A different bailout

[hotwire7]

I recently read 'Trillion dollar meltdown' a book about the current financial crisis

Comments

Re: Is it just the type of loan that's the issue? (I don't think so)

[elizilla]

The problem with changing from a 30 year loan to a 50 year loan, is that it hardly drops the payments at all. At 30 years, the first payment is already almost all interest - only about $20 or $30 goes to the principal. If you extend the loan to 50 years, the payment might only drop by five or ten dollars

Re: Is it just the type of loan that's the issue? (I don't think so)

[elizilla]

"The problem with changing from a 30 year loan to a 50 year loan, is that it hardly drops the payments at all. At 30 years, the first payment is already almost all interest - only about $20 or $30 goes to the principal. If you extend the loan to 50 years, the payment might only drop by five or ten dollars

Re: Is it just the type of loan that's the issue? (I don't think so)

[elizilla]

Don't even get me started on V-Stroms. Unless, of course, you want to buy this one, so I can buy another 20 year old Honda and reduce the amount of wrenching I have to do regularly just to keep the darn thing streeted.