Last week, President Obama's Administration unveiled a plan to reform the regulatory system of the financial and banking industries. Part of the plan would create a new agency to oversee mortgage lending, and the President's plan specifically stated that consumers would be best served by "plain vanilla" mortgages -- that is, home mortgage loans that have 30-year fixed rates and are simple and easy to understand. Obviously, this is a reaction to the overly complicated adjustable rate loans that caused much of the current pain and suffering.
You can check out this story from the Associated Press or this story from bankrate.com to learn more about what the President has in mind.
At MassHousing, we've often referred to our loans plain vanilla, and we're glad that others are seeing the beneifts of no-nonsense mortgage loans. With a MassHousing loan, what you see is what you get. A great interest rate, fixed for 30-years. No hidden fees, interest rate changes or unpleasant surprises. We're still offering low-downpayment loans, too. And there is a bonus -- mortgage payment protection insurance that helps you pay your mortgage loan for up to six months if you lose your job. Think of it as the cherry on top of a scoop of plain vanilla.
Plain vanilla loans are back in style, so ask your lender about a MassHousing loan. It's just what you need if you're looking to buy your first home in this uncertain economy.