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How can they make you default on your mortgage? Your payment is made of 3 things, the home loan, property tax, and home insurance. The Fed influences mortgage i
by toshinoriyagi 2y ago
How can they make you default on your mortgage? Your payment is made of 3 things, the home loan, property tax, and home insurance. The Fed influences mortgage interest rates by adjusting the Federal Funds Rate. Even if it does impact mortgage rates, it would only affect the extremely small subset of people with variable rate loans.This still only impacts the home loan, not insurance/tax.
One of the hallmarks of countries suffering hyperinflation/other monetary disasters is lack of a central bank because the legislatures fail to wield the power responsibly. It is another check and balance, and virtually ever economically stable country has one.
- JumpCrisscross 2y agoI assume they have a floating-rate loan [1]. [1] https://www.investopedia.com/terms/a/arm.asp https://www.investopedia.com/terms/a/arm.asp
- toshinoriyagi 2y agoYeah, that's what I meant by variable rate, but ARM is the appropriate term. Thanks.
- asdasdsddd 2y ago> One of the hallmarks of countries suffering hyperinflation/other monetary disasters is lack of a central bank because the legislatures fail to wield the power responsibly. It is another check and balance, and virtually ever economically stable country has one. The original point of the Fed was to be a common reserve for banks which makes complete sense. Somewhere along the way, we told the fed to manipulate credit to fix inflation and unemployment and now we have a board that is virtually unfirable that can basically tax (inflate) you at any time and the theres nothing that the president nor congress can do.
- JumpCrisscross 2y ago> a board that is virtually unfirable Trump fired Yellen.