The Survival Of The 30-Year Fixed-Rate Mortgage

I personally could not give a damn whether or not the 30-year fixed rate mortgage survives.

I don’t think I’ll ever be in a position to buy a home.

I have no assets. I’m judgment-proof. Go ahead and sue me. What will you get? A couple of old suits?

I don’t fetishize the 30-year fixed rate mortgage for America. So what if it has been the preferred method of financing mortgages for generations. What’s sacred about that?

I say get rid of government interference and subsidies to housing and let the free market sort things out.

Marketwatch reports: Fannie and Freddie have long been crucial to the housing market, guaranteeing or owning roughly 50% of the residential mortgage market. Including Federal Housing Administration loans, the government was responsible for about 95% of all U.S. mortgage origination between 2008 and 2010, according to a Bank of America analysis.

The two firms currently charge a fee for guaranteeing credit risk.

Legislators are seeking to reform the two companies, with many Republicans calling for a virtually privatized system in which the government’s role in the mortgage market would be significantly reduced, in part, by making government guarantees more expensive.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (, he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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