![]() ![]() ![]() Simply put, houses are not very affordable in America. And mortgage rates have gone up as well, meaning homebuyers have to grapple with larger mortgage payments.Īccording to data from the Mortgage Bankers Association, the median mortgage payment for applicants was $2,093 in March, up 1.6% from $2,061 in February. Federal Reserve has implemented significant interest rate hikes to tame rampant inflation. Here's How To Invest In Its Real Estate Before That Happens Techies Will Soon Flood Austin Even Harder. 'People-First' Real Estate Fund Shares Rent With Tenants While Generating Strong Returns For Investors To be sure, buying a house can be quite a burden in today’s environment. “The worst part about this is that it’s going to further undermine the solvency of our banking system because banks are going to be encouraged and actually required to make more loans to riskier borrowers, which means more mortgages are going to end up in default,” Schiff warned. While the new rule could lead to more people becoming homeowners, it does not bode well for America’s banks, according to Schiff. But now, Biden wants the better rates to go to people that don’t make a big down payment.” “Normally, if you make a big down payment, you get a better rate. “This new rule encourages people to make smaller down payments than they might otherwise have made,” he said. Schiff, who successfully predicted the financial crisis of 2008, pointed out the issues with this change. Schiff’s response was, “Just miss a few payments, screw up your credit score. Because some borrowers with good credit may end up paying higher fees compared to those with lower credit scores, the change has sparked a discussion.Īmong the critics is Peter Schiff, CEO and chief global strategist at Euro Pacific Capital.ĭuring an interview posted on Schiff’s YouTube channel, the host shared his intention to buy a home but voiced concerns about getting punished if the plan goes through because of his good credit score. Mortgage fees are changing under the new rules from the Biden administration’s Federal Housing Finance Agency. ![]()
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