User:Americantaxpayer/Harvey Plan

The Harvey Plan is a relevant solution proposed by Jesse R Harvey to help eliminate the American housing crisis. It is gaining popularity in the northwest region of the country where it has been a topic on the Lars Larson show.Americantaxpayer (talk) 03:24, 25 October 2008 (UTC)Lars Larson Show 10/23/2008,10/24/2008 The federal government, for a period of 5 years, credits the total interest payments of an American citizen on an American home. This is limited in three ways: Not to exceed 6 percent of mortgage value Credit is limited to 6 percent of $417000 or the current limit of an FHA loan Only First mortgages are applicable. (Seconds, Heloc, and Home Equity do not apply) To receive this credit the taxpayer must paydown the mortgage by the valueof the credit. Example 1: $300000 home at 7 percent interest rate Roughly $21000 of payment are interest This tax payer would get a $18000 credit that would reduce mortgage principle Example 2: $1000000 home at 6 percent interest Roughly $60000 of payment is interest This tax payer would get $25020 credit that would reduce mortgage principle Example 3 $165000 home at 7 percent interest Roughly $11550 of payment is interest This taxpayer would get $9900 credit to reduce mortgage principle This tax credit would be directly deposited in the lending organizations account Americantaxpayer (talk) 03:24, 25 October 2008 (UTC)Lars Larson Show 10/23/2008,10/24/2008 The proposed effect of The Harvey Plan •	After a 5 year period American taxpayer could reduce mortgage debt by 30 percent •	Stimulate the American housing demand by instantly improving home values in every market in America, and create a real demand for housing •	This would inundate the American banking industry with cash and eliminate the toxic nature of this debt on balance sheets •	Allow for a more natural occupancy in rental market so Americans with lower means will not be forced out of their apartments due to a lack of supply and raising rental rates •	As the banking industry gets balance sheet improved they will be able to loan American dollars to stimulate our economy and allow sub prime mortgages to be renegotiated •	The mortgage industry is between 14 and 18 trillion at least 20 percent of mortgages are above 417000 and a certain portion of that value is loaned at higher than 6 percent. The cost to America would be less than 700 billion a year and increase tax revenue as economy starts again Americantaxpayer (talk) 03:24, 25 October 2008 (UTC)Jesse R Harvey, 10/22/2008