Fixed Rate Home Equity Loan Application: Fill & Download for Free

It is quite an easy question if not rhetorical, basically i have been opurtuned to deliver speeches across the states addressing college students on the best way to maintain a good credit score and not let student loan and reckless spendings ruin your credit before you graduate, TAKE A LOOKBad credit loans are a relief option for consumers whose low credit scores limit their borrowing options.Put another way: A bad credit loan, which is really just another name for a personal loan,can bail you out of a financial emergency, even if your credit score (something under 650) is a lot lower than you or most banks would like.So if you suddenly need money to buy or repair a car; make payments on a medical bill or consolidate credit card debts, but don’t have a high enough credit score to get a loan from one of the big banks, don’t give up. There is help available.Bad credit loans are treated the same as personal loans. They are money you borrow and pay back in fixed monthly installments. The loan could come from a bank, but if you’re looking for an affordable interest rate and flexible qualifying requirements, the better choices probably would be:Credit unions. A great option. Maximum allowable interest rate is 18%.Family or friends. Easier to qualify and hopefully lower interest rates.Find a co-signer. Use someone else’s high credit score to get a lower interest rate.Tap home equity. Credit score not a factor. If you have equity, you can get a loan.Online or P2P. Huge market of lenders who can be very flexible with terms.You could add more options like payroll advances, loans from retirement accounts or borrowing against life insurance to the list, but those are last-ditch choices best left untouched unless everything else fails. There are better alternatives to consolidate debts from credit card.What Is a Bad Credit Score?Credit scores are an attempt to gauge the likelihood you will repay a loan. They range from 300-850. The higher your number, the more likely you will repay.Bad credit scores start at 650 and go down from there. People in this category are considered a high risk and pay the highest interest rates. They are prime candidates for bad credit loans.The definition of a “good” and “bad” credit score does vary from lender to lender. Some won’t touch anyone with a credit score under 650, some actually market to consumers with a sub-650 score.So it’s hard to say what makes you “good” or “bad” on the credit scoreboard, but the accepted range looks something like this:760-850 – Excellent700-759 – Very good660-699 – Fair620-659 – PoorScores under 620 – Extremely poorHow Bad Credit Scores Affect BorrowingConsumers in the good-to-excellent credit score category receive the lowest interest rates and best loan terms. Consumers in the poor and extremely poor categories are burdened with high rates and may not be approved for a loan at all.Many consumers get that message and that is why the average credit score for U.S. consumers in 2018 is 700, an 11-point jump over the last decade. However, the real numbers worth paying attention to are the combination of score and age, which say a lot about how our economy operates.According to FICO, people ages 60-and-above have an average credit score of 743, while those in the 18-29-year-old bracket average just 652. It’s one of the few places in life where being old pays off.Still, that’s a 91-point difference, which is very costly when you are shopping for home and auto loans as the graphic below demonstrates.How Your Credit Score Effects a 30-year, $200,000 Home LoanScoreInterest RateMonthly PaymentTotal interest paid760-8504.263%$985$154,744700-7594.485%$1,012$164,172660-6994.876%$1,059$181,074620-6595.306%$1,111$200,087619-and lower5.582%$1,146$212,520How Your Credit Score Effects a 6-year, $25,000 Auto LoanScoreInterest RateMonthly PaymentTotal interest paid700-8503.71%$387.83$2,924660-6995.07%$403.44$4,047620-6599.88%$461.63$8,238619-and lower15.29%$532.57$13,345How to Get a Loan with Bad CreditIf this is not an emergency, the first step to get a loan with a bad credit is to improve your credit score so you can comfortably afford the loan you need.Start by making on-time payments, especially on credit cards; and reduce the balance on cards to under 30% of the credit limit allowed. Finally, don’t apply for any new credit.The combination of those three factors – on-time payment; low credit utilization; no new credit applications – account for 75% of your credit score. It’s not unrealistic to think that making an effort on those three fronts could raise your score by 100 points in as little as 3-6 months.If, however, this is an emergency and your application for a loan has been turned down repeatedly due to poor credit or no credit, it might help to ask a bank or credit union loan officer for an in-person interview to convince them you are creditworthy.If you get that interview, be sure you are prepared with documents that prove you’re a good risk. Lending institutions love stability. If you can show them that you’ve lived in the same house (or city) and worked the same job (preferably for the same employer) for several years, it definitely helps your case.Common things to bring that prove your credit worthiness include:Details of your job history, including salary and pay stubsList of assets such as home, car, property and where you stand on paying them offWhether you pay or receive alimony or child supportBank statements for checking, savings and CDsNot all of these documents are required, but if you have a poor credit history, anything you can produce that demonstrates you have become responsible with your money will be considered a plus. You should also expect the lender