Wednesday, July 18, 2012
Mortgage Interest Rates
The quote may not fit with my comments but imagine for a minute that I am talking about big banks and mortgage interest rates. We are being judged by big banks, especially if we are not rich.
Yesterday's paper carried a story about billionaire Mark Zucerberg.
Zuckerberg recently refinanced a $5.95 million dollar mortgage on his Palo Alto home with a 30 year adjustable-rate loan starting at 1.05 percent. Really?! Is that not kind of like borrowing for free? And, this is a man who can afford to pay the going-rate don't forget. At 28 years of age and the 40th wealthiest person with a net worth of $15.7 billion, yes that is billion with a B, Zuckergerg negotiates a loan rate of 1.05 percent.
Many individuals in the US where all this went down are forced to leave their homes and part of the reason seems to be that their banks won't lower their borrowing rate to make payments affordable.
Where is the fairness in this? I suspect similar stories could be told in Canada too.
I wonder if there are enough of us who would be willing to take up this cause? Fight for the little guy? Take on the big financial institutions? What do you think?