Jan 31
Moral hazard notwithstanding, if the government offered 30-year fixed mortgages, at 4% and assumable to any homeowner, the follow would occur: a) banks would be paid off at 100 cents on the dollar, b) homeowners would have a cheaper monthly note and more disposable income, c) home prices would stabilize, and d) the difference between the old mortgage and the new one would be applied to the borrower’s income taxes over 30 years.
via Seeking Alpha.
