[Avodah] haaramah

[Richard Wolpoe]

>
> Don't banks factor credit ratings into the mortgage costs?  They certainly
> do for Home Equity Loans [helocs]

On Tue, May 20, 2008 at 11:27 AM, Eli Turkel <eliturkel at gmail.com> wrote:

> relative to the amount you want.
> Of course a rich person has a better chance of getting
> a multi-million dollar loan (at least until the subprime crisis) that
> a poor person has of getting a few thousand dollars. However,
> that is more "connections" then economics.
>
>

Eli Turkel
>

RRW: Crdit Ratings have to do with rates of interest also NOT just the
probablity of acqiuring a lona

But it's not a profit-making venture, so from where is the "investor" to be
paid his capital and dividend?
Zev Sero

Real este is the largest industry in th US. I fail to see how it is NOT a
busineswith a profit. Simple homeowners invest in real-estate all the tie,
jsut as they do in their 401(k)'s etc.

If a family cannnot afford a hourse they rent. Mortgages are almost ALWAYS a
factor of investment. I frankly don't know anyone who thinks otherwise.

One of my students is a rabbi and he is moving to another state whth a
3-year contract, H e INSISTS on buying his own home EVEN THOUGH THE SHUL
OWNS A HOUSE!

I warned him that in 3 years he could lose his shirt becuase of the
high-leveraged nature of mortgages, but he told me his family are
real-estate mavens and they know the risks plus the market is low.

When I took my shtelle in Wash.IHeights we bought a co-op and promptly lost
a fortune as real-estate makets dipped.  It took about 10-11 years to break
even and at no time did we consider that the co-op was NOT an investment
because we could have rented at the outset

So I fail to see how a mortgage or Home equity lone is NOT an investment
loan. It's like buying stock on margin. except the SEC requires 50% for
stocks and most mortgages only require 20% down which is much more highly
leveraged


Kol Tuv / Best Regards,
RabbiRichWolpoe at Gmail.com
see: http://nishmablog.blogspot.com/
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