log 10 - steady Not to many people seem to be unhappy with...

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The Bush Administration is planning to temporarily freeze interest rates on certain subprime home loans, which is also being negotiated between mortgage-related companies such as Citigroup Inc., Wells Fargo & Co, Washington Mutual Inc., and Countrywide Financial Corp. They have agreed to extend the introductory rate on home loans for certain borrowers who have trouble making payments once their mortgages increase. The reason for all of this change is because of the action the Bush Administration wants to take in response to the recent housing turmoil. In a typical case, the rate would rise to 9.5% to 11% from 7% or 8%. That would put the average borrower’s payment above their previous payment by several hundred dollars a month. The Bush Administration is acting with good conduct by taking action on an event that needed to be handled for awhile now. Even though this could be costly for a lot of people, especially for people who couldn’t pay their mortgages even if the rates stayed
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Unformatted text preview: steady. Not to many people seem to be unhappy with this decision however, mainly because most borrowers don’t deserve to be rescued by their lenders for their own bad decisions. I think that this is going to make a big change in the short run since many more people have to pay more money on their subprime home loans. While this change isn’t going to last for the entire future, it is good for borrower’s to fight through the change that is happening now in hopes of the rate getting back down to what it used to be in the next 7 years. Although most borrowers whose loans are resetting are likely to have a tougher time with the rising payments, I think that most people will be able to efficiently deal with it if they really work for it. Solomon, Deborah and Phillips, Michael M. (2007 November 30) U.S., Banks Near A Plan to Freeze Subprime Rates. Wall Street Journal. Pp A1, A12...
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