We need a new standard for calculating home loans — here’s why

An explanation of the complex interest system

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Is it possible that the old standard of calculating home loans is killing the real estate market and our economy in general? Maybe it is time to think about a new way of calculating home loan payments. The federal government first introduced amortized loans during the Great Depression because people were losing their homes. They weren't able to make the balloon payment that were common at the time. Although we would like to think the Fed created amortized loans to get more money out of us, in actuality it was trying to help people keep their homes. This era was a time when the wealthy predominately owned homes, and about 60 percent of the population rented their residences. Things were tough, and even the wealthy struggled to pay their mortgages. Visit this website for a complete reference of the 1932 and 1934 Act. Mortgage loans are a good thing. They provide us the opportunity to purchase and occupy a home before we have all the funds to do so. This opportunity does ...