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If The Subprime Had Had Fixed Mortgages Over 25yrs+ Would We Be In This Mess

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If those who had subprime mortgages had got fixed deals over 25yr - 30 yrs at the rates they had the teaser for would we have had the wave of defaults?

I know that this causes a few issues none more so than actually fixing the interest rate for these people at that point but for the sake of argument suppose it was possible, would the defaults have happened in the numbers that they did?

Would fewer have defaulted stopping the crisis?

If it did where else in the system would the implosion have occurred?

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If those who had subprime mortgages had got fixed deals over 25yr - 30 yrs at the rates they had the teaser for would we have had the wave of defaults?

I know that this causes a few issues none more so than actually fixing the interest rate for these people at that point but for the sake of argument suppose it was possible, would the defaults have happened in the numbers that they did?

Would fewer have defaulted stopping the crisis?

If it did where else in the system would the implosion have occurred?

some people are sub prime for a reason.

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Yeah sure you can fix the rate but not at 0.5% plus admin fees, or 2%, or 3% but 5% and more !

now thats what i call a fix and instead of listening to a figure put out by brown it's better to monitor the real cost of borrowing at a fixed rate.

tiss strange that rates can be going up when they are coming down is it not.

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If for instance people had been able to get fixed rates of say 3.5% fixed for 25 years what affect would this have had on the sub prime market? I'm guessing that less people would have been able to take them out, and those that did would have been more able to keep up repayments.

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If for instance people had been able to get fixed rates of say 3.5% fixed for 25 years what affect would this have had on the sub prime market? I'm guessing that less people would have been able to take them out, and those that did would have been more able to keep up repayments.
I suspect sales of boob jobs, chavtats, clown pendant bracelets and bright orange Peugeots and Fords would have been much reduced too.

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If those who had subprime mortgages had got fixed deals over 25yr - 30 yrs at the rates they had the teaser for would we have had the wave of defaults?

I know that this causes a few issues none more so than actually fixing the interest rate for these people at that point but for the sake of argument suppose it was possible, would the defaults have happened in the numbers that they did?

Would fewer have defaulted stopping the crisis?

If it did where else in the system would the implosion have occurred?

it might have eliminated some of the borrowers who would have REALISED what the real cost of the loan was however I still think some would have proceded anyway, lying about their incomes and hoping it would be ok.

If you rephrase:

- if subprime had fixed rate mortgages for 25 years AND

- income was carefully checked such that people only allowed to borrow 3x salary AND

- deposits were checked to ensure that they had the requisite deposit (not as piggyback loan or other borrowing) AND

- they were forced to buy insurance protection against impact of future unemployment

Then it would have been ok.

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it might have eliminated some of the borrowers who would have REALISED what the real cost of the loan was however I still think some would have proceded anyway, lying about their incomes and hoping it would be ok.

If you rephrase:

- if subprime had fixed rate mortgages for 25 years AND

- income was carefully checked such that people only allowed to borrow 3x salary AND

- deposits were checked to ensure that they had the requisite deposit (not as piggyback loan or other borrowing) AND

- they were forced to buy insurance protection against impact of future unemployment

Then it would have been ok.

specially the retired ones on 25 year Option ARMs, the unemployed, the sick and the criminals.

would have put them all off.

pity it was the bankers who didnt care....here in the UK we had...125%, buy with a friend or two, BTL, IO, IO for 40 years, IO with no repayment vehicle, no proof of income, fake income, Lie about income....all signs of a truly prudent and trustworthy banking fraternity.

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specially the retired ones on 25 year Option ARMs, the unemployed, the sick and the criminals.

would have put them all off.

pity it was the bankers who didnt care....here in the UK we had...125%, buy with a friend or two, BTL, IO, IO for 40 years, IO with no repayment vehicle, no proof of income, fake income, Lie about income....all signs of a truly prudent and trustworthy banking fraternity.

Wow good job we didn't do subprime then, you nearly had me worried.

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