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Wow, this really can’t be good, can it? American Express is set to offer its card holders the ability to make their mortgage payments with the AMEX cards. I echo Housing Wire’s sentiments about the whole thing:
Anyone concerned about the fact that nearly anyone with a heartbeat can get a credit card?
I’m not sure this program will benefit anyone, frankly. Consumers unable to afford their mortgage on a cash basis can pay that debt â?? say it’s at 6 percent â?? by assuming additional debt, say at a more variable 12 percent. I don’t see consumers that can pay cash for their mortgage choosing to trade up to a higher interest rate, can you?
You can read more about the bad? idea here and here. I don’t get why anyone who can manage their cash and credit well enough to qualify for this program (it’s available only to prime clientele) would choose to tack interest on to interest.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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