Prime Rate Credit

You’d think that the government intervening to save people from increased ARM mortgage loan interest rates and bailing scores from impending foreclosure would be welcome. To those that is bails out, it most certainly is, but to those of us that pay the taxes to help bail those out of trouble that may not have exactly done their homeword when signing up for loans they inevitably couldn’t afford, it’s really not so great.

We all know that the government may step in to subsidize certain things, like crops of fruits and veggies from America’s farmers, but when they stepped in recently to help bail out subprime mortgagees who couldn’t handle their payments and were either going to need lower payments and less interest, or an iminent foreclosure, some people got downright mad.

You see, it is your tax dollars, and you could get angry about that, but also you may want to look at it more in a “cup half full” way as well. First of all, you are keeping homes occupied in neighborhoods, and hopefully driving up property values in that area, and second of all, on a purely altruistic level, you are charitable and willing to help your fellow man in crisis for making a not so sound financial decision.

Third, from a purely practical point of view, you are helping (hoping) to educate people and financial institutions that borrowing money is serious business and when it is borrowed irresponsibly, or loaned out irresponsibly, it can have dire consequences. What side of the fence do you think you’re on? I’m on the fence a little on this one. I feel like people should be made accountable, but also believe in the greater good. Use a mortgage calculator to make sure you know what you’re getting into.