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Each year we celebrate many holidays in the country, from the Fourth of July to Christmas, and we also celebrate regional holidays as such as Sweetest Day and Juneteenth. So, I ask you, Mr. President, why not create a new holiday?: The Mortgage Holiday.
Now many of you may be asking: What you are talking about Warren Ballentine? Well, I am talking about a one year Mortgage Holiday where homeowners will not be required to pay their mortgage for one year! Do have your attention yet?
Here is how it would work:
1. It would be optional. You only do it if you choose to.
2. You cannot be more than three months behind on your mortgage.
3. The interest on your loan will continue to accrue during the “holiday” year.
If a homeowner is paying a mortgage of $1,500 a month on a 30-year fixed at 7%, about $1,275 of that is going towards interest in the first half of that loan. Which means $225 is going against the principle—$225!!! The mortgage holiday puts an extra $18,000 in that homeowners pocket for that year—$18,000!
With the housing market and the economy in disarray this makes perfect sense. The banks will not lose a dime; in fact they will make more money over the course of the loan with the extra year of interest. Homeowners will be able to catch up on their bills and become credit worthy again, thanks to the extra monthly income they have. The economy will rebound more quickly with the extra cash and credit in the market.
So again I ask you, Mr. President: How about a holiday?
Warren Ballentine is a motivatonal speaker attorney, political activist, and host of The Warren Ballentine Show on radio.