You may want to read this article. I was unaware of 35Y mortgage but now you understand where the banks are coming from!
There appears to be so many ways to skin the cat (housing financial engineering) the mind boggles.
The AUDUSD is shiete for a valid reason. How many more times the banking community in cahoot with the MSM needs to remind us that housing can only go UP?
If interest rate go up finally which I assume will be many years down the track from the way the economy is behaving currently, how are the mortgagee going to pay additional premium when they are already struggling at such low rates?
The financial engineers will think of something and if they can't the CB/Economists will find another economic model suitable.
We are stuck in this crap hole so nothing we can do about it. Just Pray we don;t get the Northern Rock style bank run infecting other banks.
