John McCain suggested during the second Presidential debate that the government should buy existing mortgages from lenders and then issue new loans to homeowners based on the current, reduced value of their home, and at a lower interest rate.
Let me put this straight – this idiotic idea is not from a conservative.
Wouldn’t it be nice if your mortgage principal, and interest, ratcheted down just because your home temporarily became worth less. Or, because you were behind in payments because you weren’t paying your loan.
He wants to soak all taxpayers, including responsible homeowners, to help a few.
Who gets helped? Ah, the golden question.
Apparently, only those behind in their payments, or those owing more than their home is worth, or those with rates about to adjust up beyond what they can afford.
So, if you want a better loan and lower interest rate, better stop paying your mortgage!
Who cares. The lender will be paid in full by the government. The taxpayers (you, me, and everyone else) absorbs a huge loss, and you get a better mortgage loan.
Sign me up.
Who values the homes? When is the valuation made? Who determines if a future rate adjustment is too much? Who determines if you can’t afford to make payments, or are being sneaky and just not paying? Who came up this? I can’t believe it came from a Republican. Oops, my mistake. It wasn’t. It came from a maverick – whatever that is.
John McCain. American Idiot.