to ask questions about your credit history that may reflect negatively on you. Things like:Have you been involved in any lawsuits?Do you have any judgments against your or items in collection?Have you declared bankcrupcy or had a foreclosure against you?What is your ethnic background?The last question would seem to violate anti-discrimination laws, but it is required by the government so that it can keep data on lending to minorities and make sure they aren’t routinely turned down or charged excessive fees.The purpose of an in-person interview is to convince the lender that if you receive a loan, you can comfortably make payments. Any evidence you have that can support that fact – especially proof that you paid off loans on assets like a car, motorcycle or boat in the past – are going to work in your favor.Pros and Cons of Bad Credit LoansIt makes sense to use caution when taking on any loan, but if you have bad credit, things aren’t good. Don’t make it worse.Be careful who do you do business with on a bad credit loan. If the lender doesn’t require a credit check, doesn’t check your income; guarantees you’ll be approved; can’t be found for customer reviews or a Better Business Bureau ranking, it might be time to look elsewhere. Those are red-flag warnings that you might get scammed.Closely examine the pros and cons of the situation before making a final decision.The pros for a bad credit loan are obvious:Loans for Bad Credit are Fast: Most loan applications are available online and only take a few hours to get a response. At some places, you can have the money in your account within a day.Lower Interest Rate: If you are able to get a bad credit loan, it likely would come at a lower interest rate than you pay on your credit card debt.Many Lender Options: The number of peer-to-peer lending businesses seems to double every year. If you’re patient, and make lenders compete for your business, you might find a loan with an interest rate that you can afford.Repayment Term Length: Depending on who the lender is, repayment terms could stretch anywhere from one to five years.Improve Your Credit Score: If you commit to making on-time payments, your credit score will improve and make you a more desirable candidate next time you need a loan.The cons for bad credit loans are just as obvious:High interest rates. You’re a risk so the lender wants a reward; sometimes a huge reward.Fees and penalties. Read the fine print. Is there a loan origination fee? What is the late fee? You may have to pay a fee for making payments by check.Collateral sometimes required. You may have to put a house or car at risk to get the loan. If you miss payments, you could lose that house or car.Might not be licensed. Not every online lender is licensed in every state. Be sure the company you choose is certified in your state before you start paying for their service.Be sure you have multiple offers before making a final decision. The competition gives you a chance to compare and research the company you eventually choose.Where To Get A Loan With Bad CreditThere are some outlets for people looking for bad credit loans, but it definitely will take some shopping around to find interest rates and repayment terms you can afford.The big national and regional banks stick tightly to credit score ratings so don’t bother with that unless you have taken time to clean up your credit report and raise your score.If you don’t have time to improve your score, find a loan from the sources listed below.Credit Union Loans For Bad CreditA credit union – especially one affiliated with your employer or one that is community-based – may be willing to look beyond a poor credit history and make a judgment about whether it will loan you money based on your character and your promise to repay. Think of credit unions the way you would a small community bank from years ago.The most promising aspect of a credit union loan is the interest rate ceiling of 18%, which applies to anyone, regardless of their credit score. A similar loan from a bank could run you as much as 36% interest.That can make a huge difference in the payout you make on a bad credit loan. Let’s say you have a three-year, $10,000 loan. Here is the total repayment:18% — $13,014.36% — $16,489.The chance to save more than $3,000 makes it worth looking into enrolling in a credit union. Almost all credit unions are actively looking for borrowers. If you can afford terms that match your credit history, you are likely to find a credit union somewhere willing to work with you.If you are a vteran of the arm forces, you might want to approach the Navy Federal Credit Union or PenFed Credit Union. If you are a teacher or government worker, you might check out State Employees Credit Union or Schoolsfirst Credit Union.Almost every consumer could qualify for some credit union. By joining, you could position yourself for much more favorable loan terms, regardless of your credit score.Borrow from Family or FriendsThis is dangerous from a relationship standpoint, but makes a lot of sense from a financial and loan-anxiety standpoint because it should be easier to get approval and a break on terms.Family and friends aren’t likely to put you through a grueling qualifying process and probably would cut you some slack on the interest rate charged compared to what you would get from lending institutions that make bad credit loans.Treat any loan from someone you know just as if it were an important business transaction between you and a stranger. That means it should be formalized with clear documentation and legally recorded. To avoid future problems, create a written contract that includes the loan terms and interest rate, and what will happen if you cannot repay the debt.Get a Co-SignerIf borrowing