How To Help Home Buyers And Make Everyone Else Happy

The government may offer a solution to home buyers offering them extremely low interest rates to purchase a home. The problem with that is that other home owners who are making payments on an existing mortgage will not be offered the lower interest rate. These existing home owners will be upset that they cannot get these lower interest rates.

This is definitely a problem but I see a way out of this. The government can move ahead with these super low interest rate mortgages that will be issued directly to home buyers but in return the home owner should be obliged to give up a portion of the gains from a house sale. This portion can be based upon the discount to a standard 30 year fixed mortgage. For instance if the Treasury issued a home owner a new 30 year fixed rate mortgage that is 30% cheaper than a typical 30 year mortgage, then the home owner will have to give up 30% of the profits when the home is sold. The terms can be specified when the mortgage is issued.