Housing Bubble 2.0 Meet The Negative Interest Rate Mortgage | Jabar Post Indonesia

Housing Bubble 2.0 Meet The Negative Interest Rate Mortgage | Jabar Post Indonesia/a> – This time JabarPost.Net will discuss about Mortgage.

The following is Housing Bubble 2.0 Meet The Negative Interest Rate Mortgage. And for those of you who want to find a similar explanation, you can search in the Mortgage category

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Housing Bubble 2.0 Meet The Negative Interest Rate Mortgage | Jabar Post Indonesia

A mortgage loan or, simply, mortgage (/ˈmɔːrɡɪdʒ/) is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property (“foreclosure” or “repossession”) to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning “death pledge” and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.[1] A mortgage can also be described as “a borrower giving consideration in the form of a collateral for a benefit (loan)”.

Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property (for example, their own business premises, residential property let to tenants, or an investment portfolio). The lender will typically be a financial institution, such as a bank, credit union or building society, depending on the country concerned, and the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. The lender’s rights over the secured property take priority over the borrower’s other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first.

In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector (that is, through short-term deposits) or through the capital markets through a process called “securitization”, which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.

Housing bubble 2.0 has reached peak insanity. The world’s first negative interest rate mortgage has arrived. From the 3rd largest bank in Denmark we now see banks are willing to pay customer to take out a mortgage. Jyske is pushing the housing bubble to a whole other level. We also see Wells Fargo is back with more job cuts I’m not sure what’s going on with financials but it’s not good.

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  1. comment from another person same vid:
    I study financials and I am from Denmark

    Danish economy is very stabile and when we value the kredit of a customer we have a very strict law.

    The mortgages you are referring to (F1 to f5) have been like this for some time. Aside from the f5.

    You are taking it out of context. The customer lending money pay a minimum of 0,75% on top of the interest rate to the mortgage institute.

    The reason why the interest is so low is because the danish obligations/mortgage are historical secure and there is no defaults. The legislation is so tight. You can look it up. This is not comparable to other mortgages…

    It will create a problem however. Cause people experience its cheaper to lend – making it easier to buy – driving the prices up.

    Legislation has been set in place and it's now settling

  2. I think Banks eliminating jobs is correlated to the amount of people who are delinquent or defaulted. It’s not hard to manage accounts or people who aren’t there anymore. Like a graveyard.

    I mean you only need 1-2 person to watch over a graveyard of delinquents.

  3. Go ahead and borrow money at negative interest, but remember, once they have enough people trapped interest will start going up the positive way and then your fucked.
    And you may choose to fix your loan on negative but i guarantee you the bank will only have a short lock in term or (honey moon period)
    And then you may go back to a positive scenario, dont forget ongoing fees that a bank could instate making it the worsed nightmare.
    Stay away if your smart because you don't know the agenda behind this stupidity.
    30 years ago interest rates were double figures on the positive.
    The banks never looses.

  4. Yea, but if home prices drop 35%, like they did during great depression and recession, they will still be upside down. If staleflation, like Japan, those prices will not rise again for decades. Doesn't sound like a good deal.

