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A careful scrutiny of your loan document could reveal a legal loophole that allows the home loan company to 'unfix' and raise the rate under exceptional circumstances. It's called the 'force majeure' clause.
Force majeure -- French for great force -- is a standard clause in many commercial contracts. Typically, it covers natural disasters or other "Acts of God", war, or the failure of third parties -- such as suppliers and sub-contractors -- to perform their obligations to a contracting party.
And if you do find one, it's time to reassess your home loan options because other banks/ housing finance firms may not have that rate hook. Specifically, look at the examples cited whereby the clause can be invoked -- if it talks about the above examples, fine, there is no issue. But if the clause contains subjective examples such as money market volatility, drop the offeror.
Originally posted by ldunquist
By the way, I know I'm not going to convince anybody, because the federal reserve gold conspiracy is too sexy not to believe in. I'm just pointing out the way money, debt, investing and interest work in a modern capitalist society.
You don't have to believe me, you can put the principles to work for yourself. Go ahead and invest money in the stock market, or even a high yield savings account. You will observe money being created for YOU. Just remember, that money isn't coming out of thin air though, its coming from the future.
Are the Banks robber baron's, Yes they are - but what option do we have? Don't forget they're taking a risk and they don't always make money as we now know.
Originally posted by sc2099
Quite right. This is why financing ANYTHING is stupid. By the time you "own" your home, you've paid the bank twice what it's worth. A home is one thing, but hopefully no one who reads this forum would finance a car.