3. We should not be helping people stay in their homes if their mortgage payments are at 43 percent of their income. (The bill requires banks, in such cases, to lower interest rates until monthly payments are at 38 percent of income. The government then steps in to lower payments to 31 percent of income.) I don’t feel moral outrage (although it is morally outrageous), I just don’t think it is a good use of money. I also wonder how it works when your income is quite variable year to year. Are they sure there is no way to game this?
via Marginal Revolution: What to think of Obama’s housing plan.
My income last year was negative. (To the tune of seven figures, actually.) So does that mean that my mortgage payments will be negative? Or zero? Finally, I get my bailout!
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