The FatCat is opposing the increasing federal minimum wage to $7/hr. This is outrages. The acceptable minimum wage according to FatCat is $12-$15/hr. Which translates into the yearly income of $20-$30k. This will allow the people on the minimum wage afford to buy a house from FatCat or rent it after she foreclose on them. $7/hr! Can someone tell me how much are you willing to loan to someone making 14k/yr to buy a house?
Assume impossiblly low interest rate of 8% apr and 30 year fixed:
- Minimum wage $7/hr---> Maximum mortgage $50k
- Minimum wage $12/hr---> Maximum mortgage $90k
- Minimum wage $15/hr---> Maximum mortgage $120k
You should realize the minimum wagers are more likely have 10% APR than 8%. Besides, the above calculation does not include the cost of PMI, tax, insurance and allowed 1/3 of income goes to mortgage payment.
FatCat does not apologize that she wants to make more money by selling houses to the minimum wage earner then foreclose on them. She also hates the fact all fees and lawyer costs are fixed regardless the value of the house. Therefore, it is simply more efficient to foreclose on a 120k house than 50k house.
FatCat says: raise the minimum wage to at least $12/hr or we will fire Nancy the pussy!
