around during the 70's. . Insane rates back then.. so I hear.

I have a 5.5 fixed 30 with no prepayment penalty. If someone wants to carry the note I'm fine with it. I could put my money other places and get a better return.
Xbone Stormsurgezz
2008-01-14 16:39:07
Pug
UR father's brother's nephew's former roommate
+652|6977|Texas - Bigger than France
Well, this is an easy one.

If you are dumb enough to sign a loan agreement that denies you the right to retire the debt at anytime, you are a moron.

 

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