Comments on: What caused the home mortgage rates to sky rocket, causing people being unable to pay their monthly mortgages?

By: ?

Mon, 08 Mar 2010 01:18:16 +0000

Adjustable rate loans that are no longer at their teaser rates. Lending guidelines and lie to me loans that qualified hotel room attendants that earn 45k a year for $750,000 mortgages . And real estate prices that continually rose.

hope it helps

By: Todd S

Todd S — Mon, 08 Mar 2010 00:20:22 +0000

High rates weren’t the issue…rates were actually very low, which allowed millions to refinance and pull out cash from their homes, while others bought homes at super low interest rates with next to nothing down. The high home prices led to extreme affordability measures like option arms and 100% financing.

Rates are currently at all time lows thanks to government intervention, but they’ll eventually climb again as the economy improves.

http://www.thetruthaboutmortgage.com/what-causes-mortgage-interest-rates-to-move/

There’s a whole lot more to it, and you’re missing the mark pretty bad. You’ll probably fair quite badly on your book report if you don’t do some more research.

By: Captain Parker

Captain Parker — Mon, 08 Mar 2010 00:00:10 +0000

NO. Too many people got sucked into giving an ARM — never considering that their rate would go up. Well, their rates went up, way up.

By: Old Guy

Old Guy — Sun, 07 Mar 2010 23:07:23 +0000

A simplified answer is that during the Clinton admin, there was a Dem push for making banks loan money to underqualified minorities, called the Community Development Act. Barney Frank and Chuck Shumer, both dems pushed Fannie Mae and Fannie Mac to underwrite these types of extremely risky loans.
Eventually, the financially underqualified loans resulted in the forseeable; you shouldn’t loan money to people who you know thru history will not be willing or able to repay it..and the bubble burst.

By: Poor Richard

Poor Richard — Sun, 07 Mar 2010 22:17:55 +0000

It was dumbasses who could’t afford house payments in the first place getting ADJUSTABLE RATE MORTGAGES. You need to knock off the Michael Moore wannabe crap, because it’s NOT working for you.

By: Greg

Greg — Sun, 07 Mar 2010 21:26:33 +0000

Generally, mortgage rates didn’t skyrocket.

Some sub-prime and alt-A mortgages reset after two years allowing the lender to raise rates however. But… rates are lower now than ever thanks to the Government using FHA, Fannie and Freddie to finance over 90% of all home loans and the fact that we are in a liquidity trap.

By: Philip McCrevice

Philip McCrevice — Sun, 07 Mar 2010 21:00:28 +0000

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

Democrats overstepping their entitlements.

By: lsuitln18

lsuitln18 — Sun, 07 Mar 2010 20:18:37 +0000

someone buying a 200K home without a down payment and only taking in 50K gross. Irrational exuberance, greed caused the crisis. nothing more, nothing less.

By: i love Ginger

i love Ginger — Sun, 07 Mar 2010 20:09:20 +0000

barney frank,chris dodd,ACORN,and all other democrats forcing banks to give loans to PEOPLE WHO COULD NEVER PAY THEM BACK..

By: Chupacabra

Chupacabra — Sun, 07 Mar 2010 19:54:24 +0000

You have it in backwards. The fact that people couldn’t pay their mortgages caused the great depression we’re in now. A lot of banks had to close