[quote=DomoArigato]Expiration of the high conforming loan limits will still have some effect even in places like NCC. Here’s some recent data from June:
12.5% of buyers used less than 20% down while 56% of buyers used less than 30% down, so the expiration of the high conforming loan limits is definitely going to knock some potential buyers out of the NCC pool.[/quote]
the problem is you are assuming they didn’t put down 30% because they could not.
at that income level, one main way to maximize tax breaks is to push up the mortgage on the place of residence.
so if people are allowed to just put down 20%, that’s what a lot of folks will do. remember, the money in will be non-liquid, that is one incentive to not put down more than the 20% required. the second incentive is the mortgage deduction is one thing that very much favors higher income brackets, and their accountants really push that point. and certainly we had discussions on piggington with others wondering if they should minimize down payments.
