From the lending standpoint, loans of $417K or less are not difficult to get, and even larger amounts are still available.
America is not going away. Lenders of money are not going to disappear.
Rates are not going insane for those who QUALIFY.
The media will blow this out of proportion, I am sure.
We are just talking about MONEY & wealth. It’s not a terminal disease. Some people will be ruined.
Many people ARE freaking out. They don’t know what to do.
I have refi loans to submit this week, maybe they will fund, maybe they won’t. I’m not stressed. I’ve been through volatile markets before.
I’m off for a couple days in Mexico this week for some R&R and lobster & beer. The world isn’t coming to an end.
It will give some mortgage scumbags a reason to screw people by telling them it’s the best rate they can get.
Desperate times call for desperate measures. A LO that needs money desperately will try and screw people to max out their take on a loan.
Everything to a lender is risk/reward. GSE’s are still backing loans of under $417K
The more you have to put down, the higher your credit score, the easier it will be to get a loan.
There IS money available for loans. There are millions of people who will have no problem, other than reduced net worth.
There will be a period of correction. I don’t see rates exploding as housing prices fall.
(Even IF what you say was to happen, I would rather have someone pay 10% on $300,000 purchase than 6% on $500,000 one.
Either way it’s $30K a year interest, but $300K cost gives you better options. Rates will drop, but your cost won’t change)
Always remember, tough times don’t last, but tough people do.
