Watch: They’re Baaaaaaack. No Silly, Not Bootcut Jeans, Low Down Payments On Mortgages
Today’s MSB News Flash: Banks offer ultra low down payments on mortgages in return for interest payments from you until you’re 358 years old.
The News - What is everyone talking about?
- CNN just reported on TD Bank’s “Right Start” program. This is only one of many examples where banks are allowing people to put as little down as 5% of the purchase price of a home.
MakinSense of The News
- The purpose of these loans is to “help people” who don’t have enough money for a down payment of what most lenders require, 20%.
- Sounds super helpful to loan me a large sum of money for a high interest rate that I’ll be paying you until I’m 267 years old.
- The real reason these banks are offering these loans is because the other people (the government) use to offer more of these loans. But that didn’t work out so great for them in the mortgage meltdown so they’re being a hair more strict now with who they offer loans to (if you’re really good at fixing websites, you might have an angle there).
- So now there’s an opportunity for banks to step in with low down payment loans that “offer” high interest rates.
- Dear banks, you are so helpful. Until you’re not helpful and encourage people to take out loans who really can’t afford it. And then…..