from a friend or relative is not possible, you can still approach someone you know with good credit about co-signing on for a bad credit loan.With a qualified co-signer, the lender will set the loan terms based on the credit score of the person with good credit, who will then be equally responsible for repayment. All payment information will be recorded on both your credit report and your co-signer’s, so if you default on the loan, or you’re late with payments, you both suffer. However, if you make timely payments, your own score will improve, making it easier to obtain future loans without a co-signer.Home Equity Loan with Bad CreditIf you have equity in your home, you can apply for a home equity loan . Your home is used as collateral, and home equity loans can be obtained regardless of your credit score. The interest rate is usually low, because the loan is secured by the home. Also, the interest you pay on a home equity loan is usually tax-deductible.It is important to remember that tapping your home equity puts your property in jeopardy if you don’t repay the debt. But if you are disciplined and have a reliable source of income, it is an inexpensive way to borrow from a reputable lender when you have bad credit.Peer-to-Peer LendingPEER TO PEER LENDING, also known as P2P lending, has only been around since 2005. It’s an online platform that allows you to get a bad credit loan directly from another individual or group of individuals rather than from an institution. Potential borrowers post a loan listing on various peer-to-peer websites, indicating the amount needed and what it’s for. Investors review the loan listings and choose borrowers they wish to fund.Your credit score is still a factor, but since an individual investor has much greater leeway in how factors are weighted, these loans are often more readily available for people with bad credit. Lending standards are significantly more lenient and interest rates are usually lower than those offered by traditional lenders. In addition, peer-to-peer websites help evaluate risk for the lender, while verifying the lender’s credentials for the borrower.Here are some examples of peer-to-peer lending institutions:Peer-to-Peer Lender ExamplesLender NameBorrowing LevelsLoan TermsMinimum Credit ScoreInterest RangesOrigination FeeTime to Receive FundsLending CLUB$1,000 to $35,0003 years or 5 years6005.98% to 35.89%1% to 6% of loan amountOne weekPEERFORM$4,000 to $35,0003 years or 5 years6005.99% to 29.99%1% to 6% of loan amountUp to two weeksProsper Marketplace$2,000 to $35,0003 years or 5 years6405.99% to 35.99%1% to 5% of loan amountOne to three business daysSOFI$5,000 to $100,0003 years to 7 years6605% to 15%NoneOne weekUpstart$1,000 to $50,0003 years to 5 years6207.43% to 29.99%1% to 8% of loan amountOne dayOnline Personal LoansTechnology and a wide gap in the marketplace have opened the door for Personal Loan Lenders, a new industry that has created an option for people with low credit scores.These lenders are essentially banks that don’t have offices. They do their work online and offer bad credit loans for things like debt consolidation and home repairs. Their primary appeal is they work fast. They can make decisions in minutes and deposit funds in an account in a few hours or days. Many have no application fee or pre-payment penalty.Online personal loan applications are simple and easy to fill out. Credit scores are only a part of the decision-making process so this could be an appealing option if you have bad credit or no credit. In fact, some personal loan lenders have their own credit-score model and don’t use FICO scores. Other factors considered include whether you have a college degree, the school your degree came from and your employment history.Online Personal Loan Lender ExamplesLender NameBorrowing LevelsLoan TermsMinimum Credit ScoreInterest RangesOrigination FeeTime to Receive FundsAvant$2,000 to $35,0002 years to 5 years5809.95% to 35.99%4.75% of loan amountTwo daysBEST EGG$2,000 to $35,0003 years or 5 years6405.99% to 29.99%0.99% to 5.99% of loan amountNext dayEARNEST$2,000 to $50,0001 years to 3 years7205.25% to 14.24%NoneOne weekONE MAIN;$1,500 to $25,0001 years to 5 yearsNone17.59% to 35.99%Varies by stateSame daySecured vs. Unsecured Bad Credit LoansIf your credit score does not impress banks or credit unions, the best chance to get money you need is through a secured loan.A secured loan is one in which you borrow against an asset you own, such as a home, car, boat, property, savings or even stocks.The lender will hold the asset as collateral against you defaulting on the loan. Secured loans offer lower interest rates, better terms and access to larger amounts of money than unsecured loans.An unsecured loan has nothing more than a promise that you will repay behind it and could be very difficult to get from most banks. Banks are willing to make unsecured loans to their best customers – people who have the income and credit history to prove they will repay the loan – but are very cautious about lending money otherwise.An unsecured loan is no risk for the borrower, but high risk for the bank so you can expect considerably higher interest rate charges and little flexibility on qualifying or terms of the loans.Some banks will make secured loans based on the amount you have in a savings account or the value of any stocks you own. The value of getting a secured loan against savings or stocks is that you will not need to liquidate the asset so when you have paid off the loan, you still own the savings or stocks.However, if you plan to use savings or stocks as collateral, most financial advisors suggest you liquidate them and use the money to pay whatever debt you are trying to settle rather than take out a loan.

