Obama’s Housing Plan and the Rule of Law Hardwood Floor Refinishing Minneapolis

We don’t know what is going to happen. This is risk. The uncertain future, the more uncertain, the more risk. Investors, families, businessman are always calculating risk. We are trying to find the odds, figure them out, and make decisions that put the odds in our favor. One way to decrease risk is to have logical laws. Logical laws are rules that people can live by, that make sense and have been used by people for hundreds of years. For example, “do what you agreed to do”, or “don’t infringe on other people or their property.” We can obviously agree with these rules. But the new housing plan proposed by President Obama hinders the rule of law and increases risk for investors. The main part of the plan says financial institutions must refinance mortgages for people who can’t pay their mortgages. Does this make sense? The government is going to force investors to renegotiate contracts between buyers and sellers. Say you’re an investor and you are going to loan money to a buyer to purchase a house. You agree to loan $200,000 for 30 years at 8%. But what if there is a chance that the government is going to say you have to lower the rate just in case the buyer can’t pay the mortgage. This is added risk for you, so logically, since there is more risk, you must be compensated. You then raise the interest rate from 8% to 9% for the additional risk. Now it is more expense for the buyer to purchase the house. Do you see what I am getting at? This bill is going to make housing more expensive. It is going to increase risk for investors and lenders. And in the end, make it less likely that financial institutions will lend money at good rates because there is an additional risk, and an uncertain future that the government is going to demand a change to the contract. Strong businesses and economies need more certainty to grow, be productive and create wealth, not less. If you’re looking for a hardwood floor refinishing estimate in Minneapolis give me a call. I will try my best to make it a low risk deal for you.