Mr. Beckom does not understand mortgages, apparently.
Mortgage rates for regular mortgages are fixed at the time you borrow the money. That means if the current mortgage rate drops below what you agreed to, you still have to pay what you agreed to (you can refinance if you want). And, if the mortgage rated soar, you still pay the lower rates you agreed to. You can not be put in jail for refusing to pay a higher mortgage rate than what you agreed to, because no one can raise it.
If you get an adjustable mortgage, your rate will vary. I never really understood how the banks determine when and how much they can increase your rate, so I never got one. But, if you got one, you agreed to the terms and you have to pay.
Mr. Beckom may be referring to mortgage fees, which are different. They are upfront costs that banks charge to obtain the loan. My understanding is that the feds are lowering the fees charged to poorer home buyers and raising them for richer ones. The idea appears as an attempt to lower the cost of home ownership for people of lesser means.
Home ownership is the best way to establish wealth and a stable family economy. Given the soaring price of rents, it seems a wise move.
Mr. Beckom does not understand mortgages, apparently.
Mortgage rates for regular mortgages are fixed at the time you borrow the money. That means if the current mortgage rate drops below what you agreed to, you still have to pay what you agreed to (you can refinance if you want). And, if the mortgage rated soar, you still pay the lower rates you agreed to. You can not be put in jail for refusing to pay a higher mortgage rate than what you agreed to, because no one can raise it.
If you get an adjustable mortgage, your rate will vary. I never really understood how the banks determine when and how much they can increase your rate, so I never got one. But, if you got one, you agreed to the terms and you have to pay.
Mr. Beckom may be referring to mortgage fees, which are different. They are upfront costs that banks charge to obtain the loan. My understanding is that the feds are lowering the fees charged to poorer home buyers and raising them for richer ones. The idea appears as an attempt to lower the cost of home ownership for people of lesser means.
Home ownership is the best way to establish wealth and a stable family economy. Given the soaring price of rents, it seems a wise move.