Is your mortgage percent correct..I bet not

Just a few thoughts for today. I have been doing my research. The news and information that was given out on how the banks failed and how people lost their homes has given the impression that We The People over extended ourselves by putting ourselves in homes we could not afford. This is not true. We were innocent.

Here is the true scenario.

We took out loans to purchase a home or refinance. We were sold a loan at around 8.75% the banks and mortgage companies never intended us to have these loans for the 25 – 30 years. The reason for this is they did not want to loan out their money at that rate for that long a period of time. They wanted access to their money to reinvest at as high a rate as they could get. So they wrote the loans attached to the indexes which is the average of interbank offered rates for six-months U.S. Dollar-denominated deposits in the London market (LIBOR), as published in the Wall Street Journal) This information is available online now at

 http://mortgage-x.com/general/indexes//wsj_libor_history.asp?y=2006

The information is from 1993 – 2010. Once they had this index on the date needed they added points

for example your loan was written for 8.75% on a certain date lets take 07/17/2006 the Index was 5.58 they then added points to this 6.50 on the one I have which it a total of 12.18%. Your mortgage only guaranteed the 8.75% rate for Two Years. After two years they were allowed to increase up to 10.75% BUT it could never go lower then 8.75% then they could adjust your rate Ever Six Months. They Did have a cap but the cap was 14.75. For a Mortgage Loan. They never wanted us to have these loans for more than Two Years. They wanted the money back in Two Years or Less. We The People did not understand that. We the people had taken out adjustable rate mortgages before but the loans were not written in this way. The veritablee rates were attached to the Libor BUT prior to this time they were not adding 6.50 onto thatvariable.. The representatives of the Banks and Mortgage Companies led us to believe we would be able to refinance after the two years to an even lower rate.

Again they never wanted to finance our homes for 25 – 30 years they wanted to invest there money for only two years. Now the problem came that when We the people went out looking for the better rates just before or after the two years.. No One Was Giving out 25-30 year fixed rate mortgages. The banks and mortgage companies knew we could never pay on a 10.75% – 14.75% mortgage. The banks no longer wanted to finance homes for We The People. So even people with good credit and employed in good jobs could not find financing for there homes as they were lead to believe.

If you have a veritable rate mortgage maybe you have not actually checked if the rate is accurate. Here is what I found I have been paying 11.875 % since the end of 2006. And guess what they had no problem putting my rate up. But since the end of 2007 I should have had an 8.75% mortgage they have never put it down.

Now remember when all these loans failed and people were foreclosed the banks were paid with the insurance policies they took out through AIG insurance companies. They Knew if we did not refinance our homes at the end of two years we would never be able to afford the loans so they not only protected themselves they had us pay the premium for them for this insurance. These two companies were bailed out by the We The People’s Money to the tune of 380,000 Millions. This is correct we paid them 380 Billion Dollars with is 380,000 Millions.

I know that the Democrats and Republicans both voted to bail them out. But at least the Democrats agreed to help We The People with the unemployment problem they caused. The Republicans did not we need to send a clean message we are not happy the Republicans gave us the chance to do this by all voting against us (Except Sen Susan Collins and Sen Olympia Snowe)

Check Your Mortgage papers see what you should be paying. If you can not figure it out contact me.