The Mortgage Crisis
I've heard a lot of suggestions for helping folks stuck in too high home payments for homes and loans that they probably shouldn't have gotten in the first place.
I've heard some say the banks should renegotiate the loans to reduce the principal to current makret value. I'm not sure that i agree with this, but it's more me being bitter that others would received this and I and others who didn't get themselves in this situation would have to help pay for it.
I've heard some say that their interest rates should be lowered.
This sounds ok, but I'm not entirely clear on what effects it could have and need to learn more.
What I haven't heard is anyone saying to make their loan terms longer, like turn their 30 year in to a 45 year. Wouldn't that help lower their monthly payments AND protect the banks from losing money?
Wouldn't that allow people to stay in their home?
Is there a reason why that isn't possible?