Practice what you preach… right?Seems weird that someone who invests in real estate wouldn’t invest in their primary residence. What’s going on here?Obviously this isn’t true in all cases, but it’s definitely true for me.I believe real estate is one of the best investments you can make. However, when it comes to your primary residence there is really only one circumstance where you should own your own house if you plan on making money from it.Other than this one circumstance, renting usually makes more sense. (I’ll reveal that at the very bottom.)Let me break it down and show you how the numbers add up.Let’s say I want to live in a million dollar home in Los Angeles. Believe it or not, this is not an outrageously priced home for the LA area.So… let’s look at the numbers if I buy a million dollar home:Purchase price = $1,000,000Down payment = 20%, which is $200,000Monthly mortgage payment on a 30 year fixed rate term at a 4% rate on $800,000 (remember this is a jumbo loan with higher rates) = $3,819Annual property taxes (which is 1.25% of purchase price in LA County) = $12,500 (or $1,042 per month)Annual upkeep expenses (I’m talking capital expenses that include everything from landscaping, paint, roof, driveway, termites, windows, carpets, etc.) about $1,000 per month. It costs a lot to upkeep a $1,000,000 house.Annual property insurance (this depends on the region, but LA is known for wildfires, so insurance can be very high) about $500 per month.HOA dues (which is not applicable for every home, but if you have a million dollar house, there is a strong chance you live in a community that has some type of dues) = $200 / monthSo here are the costs you’re looking at that are required to simply ‘operate’ the house:Mortgage = $3,819 / monthProperty taxes = $1,042 / monthUpkeep expenses = $1,000 / monthProperty insurance = $500/ monthHOA = $200 / monthTotal = $6,561 / monthRemember, this does NOT include utilities like water, power, gas, sewer/septic, internet, cable/satellite, etc.AND… you have to put down a minimum of $200,000 to make this all happen.So, we’re looking at $6,561 in minimum monthly expenses (again, not including utilities).You can rent many $1,000,000 homes in LA right now for less than $5,000.Most people will say something like, “Yeah, but that money is going towards paying off your loan.”Well, let’s look at how much money is actually going to pay off that loan…Mortgage = $3,819 / month… BUT, the way mortgage payments work is that in the beginning of the term, you are paying almost all interest. That means a very small portion of the payment is actually paying off your principal. The banks do this to ensure that they are getting paid first.Source: Mortgage CalculatorOn a $1,000,000 loan, you only pay off a small portion of your principal for the first 5 years. Yes, that interest is tax deductible, but it isn’t building equity into your home.Property tax = $12,500 / year. That doesn’t go to anything. You have to pay that every year no matter what, and it goes up every year.Property maintenance = $12,000 / year. This doesn’t go away either. In fact, it can go up as your home gets older and needs more repair.Property insurance = $6,000 / year. Guess what? This doesn’t go away either! No matter what, you need to insure your home if it’s financed. The bank requires it.HOA = $2,400 / year. Again, not going into the home equity. It’s always required and usually goes up over time.Check this out:Source: MCSee the “Total Interest Paid,” the “Total Tax Paid,” the “Total HOA fees,” and the “Total Home Insurance?”Those all add up to…. wait for it… $1,201,956 … that’s the total amount of money you will spend that does NOT go towards paying off that $800,000 loan.In other words… look at the amount in the bottom right corner above… that’s over 2 MILLION dollars. That’s how much it would cost to buy a $1,000,000 house over 30 years.You’re paying an extra million dollars to buy a million dollar house… AND when you’re done paying off the loan, you still have to pay property tax, property insurance, HOA dues, maintenance, etc.….READ THE ABOVE PARAGRAPH AGAIN.….Now, the traditional argument is that your house is increasing in value and will at least match inflation. This is absolutely true.However, if you are serious about investing, there are other ways to increase your wealth much faster and efficiently.And one of those methods is by buying real estate to rent out to others. Yes, you need to have tenants that pay off your debt for you.Make your tenants build your equity. Then you get all the tax benefits, you get all the free equity built up, and you get a property portfolio that can grow and grow. That’s the key. Make your tenants pay.