Where's My Bailout?

For months we've been seeing bailouts for companies and individuals who made bad investments. The financial institutions get $750 billion, AIG gets $85 billion, the automakers get some, and homeowners threatened with foreclosure get their loans modified with lower rates and even lower principal balances.

Through it all the biggest objection has been from people who made sound decisisions. Why should my neighbor who got in over his head get his balance reduced while I still have to pay back what I borrowed? Plus, it's generally the people who aren't in trouble who end up paying the taxes that fund the bailouts. Doesn't seem fair, does it?

To all those who have made sound decisions and paid their bills on time, here's your bailout... Fixed rate mortgages are in the mid to high 4% range. I'll leave it to the advertisers to gush about how rare and wonderful a sub 5% mortgage is, but the point is here is a benefit reserved solely for you, the fiscally responsible.

I thought that we'd see first time homebuyers coming out of the woodwork when rates fell below 5%, but we haven't. It also hasn't helped the people who are in over their heads and need some relief. In fact, only people with good credit and equity are able to take advantage.

I've been shocked at the ratio of refinances to purchases, and I'm not the only one. Everyone from the big wholesale lenders to small local banks to real estate appraisers tell the same story. It's been all refinances and almost exclusively for strong borrowers.

So if you've only borrowed what you could afford, paid your bills on time and resent footing the bill for the mistakes of others, here's your bailout!