<br>
><br>
> Don't banks factor credit ratings into the mortgage costs? They certainly<br>
> do for Home Equity Loans [helocs]<br><br><div class="gmail_quote">On Tue, May 20, 2008 at 11:27 AM, Eli Turkel <<a href="mailto:eliturkel@gmail.com">eliturkel@gmail.com</a>> wrote:<br><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
relative to the amount you want.<br>
Of course a rich person has a better chance of getting<br>
a multi-million dollar loan (at least until the subprime crisis) that<br>
a poor person has of getting a few thousand dollars. However,<br>
that is more "connections" then economics.<br>
<br></blockquote><div class="Ih2E3d"> <br><br></div><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;"><font color="#888888">Eli Turkel<br>
</font></blockquote></div><br>RRW: Crdit Ratings have to do with rates of interest also NOT just the probablity of acqiuring a lona<br clear="all"><br><blockquote>
But it's not a profit-making venture, so from where is the "investor" to be paid his capital and dividend? <br><font color="#888888">
Zev Sero</font><br></blockquote>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.<br>
<br>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. <br><br>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!<br>
<br>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. <br><br>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 <br>
<br>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<br>
<br> <br>Kol Tuv / Best Regards,<br>RabbiRichWolpoe@Gmail.com<br>see: <a href="http://nishmablog.blogspot.com/">http://nishmablog.blogspot.com/</a>