Why are the RICH privileged to low mortgage rates while the POOR have to suffer with high rates?

There are three types of home mortgages:

1. A first-time homebuyer mortgage
2. A primary residence mortgage
3. An investor mortgage

The current system design would seem quite simple: We want first-time homebuyers to be able to afford their own home, so they have the greatest advantage of all, with the lowest rates. Someone who has another home but is purchasing a primary residence gets a higher rate, but still not the highest. Someone who is buying a home strictly for business investment purposes gets the highest rate of all.

However, once upon a time, if someone had enough money to afford a down payment on a house, their monthly mortgage payments were either equal to or lower than what they would be paying in rent. This made buying a house a great option, as you could put the money you would otherwise be paying toward rent toward building your own equity.

Today, however, due to the high prices of homes and high interest rates, there is a new category of people: people who can afford a down payment but cannot afford the monthly mortgage payments. However, they can afford to rent out the home and use that rental income to pay their monthly mortgage while remaining in the apartment or home they are currently renting, often for half the cost.

This gives these families the financial stability of owning a home, allows them to buy before prices go up, and gives them the hope of eventually being able to afford the mortgage so they can move into their home.

However, this category of first-time homebuyers, who cannot yet afford to move into their new home, falls into the current category of “investors,” who are subject to the highest mortgage rates. Meanwhile, only first-time homebuyers who can afford to immediately move into and pay the mortgage on their home are eligible for the lowest rates.

Legislation must be passed to differentiate between an investor purchasing a property strictly for business purposes and a first-time homebuyer who can only afford their first home by renting it out temporarily.

Please help your fellow families, friends, and children by reaching out to your local congressmen and government officials to address this issue immediately.