Five U.S. Senators introduced a bill in September to create a new program to help lower-income, first-generation, first-time home buyers. Instead of giving first-time home buyers a $15,000 tax credit like the Biden campaign proposed last year, this new proposal would make mortgages 10 years shorter. Home buyers in this program could borrow the same amount of money but they would pay off their mortgages in 20 years instead of 30 years – with roughly the same monthly payments. The program would not drive up house prices for all future home buyers like a $15,000 tax credit would.
Sounds good in theory. Is there a study following low income ownership results. Or some way of predicting the real wealth effect? I would rather see the government pay into an escrow account each month for big ticket house repairs or verified income shortfalls/inability to make mortgage payments due to health, etc. Enable owners to avoid distressed sales. Payoff party at the end. Vs. foreclosure due to poor property condition and income loss at a market downturn which is precisely when money is needed and credit drys up. why didn't we refinance the guy with mortgage due as well as payment due on his truck used for hauling aggregate during downturn? Today he is making big bucks again but renting a house an investor picked up for 93k and would sell for 275k today, albeit gussied up a tad.
Sounds good in theory. Is there a study following low income ownership results. Or some way of predicting the real wealth effect? I would rather see the government pay into an escrow account each month for big ticket house repairs or verified income shortfalls/inability to make mortgage payments due to health, etc. Enable owners to avoid distressed sales. Payoff party at the end. Vs. foreclosure due to poor property condition and income loss at a market downturn which is precisely when money is needed and credit drys up. why didn't we refinance the guy with mortgage due as well as payment due on his truck used for hauling aggregate during downturn? Today he is making big bucks again but renting a house an investor picked up for 93k and would sell for 275k today, albeit gussied up a tad.