-Oh… and that one circumstance where buying a personal residence makes sense:If you can buy a home at a significantly discounted price at the bottom of a real estate cycle, then you can sell it two years later for what I call “THE GREATEST TAX BREAK AVAILABLE TO THE AVERAGE US CITIZEN.”And that is the capital gains tax break you get. If you live in your home for 2 or more years before selling, you can walk with $250k tax free for a single individual OR $500k if you’re married.That is the one circumstance where buying your primary residence makes cents!-I guarantee that this idea will ruffle people’s feathers. It goes against traditional wealth building ideas. But guess what? I learned this first hand. I can tell you from my own mistakes that this is pretty damn accurate.I write about this kind of stuff weekly. I definitely think there are some great real estate investments out there, but you really have to dig into the numbers and not blindly think that buying a house is a good idea.That said, there are many MANY other investments (some which don’t have to do with real estate) that look very attractive right now. Let’s face it, real estate is expensive, so we need to look in other areas if we want to continue to be successful. You can go here to read all kinds of free stuff like this. Sign up to get free extras if you want… or don’t if you don’t want…

Title XIII (Lucky #13!) of the larger bipartisan Housing and Community Development Act of 1992, which became Public Law 102-550.http://en.wikisource.org/wiki/Housing_and_Community_Development_Act_of_1992/Title_XIIIhttp://thomas.loc.gov/cgi-bin/bdquery/z?d102:HR05334:@@@L&summ2=m&It was adopted as Title 12, Chapter 46, Section 4501 of the US Federal Code. http://uscode.house.gov/download/pls/12C46.txtSee paragraph 7 of the Statute:(7) the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation have an affirmative obligation to facilitate the financing of affordable housing for low- and moderate-income families in a manner consistent with their overall public purposes, while maintaining a strong financial condition and a reasonable economic return; andThe full act passed with bipartisan support in Congress and was signed on 10/28/1992 by President George H. W. Bush. Although seeds don't sprout without fertile soil, that Congressional mandate to 'help people who can't afford to buy houses to buy them' is arguably the seed for the 2008 Mortgage Crisis.Building on that, the 1999 repeal of key provisions of the Glass-Steagall Act (http://en.wikisource.org/wiki/Housing_and_Community_Development_Act_of_1992/Title_XIII), which kept investment and commercial banks separate provided potent fertilizer for that seed. Convenient to my metaphor is the key role that fertlizer plays in homemade bombs.Connecting the dots:Congress directs Fannie Mae and Freddie Mac to buy higher-risk mortgages (issued to borrowers who were less-equipped to be able to pay them) and then perform their corporate function and securitize those mortgages.Supply follows demand. The Congressional mandate created a market for ugly mortgages.When Glass-Steagall's provisions were repealed by the Gramm-Leach-Bailey Act (http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act), the newly combined investment/lending institutions created a very-well equipped seller to meet the buying demands of the Government-Sponsored Entities. They saw an opportunity to create return for their shareholders, and so they pursued that. Knowing that they'd have a ready (and legally mandated) buyer for high-risk notes, they started issuing mortgages in droves.When the investing/lending banks saw investors buying these mortgage-backed securities -- which were especially appealing as people fled from dot-com stocks -- they recognized that they were uniquely well equipped to both issue the mortgages AND then sell the securities themselves, making a profit from fees on both ends of the transactions. They were able to look at credit ratings agencies like Moody's and S&P and say, "Hey -- the US government is doing this sort of stuff via Fannie & Freddie. How risky can this possibly be?"Homes needed to be more affordable (per the Congressional mandate), but everyone still needs to make a profit. That led to the rising popularity of "interest only" and "adjustable rate mortgages," which effectively made the initial cost of buying a home cheaper...while simultaneously allowing the purchase value of homes to inflate. As long as housing prices continued to go up, everyone would win! Homeowners -- including real estate speculators who could now afford to buy more