ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Obama’s Executive Order: Refinance Mortgages

Updated on October 24, 2011

Campaign Talk with No Substance – The Obama Rhetoric and more Foreclosures

Great the Financial Genius Obama is on the campaign trail spewing his useless rhetoric. Seems like he was too busy destroying the country to take notice of the Housing Sector until its campaign time. If you think I don’t like Obama… well you would be right, but don’t like is a relatively weak term… I hate the douche! He’s lying manipulative scum. If that offends you then this article is certainly not for you. If it doesn’t offend you then maybe you are a person that understands the massive DAMAGE the Obama Administration Policy has done to our country. And I don’t need to hear any whining about how ineffective Congress is. During the Obama Administration the Senate and his own inept self have had control.

Let’s get to the reasons Why the Refinance Mortgage Executive Order will FAIL

First off – the program only applies to loans backed by Fannie Mae and Freddie Mac (The Federal Government). That leaves out according to CBS News about 7 Million of the 8 Million Homeowners who are underwater on their mortgages.

But what does it mean to be underwater? It means the value of the property is less than the outstanding balance of the loan. In Nevada it’s not uncommon for a crappy 2 bedroom house to have sold for $300,000 in 2004 to now be “worth” $125,000. That’s $175,000 “underwater”. And this is not the exception in Nevada it’s the rule. Homeowners this far underwater are every where. The bigger question is Why did these people agree to pay such high prices?

If they couldn’t afford the loan in the first place why will they suddenly be able to afford the loan after a refinance? Are you going to keep throwing good money at a bad investment? Answer: Only if you are an idiot. So only idiots will try and refinance, because it doesn’t make sense. When people STOP looking at homes as investments and START looking at homes as monthly expenses for housing then the market will stabilize.

It makes no sense to have a high value on a home that you do not plan to sell! That only raises your property tax. So when the Federal Government talks about housing recovery they talk about artificially inflating the price of housing AGAIN! Who does this benefit? Well it benefits BANKS and well BANKS, and then there are the BANKS that benefit. The profit all goes to the bank.

On a simple 30 flat rate mortgage at 6% Interest on a $100,000 home the cost to finance the home over that period of time is $253,000 including an assumed Property Tax rate of $1.25%. The actual interest paid on the property is MORE than the Principal. Who gets all that money? That’s right your friend the Criminal Banking Cartel!

So tell me again why it’s so essential that housing prices go skyrocketing back up to ridiculous unsustainable prices? Oh right, so the banks can get more money out of you and so the Government can get more taxes out of you!

Secondly – Refinancing is NOT free. If a person is in such financial straights that they can not pay their mortgage where are they going to come up with the MONEY UP FRONT to cover the cost of refinancing?

Here are costs you may be required to pay:

* Loan Discount Points.

* Loan Origination. Expect to pay 1 - 1.5 percent of the loan principal.

* Processing.

* Administration.

* Application. $75-$300

* Inspection. $175-$300

* Document Preparation.

* Appraisal. $150-$400

* Credit Report.

* Title Policy. $250 up to $900

* Escrow Fee.

* Reconveyance.

* Beneficiary Demand.

* Notary.

* Loan Tie-in.

* Delivery and Courier.

* E-Mail Doc.

* Tax Service.

* Recording.

* Attorney/closing fee $750

Okay I got tired of looking these all up. The point is it can cost several thousand dollars to refinance and if a person can not afford the payments how will they afford the refinance? Borrow more money? And just because the president tells the Banks holding Government paper to refinance doesn’t mean they will offer you enough of a rate discount to offset the cost of the refinance itself.

Yes there will be some people that will benefit in some instances, and those people will surly appreciate the “windfall” as a result of executive order. But this is much more like the Cash for Clunkers program which essentially did nothing for the economy at large.

Obama is a clueless useless douche and the sooner he is gone the better.

Ron Paul is the ONLY candidate that understands the ROOT CAUSE of the economic problems are the banks themselves NOT the people.

If you are an idiot keep supporting Obama, and after 4 more years there will be no hope of change ever. If you want to see the country return to prosperity then vote for Paul. The choice really is that simple.

Comments

Submit a Comment

  • mortgage-news profile image

    mortgage-news 

    6 years ago from Los Angeles, CA

    It really is such a tease right now. Mortgage rates are at record lows but with fallling home prices, most of us do not have good enough LTV's to get those rates. So even homeowners whoare making payments on time are stil getting screwed by this economy.

  • MikeNV profile imageAUTHOR

    MikeNV 

    7 years ago from Henderson, NV

    I read another article on this subject Mortgage Refinance under the executive order and there are instances where this will allow banks to eliminte their risk on the paper.

    The mortgage becomes "new" in effect shifting the burden of the loan on the Federal Government (Tax Payer).

    These shifts always favor the Banks. Because the Banks are not going to walk away from even a penny of profit unless there is a payoff for them on the back end.

    And everything Obama is doing by executive order is a request not the law, and as we all know money rules, so everything he is doing will be completely ineffectual and potentially damaging to the taxpayer.

    Would be nice if someone would start helping the people in need. And what people do not need is to extend the total cost of their loans for some temporary relief up front because it simply will not help them. They need to walk away now... let the market work itself out. After all this is what Businesses do all the time. Individuals should follow there example.

    If the Government keeps interfering it will only make things worse and raise the National Debt.

    Most of my hubs do have comment areas, the only time I may intentionally turn them off is when I'm writing about a product where comments may dillute the keyword density of the article and effect ranking. Otherwise it's probably just an oversight? I may have intentionally turned them off in some instances due to trolls.

  • habee profile image

    Holle Abee 

    7 years ago from Georgia

    I've been wondering about this after hearing it on the news. Thanks for supplying more details!

    BTW, how come all of your hubs don't have a place to leave comments?? I voted them up, but was unable to comment.

  • MikeNV profile imageAUTHOR

    MikeNV 

    7 years ago from Henderson, NV

    It's truly pathetic. Where has he been all this time prior to the campaign? How did his previous plans work out?

    And even more pathetic was his pandering to Veterens today. His plan is to BEG Community Hospitals to hire just one vet. Brilliant. But not as brilliant as the Headlines and Spin he is getting out of MSNBC.

    The guy is a lower form of life... with no humanity.

  • breakfastpop profile image

    breakfastpop 

    7 years ago

    This is all politics and nothing more. The plan is a disaster but Obama hopes it sounds good to people who just might vote for him and haven't a clue about how things really work. Up and useful and awesome.

  • SheriSapp profile image

    SheriSapp 

    7 years ago from West Virginia

    Your title and opening lines caught my eye, and I decided to take a closer look at the hub. WOW!!! You and I could have a beautiful friendship as we seem to think likewise about our so-called "leader", you know, Mr. Destructo aka B Obumma!! Your hub makes sense, but like you said, there are obviously a LOT of senseless folks living in America currently!

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)