Random rant on Credit issues...

[Zeus]

This sounds like money laundering. I'd proceed with caution.

I don't know about it being money laundering, but I would definitely consult an accountant before doing any of it. Do you happen to have any friends who are accountants or anyone you can talk to that won't charge you an arm and a leg?

[Airbozo]

I don't know about it being money laundering, but I would definitely consult an accountant before doing any of it. Do you happen to have any friends who are accountants or anyone you can talk to that won't charge you an arm and a leg?

I spoke with our accountant and our financial adviser and this is legit. It is not money laundering in any sense of the term. Anyone can walk in and with a minimum deposit can get the same rate on a year term investment. The only issue is if you try to take the money out before the term is over. You end up having to pay a huge penalty which negates any interest you have earned (and if I read the fine print correctly you forfeit any interest).

The main reason this seems odd is the interest rate we have on that line. It follows the prime lending rate which is currently at 5%. Trying to lock in a fixed rate would end up around 7-9%. (I think)

[stewart123]

It's killing me to hold back, but I totally understand.

In one sense I agree with him...in the other sense he is not considering how much money was made off of those people for the longest time that allowed rates to stay down along with the economy to keep booming because of the spending...personally, I have been very cautious for a long time.

[Airbozo]

In one sense I agree with him...in the other sense he is not considering how much money was made off of those people for the longest time that allowed rates to stay down along with the economy to keep booming because of the spending...personally, I have been very cautious for a long time.

I do understand both sides. I have considered how much money was made by everyone involved and how many people have lost their life savings. There again are 2 sides. On one side you have people trying to help those people trying to get into home ownership in an affordable way. You also have the people trying to get people into houses any way possible without thought to how those people would afford the house after the balloon payments.

But then again is it really the job of a mortgage broker to mind your finances? They get paid once the loan funds and they could (pretty much) care less after you sign the papers. I know when I go to buy a house what I can afford today and what I should be able to afford tomorrow. I even took into account what would happen if i lost my job and bought the most house I could afford at the time. If it was up to the real estate agent or mortgage broker I would be in a MC Mansion right now struggling to make payments.

_I_ took control of my finances and _I_ dictate how much I spend and act accordingly. My gripe here was not that reckless people have ruined the credit market for me, rather it was why should I be punished for those people spending recklessly. (close but not quite the same thing) I feel I should be rewarded for my good credit history and sane use of my present and future money.

...and I disagree that the rates stayed down and the economy was good. The economy has been crap since the republicans took office, even before the world trade center incident. Pushing rebate checks and preventing the collapse of the housing market has only made the bad times last longer. Of course that is all my opinion.

[stewart123]

You have to keep in mind too, that one of the big reasons for the mortgage crisis is because homes were over valued and the lenders didn't have much problem giving money way as long as an appraiser agreed on the value of the house (of course they also made more money on it at the time)...but now people sit back and look at the value of their house and just don't care much...People are afraid to buy because the values just keep dwindling....Things will get better soon.