properties -- would make a profit on ever-rising home equity value, investors would profit from their investment in "mortgage-backed collateralized debt obligations," and banks would win on transaction fees all around.Recognizing that these mortgages were indeed high risk, the banks decided to seek insurance policies against borrowers failing to meet payments. Enter "Credit Default Swaps."Suddenly, more people were buying homes! They were cheaper to get into! There was a rise in demand...and, as we established, supply follows demand. Construction companies started building more new homes because people wanted them. The increased supply started pushing home prices DOWN, because there was greater selection and competition.Here's where things start to really unravel -- because the entire linchpin for the entire arrangement was home prices continuing to go up.Homeowners who got 5 or 7 year adjustable rate mortgages between 2000 and 2003 started to see their payments increase at the same time that the value of their home were dropping. Monthly payments were going up -- and a solid number of these homeowners wouldn't have been able to afford a 30-year fixed in the first place -- but the value of their houses were going down. So they tried to sell their homes.This further increased the supply of available housing.Which dropped prices further.People who bought into interest-only mortgages saw the same effect and found themselves more quickly falling underwater, since they hadn't been building up actual equity in their home. They too tried to sell. Housing supply increased further and prices decreased further. The core assumption that led to the perceived value of mortgage-backed securities was even more deeply undercut.By this point, since the banks had been selling them aggressively, these securities were all over the place: hedge funds, pension funds, private equity, and other places. Because the now-failing loans (issued to riskier borrowers due to Congressional mandate, and greatly facilitated and accelerated by relaxed banking regulations) had been packaged and divided into lots and lots of tiny securitized pieces, the general market couldn't really assess what the value of any given security was actually worth. Compounding this was major confusion and chaos around the fair value of the assets and the appropriate application of the SEC's "mark to market" accounting rules (http://en.wikipedia.org/wiki/Mark-to-market_accounting#Effect_on_subprime_crisis_and_Emergency_Economic_Stabilization_Act_of_2008), which had been the subject of tightening and scrutiny in the wake of the Enron scandal that unfolded in 2001 (http://en.wikipedia.org/wiki/Enron_scandal#Mark-to-market_accounting).Banks started failing because they couldn't meet their obligations to investors. Insurance companies got pulled in, as they'd issued credit default swaps. Fannie Mae & Freddie Mac went from being "backstopped by the government" to being effective subsidiaries due to insolvency. The various funds that invested heavily in mortgages failed, because no one could figure out what they were worth.And, of course, "low- and moderate-income families" (that probably should've been priced out of the housing market in the first place) found themselves foreclosed upon.Then those "low- and moderate-income families" couldn't find jobs. Manufacturing had already moved offshore, and a previously booming home construction market had now collapsed due to oversupply of homes.Home values had collapsed, leading to a huge falloff in discretionary spending. Car sales, retail jobs, and the like followed – leading to even more damage to the very people that the initial provision in 1992 was supposed to help.It was (and still is) a complex chain with plenty of poor decisions throughout that made things progressively worse at each step. Perhaps individual bankers and fund managers should have looked beyond their quarterly bonuses. Perhaps low income people who were being presented with an opportunity to own their own home should've taken a more serious -- and methodical -- look at their own financial situations (and perhaps teachers and schools, which always seem to get knocked for all social ills, should have done a better job of equipping students with financial literacy skills over the past three decades). Perhaps Bank Executives should have ignored shareholder pressures (and spectacular incentives) to maximize immediate returns.However, the U.S. Congress (which has more buying power than any other single entity in the United States) wanted the initial effect...and then made it much much easier for things to get catastrophically out of control.