Bad Governance
The House finally passed the lousy two-month extension of payroll tax breaks. The CBO scored the Bill that is now law. The costs for 59 days (and annualized if extended for all of 2012):
Social Security....................$19.8B........Annualized $119.B
Extended Unemployment.....$8.4B........Annualized $50.4B
Medicare...............................$3.4B........Annualized $20.4B
Totals........(two months).....$31.2B........Annualized $181.8B
The total cost of $31B is paid for with an increase in mortgage fees to be charged by Fannie and Freddie. Given that these two are providing 90% of new mortgages, most folks who buy a home or refi an old mortgage will get hit with these fees. CBO estimates when these fees will come into the Treasury.
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We just bought a house, using the USDA loan guarantee-- and got blind-sided with a $2200 fee at closing.
ReplyDeleteIt's nothing more than mortgage insurance paid upfront.
ASK ABOUT FEES and do the math before you decide on financing.
Well remember the old verse in the bible;
ReplyDelete'the debtor is the servant unto the lender'
My advice - if you can't pay for it - under no circumstances - do not borrow for it.
9:22 Easier said then done.
ReplyDelete