Home › Forums › Financial Markets/Economics › 5.00% no point loans at the moment…
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HLS.
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January 9, 2009 at 7:54 PM #327069January 11, 2009 at 11:07 AM #326993
Aecetia
ParticipantBump
January 11, 2009 at 11:07 AM #327330ParticipantBump
January 11, 2009 at 11:07 AM #327401ParticipantBump
January 11, 2009 at 11:07 AM #327422ParticipantBump
January 11, 2009 at 11:07 AM #327505ParticipantBump
January 11, 2009 at 12:05 PM #327003
barnaby33ParticipantWow in reading this thread I just had a minor epiphany. All the rate drops are doing is creating more wealth for those who don’t need it.
Its like watching boiling water, where one group of molecules has enough energy to separate from the main body and keep rising while the rest are left in the pot.
You see these low rates are only available to the most secure borrowers. Meaning those with lots of equity. Those without cannot qualify and are stuck with the higher prices creating even more incentive to walk away. This is for two reasons.
One nothing the govt is doing will keep home prices from reverting. There isn’t enough volume, people are scared and its thankfully going to stay that way.
Two those who can lock in and refi at a low rate have two great options. One they can keep the house which is now cheaper to maintain or rent it out for even less than the competition, as their cost basis is lower.
The problem with this scenario is its horribly unstable. Take the top 15% of homeowners (number pulled out of ass) and give them much more stability leaving the the other 85% completely fucked, I’d love an explanation of how that helps us form a bottom or even encourages would be home buyers to buy.
Just lovely.
Josh
January 11, 2009 at 12:05 PM #327340barnaby33ParticipantWow in reading this thread I just had a minor epiphany. All the rate drops are doing is creating more wealth for those who don’t need it.
Its like watching boiling water, where one group of molecules has enough energy to separate from the main body and keep rising while the rest are left in the pot.
You see these low rates are only available to the most secure borrowers. Meaning those with lots of equity. Those without cannot qualify and are stuck with the higher prices creating even more incentive to walk away. This is for two reasons.
One nothing the govt is doing will keep home prices from reverting. There isn’t enough volume, people are scared and its thankfully going to stay that way.
Two those who can lock in and refi at a low rate have two great options. One they can keep the house which is now cheaper to maintain or rent it out for even less than the competition, as their cost basis is lower.
The problem with this scenario is its horribly unstable. Take the top 15% of homeowners (number pulled out of ass) and give them much more stability leaving the the other 85% completely fucked, I’d love an explanation of how that helps us form a bottom or even encourages would be home buyers to buy.
Just lovely.
Josh
January 11, 2009 at 12:05 PM #327411barnaby33ParticipantWow in reading this thread I just had a minor epiphany. All the rate drops are doing is creating more wealth for those who don’t need it.
Its like watching boiling water, where one group of molecules has enough energy to separate from the main body and keep rising while the rest are left in the pot.
You see these low rates are only available to the most secure borrowers. Meaning those with lots of equity. Those without cannot qualify and are stuck with the higher prices creating even more incentive to walk away. This is for two reasons.
One nothing the govt is doing will keep home prices from reverting. There isn’t enough volume, people are scared and its thankfully going to stay that way.
Two those who can lock in and refi at a low rate have two great options. One they can keep the house which is now cheaper to maintain or rent it out for even less than the competition, as their cost basis is lower.
The problem with this scenario is its horribly unstable. Take the top 15% of homeowners (number pulled out of ass) and give them much more stability leaving the the other 85% completely fucked, I’d love an explanation of how that helps us form a bottom or even encourages would be home buyers to buy.
Just lovely.
Josh
January 11, 2009 at 12:05 PM #327432barnaby33ParticipantWow in reading this thread I just had a minor epiphany. All the rate drops are doing is creating more wealth for those who don’t need it.
Its like watching boiling water, where one group of molecules has enough energy to separate from the main body and keep rising while the rest are left in the pot.
You see these low rates are only available to the most secure borrowers. Meaning those with lots of equity. Those without cannot qualify and are stuck with the higher prices creating even more incentive to walk away. This is for two reasons.
One nothing the govt is doing will keep home prices from reverting. There isn’t enough volume, people are scared and its thankfully going to stay that way.
Two those who can lock in and refi at a low rate have two great options. One they can keep the house which is now cheaper to maintain or rent it out for even less than the competition, as their cost basis is lower.
The problem with this scenario is its horribly unstable. Take the top 15% of homeowners (number pulled out of ass) and give them much more stability leaving the the other 85% completely fucked, I’d love an explanation of how that helps us form a bottom or even encourages would be home buyers to buy.
Just lovely.
Josh
January 11, 2009 at 12:05 PM #327515barnaby33ParticipantWow in reading this thread I just had a minor epiphany. All the rate drops are doing is creating more wealth for those who don’t need it.
Its like watching boiling water, where one group of molecules has enough energy to separate from the main body and keep rising while the rest are left in the pot.
You see these low rates are only available to the most secure borrowers. Meaning those with lots of equity. Those without cannot qualify and are stuck with the higher prices creating even more incentive to walk away. This is for two reasons.
One nothing the govt is doing will keep home prices from reverting. There isn’t enough volume, people are scared and its thankfully going to stay that way.
Two those who can lock in and refi at a low rate have two great options. One they can keep the house which is now cheaper to maintain or rent it out for even less than the competition, as their cost basis is lower.
The problem with this scenario is its horribly unstable. Take the top 15% of homeowners (number pulled out of ass) and give them much more stability leaving the the other 85% completely fucked, I’d love an explanation of how that helps us form a bottom or even encourages would be home buyers to buy.
Just lovely.
Josh
January 11, 2009 at 3:14 PM #327028stansd
ParticipantSaid another way: The prudent are now being rewarded, while the profligate are being punished. As it should be. If you were a credit risk in a good economy, which many of these folks were, you are triple the risk in a bad one.
Stan
January 11, 2009 at 3:14 PM #327365ParticipantSaid another way: The prudent are now being rewarded, while the profligate are being punished. As it should be. If you were a credit risk in a good economy, which many of these folks were, you are triple the risk in a bad one.
Stan
January 11, 2009 at 3:14 PM #327436ParticipantSaid another way: The prudent are now being rewarded, while the profligate are being punished. As it should be. If you were a credit risk in a good economy, which many of these folks were, you are triple the risk in a bad one.
Stan
January 11, 2009 at 3:14 PM #327457ParticipantSaid another way: The prudent are now being rewarded, while the profligate are being punished. As it should be. If you were a credit risk in a good economy, which many of these folks were, you are triple the risk in a bad one.
Stan
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