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Answers (16)
Best Answer
- SoCal_Engr
- Contributions:5667
I think that the government hasn't, and won't, ever decide to actually finance any "tax cuts" by a corresponding cut in spending. There's too many votes dependent on the government programs.
What's scariest about this is the abstraction of "the tax" from "the benefit". GSE fees on FHA taxes to pay for Social Security? The more abstract and convoluted it all can get, the harder to undo.
The "sad part"? All they're doing is shifting the tax burden around, and likely putting it square on the shoulders of those they claim to be trying to help. I'd rather they let the payroll tax "cut" expire. Better yet, how's about relieve the need for taxes by cutting spending?
What's scariest about this is the abstraction of "the tax" from "the benefit". GSE fees on FHA taxes to pay for Social Security? The more abstract and convoluted it all can get, the harder to undo.
The "sad part"? All they're doing is shifting the tax burden around, and likely putting it square on the shoulders of those they claim to be trying to help. I'd rather they let the payroll tax "cut" expire. Better yet, how's about relieve the need for taxes by cutting spending?
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Clay- In response. You as I and so many others think this new taxation is improperly being forced upon Fannie Mae and Freddie Mac borrowers, which primarily are America's "middle class hard working families."
The fact is there is not a thing we can do to change this ruling. "You may think it is good news it is only 10-12 bps but how can taxing mortgages to pay for a "tax holiday" be good news." This was not the intention of that statement of mine to be interpreted as you have done. What I meant by that is 10 bips is much better than a 100. To me that is good news. Best wishes.
Happy holidays, Rudi
The fact is there is not a thing we can do to change this ruling. "You may think it is good news it is only 10-12 bps but how can taxing mortgages to pay for a "tax holiday" be good news." This was not the intention of that statement of mine to be interpreted as you have done. What I meant by that is 10 bips is much better than a 100. To me that is good news. Best wishes.
Happy holidays, Rudi
- Clay Branch, "Georgia Loans"
- Contributions:7838
Socal's response deserved the best answer, good choice. The extra 10-12 bps in guarantee fees will result in about $17/month on a $200K loan, so aprx $34/month on a $400K loan. You may think it is good news it is only 10-12 bps but how can taxing mortgages to pay for a "tax holiday" be good news. The "pay for" should be to CUT that amount from the billions they waste everyday in DC. Maybe it will hit home the next time they tax something like tires, soft drinks, diapers, medicine, etc, etc, etc...99% of the people that will be affected are middle class, or "working families" as they like to say. This tax is as disgusting as the embedded tax in Obama Care that affects anyone exceeding the $250K cap gains exemption
( single person ) upon sale of their primary residence.
( single person ) upon sale of their primary residence.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
I just received an update on H.R. 3630.G-Fees. Effective 4/1/2012 all
G-Fees will go up 0.10%.
Also during the first "part" of 2012 they will determine whether there will be further increases. F/F mortgages will rise by a similar amount on 4/1/2012. As Dan had stated earlier, this is a minimal rate increase. Which is good news for all concerned.
Happy funding, Rudi
G-Fees will go up 0.10%.
Also during the first "part" of 2012 they will determine whether there will be further increases. F/F mortgages will rise by a similar amount on 4/1/2012. As Dan had stated earlier, this is a minimal rate increase. Which is good news for all concerned.
Happy funding, Rudi
- hpvanc
- Contributions:2579
Here's my pie in the sky hope:
It will force more community bank and credit union lending (not correspondent lending) that initially funds loans and sells fractions of the loans directly to private investors without the federal government as an intermediary.
I think it would be a great thing for the future of the economy if the federal government and its quasi-government entities were not the least expensive and primary lending options.
It will force more community bank and credit union lending (not correspondent lending) that initially funds loans and sells fractions of the loans directly to private investors without the federal government as an intermediary.
I think it would be a great thing for the future of the economy if the federal government and its quasi-government entities were not the least expensive and primary lending options.
- Pasadenan
- Contributions:21466
Even if they did go up 1%, that is still less than the 5% being touted as the "lowest interest rates ever" 12 months ago.
And for a 2 month extension of the "government pays the social security tax" we are expecting a permanent new tax for government backed mortgage loans????
I don't think so... it is just politics and marketing propaganda. A better thing to do is shut down those government agencies that used to be semi-independent government sponsored companies. We don't need them, and you can't get market competition if the have to competed with subsidized government agencies and government programs.
And for a 2 month extension of the "government pays the social security tax" we are expecting a permanent new tax for government backed mortgage loans????
I don't think so... it is just politics and marketing propaganda. A better thing to do is shut down those government agencies that used to be semi-independent government sponsored companies. We don't need them, and you can't get market competition if the have to competed with subsidized government agencies and government programs.
