My way to ease the mortgage problem and get Americans to gain confidence to spend money is very basic.It will not cost the government zillions of dollars.
Every person who has a mortgage will for 2 years from the starting date pay 1/2 of their regular mortgage.At the end of the mortgage they will pay 2 additional years 1/2 the mortgage.In this plan the government will not have to print billions of dollars to stimulate the economy the money people are saving each month will build the confidence necessary to start spending again.The banks will not have nearly as many homes in default which will raise home values.Instead of spending money for banks the government can concentrate on creating even more jobs.
Please feel free to drop me a line to explain in greater detail some of my plans.
They are so simple that they will work.........
Thanks,mike
- by
Michael Cirella
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Comments
This will not work.... Suppose for the next two years, you pay only the interest on the mortgage. Then, if you extend the mortgage by two years, the loan payments for that period of time will be the same as the original mortgage. (Assuming a fixed rate mortgage.)
-BigCowboy
One thing which might work is for the government to make pre-payment penalties illegal, then route a person's income tax refund automatically into paying the principal of their mortgage.
Posted by Big Cowboy on 01/31/2009 @ 08:08PM PT