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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (24415)	10/11/2004 10:35:06 AM
From: Les H	Respond to of 306849

40-year mortgages offered in test to widen ownership By Mary Umberger Tribune staff reporter Published October 11, 2004 ... Officials at Fannie Mae and at Baxter Credit Union in Vernon Hills, which is participating in the test program, see the 40-year loans as a way to turn more Americans into homeowners. Critics view the loans as creating more nightmares in a society saddled with debt. "I thought the point of buying a home was to own it," said Amelia Tyagi, co-author of "The Two-Income Trap," an examination of American household debt. "With this thing, you pay until you die." She adds: "Sending the message that it's acceptable not to get that thing paid off for 40 years, that's a dangerous message. What happens if your roof springs a leak? What if you get laid off?" Robert Manning, a professor of finance at the Rochester Institute of Technology who teaches financial literacy, said Fannie Mae's efforts to expand homeownership could end up having the opposite effect. Putting more cash into the hands of first-time buyers, he said, enables them to drive up prices. "You are bringing more people into the market who should not be there," Manning said. "It makes it more unaffordable for those who want to do the right thing and save for a down payment and get a mortgage that's a realistic length." A generation ago, the 20-year mortgage was the only game in town. Now there are dozens of ways to borrow, and homeownership is at an all-time high. ... chicagotribune.com Housing is turning into a socialized product. I'm starting to notice local firms advertising for scrap metal and junk. Prices must be going through the roof...