  5. The bank in Denmark is not giving away anything and in fact no bank is as many claim on the net. Take Denmark and the bank underwriting mortgages for -.5%. Banks there charge huge fees at the time of closing and are much, much higher than in the US. The amount the bank "supposedly" would give to borrowers is actually buried in the costs at the time of closing and in fact the bank ends up making money at closing. Then they will package this up into pools and sale the bonds as they have been doing for some time now. Armstrong Economics that has computer models that track domestic and international capital flows over 6 weeks ago alerted clients that capital in Europe was moving from anything government like sovereign debt which many investors still held from years ago and moving into private assets. The reason is if the sovereign debt defaults which is coming to Europe starting in 2020 investors get nothing. The firm has been advising clients and non-clients since about 10 years ago when they first alerted clients that Europe was beginning to collapse and you need to get out of any government debt in Europe from the countries in the EU with German the strongest but they have had bond auctions failures recently. Capital has been flowing from southern Europe to Germany parking in bunds as they felt they were much safer than other sovereign debt in the EU and when the euro finally collapses the euro based bunds will be converted into the new mark based bunds but this has stalled hence the falling bond auctions from investors forcing the ECB, central banks in the EU to print and buy as they have been doing with other countries there along with banks who must hold these as part of their official reserves and pensions who are all going broke as they have been bidding up prices forcing yields into negative territory just like they and banks have been doing with sovereign debt hence all the negative yields after acquisition costs. A good example is Austria sold 1 billion euros of sovereign debt at 1.2% for 100 years and after pensions and banks bought up this crap yields ended up being negative. Almost all this debt that is being issued is actually not negative but has a positive yield although small but after entities bid up prices this pushes yields into negative territory. Germany issued over 3 billion euros at 0% for 10 year paper and after bids yields went into negative territory.
    Now back to the mortgages. Last month banks in Norway sold a pool of mortgage bonds and the coupon rate was around 3% but after bidding up prices yields went to negative territory hence again your negative rates. What this is showing is that capital is fleeing where it thinks it is safe which is private assets or dollar, US equities and recently treasuries also bids pushing up prices collapsing yields. Almost all of this has been coming from Europe. Now Armstrong Economics held their worldwide conference in Rome about 3 months ago with Nigel Farage as the quest speaker. The firms base is large institutional investors around the planet and is the largest financial consulting firm on the planet and they have a huge client base but of course not everybody as this would be impossible. The conferences usually gets some central bankers and pension fund managers plus clients but this time it was packed with the above. The firm again warned of the chaos which starts in 2020 especially in Europe as the world enters a recession and this pushes Europe, Japan, Australia, emerging markets etc. over the cliff. The crisis especially in Europe is a total loss of confidence in government with a sovereign debt crisis which creates a currency crisis and on top of this is the pension crisis. This is why we are seeing capital move into private assets bidding up prices collapsing yields in Europe as we saw with the mortgages as these lenders now know that big institutional investors are simply parking capital. They are no longer looking for a return ON capital but a return OF capital and in Europe those that have not been moving to dollars, US equities and treasuries are parking in private assets.
    This is why all those who have been predicting a total collapse of dollars, US equities and the economy have been totally wrong as capital is simply parking here looking for a safe haven. Fundamentals or technicals mean nothing when capital is looking for CAPITAL APPRECIATION as the cycle as turned as forecast by the models from corporate profits to capital preservation. The models had forecast that the S&P P/E Ratio had peaked in 2009 but international capital would still flee to dollars and US equities and that has been exactly what has been happening since then. The forecast back in 2009 were 21,000, 23,000 and 26,000 with two more remaining when the collapse really takes off outside the US as even more capital flees to the US and moves the dollar higher, US equities higher and still bid up treasuries collapsing yields as it seeks a safe haven. Armstrong had said recently that institutional firms that have not moved capital out have realized that Europe is in serious trouble hence the yields on treasuries collapsing and again they have been for the last two days.
    Again the bank in Denmark underwrites mortgages with negative rates, charges huge fees where they make a profit at closing and then pool these and sell to private and institutional investors as they are willing to take a hit on principal to obtain investments that actually have collateral and if they default at least they will receive something back. All this just shows how desperate things have become in Europe and how the ECB and Brussels have totally destroyed the bond markets, banks, pensions, savors, businesses and whole economies which still have extremely high unemployment especially youth. As Armstrong as said the ECB could actually go bankrupt and it will be a miracle if the euro survives past 2021! This has created a domino effect and this is why much of the planet is in serious trouble with the US one of the few that has been not only standing but the economy holding up much of the planet no matter what you read on the alt media as they all have been constantly wrong and there is no reason why it will not continue as these people do not understand the change in the cycle from corporate profits to capital preservation. Clients of the firm were able to not only keep capital but make profits as most bought the Dow at around 7500.
    The recent market moves are your typical knee jerk reactions to certain events. One was the FED as wall street was not happy with the small rate cut and the others were caused by Trump's tweets about China. If this persists the normal market correction that we are supposed to have this fall many come earlier especially if the US backed riots in Hing Kong continues as China is running out of patience as the rioters are destroying property and causing economic harm. I surprised China has not responded earlier as no country would put up with the destruction and economic harm as they have.

  6. There are many big banks that owned homes on the books when they unload look out , try to understand how diamonds our regulated it’s almost the same but with real estate .

  7. A negative mortgage doesn't make any sense.
    In fact if the mortgage interest is negative it would make sense, as soon as getting the loan, not to make any of the repayments and go into arrrears because the outstanding loan would get smaller with negative interest rates.

    Why would any bank lend money at negative interest rates.
    Would you lend $10,000 over 10 years and expect to only receive $9,000 back and have the hassle of administrating the monthly transactions when you could just leave it in your safe deposit box?

  8. Yes but you still need to pay all manner of rates and taxes to the govt that you wouldn’t have to pay if you didn’t take out that mortgage so negative interest rates aren’t that big of a deal compared to say, a collapse in the housing market.

  9. James Chapter 5
    1 Go to now, [ye] rich men, weep and howl for your miseries that shall come upon [you].
    2 Your riches are corrupted, and your garments are motheaten.
    3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
    4 Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabaoth.

  10. This video is a little misleading. The US does not have negative interest rates. However, the fiat currencies around the world are being tested. One suggestion, rather than just marketing fear on your video, also offer a solution for individuals. The prepared get more wealthy during recessions, recessions are wealth transfers. So have a good credit score, have your debt paid off, have money in the bank, and then buy properties in mass when the opportunity comes.

  11. Banks do not give money free people. They are lowering prices of houses without Lowering it. Just another trick. They are trying to save a crash and total loss. If it crashes the real price would be 100k instead of 995000 that you are expected to pay. Still a screen up till they can no longer do that. It is postponing the inevitable burst.

  12. This would solve the homeless problem, the crime rate and the ability for an average person to jusr afford to live🤗. Yesss live and let live! Stop taking from the poor…poor people make the world go round 😂😜!

  13. Hardcore Absolute Fact: Stock Markets are 100% fake! Housing market is 100% fake and unaffordable! Federal Reserve banking cartel mafia felony system has been exposed over and over again for fraud, extortion and bribery!

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