- Dan, "the_country_hick"
- Contributions:4699
Rudi, that makes more sense. As I said before 0.1% is negligible. 1.0% is a big difference. Perhaps this will finally be a part of allowing prices to normalize as interest rates start up a little on the way to where they truly belong long term.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Dan- bps = basis points. bps is usually pronounced as "bips."
100 bps = 1%, not 0.1%. I hope this helps.
Happy funding, Rudi
100 bps = 1%, not 0.1%. I hope this helps.
Happy funding, Rudi
- Dan, "the_country_hick"
- Contributions:4699
Connie, surely you realize that those who have some assets do not deserve them. Those who have nothing and are deep in debt deserve to be freed from that debt they had absolutely nothing to do with creating.
At least that seems to be the message we are being fed these days.
I know I was getting paid a lot better interest on about 1/4 of what I have now many years ago. The real bear is that inflation (extra money printing) is taking more than interest is giving back. Add in taxes on non-income which is really a financial loss and it just gets more absurd.
Rates should rise. I still do not get this idea I guess. I thought a 100 bp was 0.1%. That is negligible. Perhaps Rudi can explain it better so I can understand the issue better..
At least that seems to be the message we are being fed these days.
I know I was getting paid a lot better interest on about 1/4 of what I have now many years ago. The real bear is that inflation (extra money printing) is taking more than interest is giving back. Add in taxes on non-income which is really a financial loss and it just gets more absurd.
Rates should rise. I still do not get this idea I guess. I thought a 100 bp was 0.1%. That is negligible. Perhaps Rudi can explain it better so I can understand the issue better..
- ConnieK_ppm
- Contributions:97
personally I'd like to see rates go up. I'm a little tired of the pennies my savings account earns and would like to see dollars again. Let's start rewarding people for saving instead of rewarding for borrowing.
- Pasadenan
- Contributions:21466
Well, the Frank Dodd's bill was supposed to substantially increase fees and rates last Spring when we were at about 5%, and I was saying 5% through August... but then look what happened in August! And then the FED stepped in again and stated they would do the "twist" to keep rates down.
It doesn't matter what congress and HUD and FHA, Frannie, Freddie, and Gennie do with the fees! If the FED has stated they will regulate by controlling the demand of MBS and T-Bills with moving around huge amounts of money, they over-ride anything that these other government entities do.
It is all worry over nothing to create artificial demand for "borrow now", "don't wait".
It doesn't matter what congress and HUD and FHA, Frannie, Freddie, and Gennie do with the fees! If the FED has stated they will regulate by controlling the demand of MBS and T-Bills with moving around huge amounts of money, they over-ride anything that these other government entities do.
It is all worry over nothing to create artificial demand for "borrow now", "don't wait".
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Dan- The TBWS link is really for those in the industry. I can understand why you maybe did not grasp their thinking on why rates "will" go up, or to what extent.
Did you read my 2nd link? This may help you to better understand the possible consequences more fully. If you have read it, I do not know how to respond to your question, that may clarify this for you, in a easier to understand manner. Maybe, another person will chime in to clarify this better for you.
Happy funding, Rudi
Did you read my 2nd link? This may help you to better understand the possible consequences more fully. If you have read it, I do not know how to respond to your question, that may clarify this for you, in a easier to understand manner. Maybe, another person will chime in to clarify this better for you.
Happy funding, Rudi
- Dan, "the_country_hick"
- Contributions:4699
4.0 or 4.1%? Lenders say not to worry about getting that last 1/4% so why would this make any real difference? If it was at least a 1.0% increase it could have some effect.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Pasa- The possibility is the new fees that may create this. With all the new regulations, lenders can only absorb so much, without passing it on to consumers. Congress did agree on the recent two month extension. And, I believe that many of our elected officials are getting concerned about their poor ratings with their constituents. Election time is about nine months away. ... Best wishes, Rudi
- Pasadenan
- Contributions:21466
No impact....
First, congress can't agree on anything. Second, the Federal Reserve is tightly controlling the interest rates with large purchases and sales of MBS and T-Bills; and they've indicated they intend to continue doing so to provide stability to long term interest rates for the foreseeable future. Third, the Chinese are going to continue to "subsidize" U.S. interest rates, as there really is no other stable place for them to "park" their trade imbalance funds.
First, congress can't agree on anything. Second, the Federal Reserve is tightly controlling the interest rates with large purchases and sales of MBS and T-Bills; and they've indicated they intend to continue doing so to provide stability to long term interest rates for the foreseeable future. Third, the Chinese are going to continue to "subsidize" U.S. interest rates, as there really is no other stable place for them to "park" their trade imbalance funds.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
What do you think? Rates may soon go up by H.R. 3630
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- 0.0/5.0
Contributions:7435Happy funding, Rudi
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