News for hackers. Stuff that matters.
Re:Rocket Mortgage to trim 8% of workforce as home-loan mark... by refurb on Thursday April 28, 2022 @04:11AM (#31189951)
The 30-year fixed mortgage (the entire amortization period is at one fixed interest rate) is a government created product. It would never be offered by banks, at the low rates they are, if they had to hold them on their books. The "normal" mortgages in the US prior to the FHA were 50% down and 5-year terms.

https://bebusinessed.com/history/history-of-mortgages/

Fannie and Freddie basically agree to "back" those new mortgages (typically buying them from banks and selling them off later) as long as they conform to certain requirements - 15 or 30 year terms, 10-20% down payments, etc.

It's a massive subsidy for the housing market in the US, but also addresses the social goal of making housing accessible. You can get a mortgage and the monthly payment (interest + principle) never changes over the 30 year life of the loan.

Re:Rocket Mortgage to trim 8% of workforce as home-loan mark... by oliwarner on Thursday April 28, 2022 @11:02AM (#31193313)
> at the low rates they are

Low rates?! BOA is offering me 4.9% on 400k/800k, fixed for 30yr. But they still want 4% for a 5year ARM. Even after income tax deductions, how the hell do Americans afford houses with this sort of nonsense.

I guess that's what TFA is really driving at. It's getting hard to lend money on housing in the US.

Re:Rocket Mortgage to trim 8% of workforce as home-loan mark... by bluedino on Thursday April 28, 2022 @09:10AM (#31192023)
Back then you could order a house from the Sears catalog for $1,495