Trump’s Policies Could Add THOUSANDS Of Dollars To Your Mortgage Payments Each Year

Donald Trump’s proposed policies aren’t just going to jack up the prices on everyday consumer goods – they could also add thousands of dollars per year to your mortgage payments. Trump has proposed a deregulation plan that calls for the privatization of Fannie Mae and Freddie Mac, which came under government control following the financial collapse of 2007-2008. If this plan moves forward, it would allow the lenders to significantly increase their rates, costing consumers thousands. Ring of Fire’s Farron Cousins explains how this could happen.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

So by now I think everybody's got a pretty good handle on the fact that when Donald Trump becomes president and he enacts his horrible policies of mass deportations and tariffs on everybody he can think of the cost of the everyday goods that you purchase are going to go through the roof again, just the mass deportation would cause your prices to go through the roof. But you add that to the tariff plan, we are looking at a massive sudden price increase across the board. In fact, retailers have already been holding their, their quarterly calls, strategizing on how to raise prices. So this is not a pie in the sky. This is not a hypothetical. Maybe it will, maybe it won't. They've already got it planned. It is going to happen. So we know that. Here's what you may not know. You may think that, okay, well the things I've already purchased, obviously I'm not gonna, I'm not gonna have to pay more for what I already own, right?

Oh, if only it were that simple. Because the mass deportations and the tariffs on everybody are not the only plans that Donald Trump has. And in fact, his deregulation platform that Republicans always run on would cause the cost of your mortgage to increase by up to about $3,000 per year. If and only if, of course, you know, you're a, a middle to low income earner, so if you make a lot of money, you don't have to worry. Your mortgage is locked in. But if you're somebody that had to basically get a government subsidized loan through Fannie Mae or Freddie Mac, Trump's plans would cause your mortgage cost to increase by up to $3,000 per year. Here's what's happening. Following the economic crash of 2007 and 2008, which of course coincided with the housing market collapse, Fannie Mae and Freddie Mac were basically put under a government conservatorship.

And because of that, the government is essentially backing these loans from these two financial giants. And they do provide loans mostly to lower to middle income American citizens. And in order to not take on the full risk of these loans, but being backed by the government, they're then able to kind of bundle them and they sell them to investors, which helps to keep the mortgage rates low Trump's privatization plan. And I hope, by the way that I explain that in a way that makes sense. 'cause it is a very complicated issue. And I tried to distill it down to like, you know, one paragraph. So a little tough to do, but that is basically it in a nutshell. So anyway, Trump's privatization plan, or his deregulation plan, I should call it, uh, calls for the privatization of Fannie Mae and Freddie Mac. Something Republicans have been pushing for years. Trump wanted to do it in his first

Term, but he was unsuccessful in doing that. He will attempt to do it again in a second term, and now with Republicans in the House and Senate probably gonna be able to do it. And if he does that and he privatizes these government backed entities, suddenly that frees them up to increase your interest rates. But more importantly, even if they don't do that, what it does is it removes the government backing from these mortgages, meaning those investors who are essentially the ones really backing it, you know, in front of the federal government, suddenly your investment is far riskier. When it's a riskier investment, fewer people are willing to make the investment, which at that point would cause these rates to go up because Fannie Mae and Freddie Mac would need to make sure that they can get their money out of it before these people default.