Bernanke lowers rates +

[Raybyrnes]

Not suggesting anyone run out and buy but we are looking at lower costing homes and lower costing money. At some point you have to start to put a value on locking in a low fixed rate. The paper will beging to offset a portion on the over pay for the home.

For example I don’t particularly liek to pay retail price for a car but I might be willing to pay a slightly higher financed price when they are offereing me 72 months at 0 percent knowing that my own money will be earning me soem rate of retunr over that time and that the payment tomorrow will we worth less due to inflation.

[jpinpb]

I didn’t read all the posts, but when first posted, I read about Wells Fargo requiring 20% down before they’ll consider lending to you.

Some bankers are not completely out of their minds.

So will we all have to resort to ARMs to buy a house? Seems risky. Lowering today, but what about next year? Many of these defaults and foreclosures, seems to me, they were not Annie thinking about tomorrow.

[jpinpb]

I didn’t read all the posts, but when first posted, I read about Wells Fargo requiring 20% down before they’ll consider lending to you.

Some bankers are not completely out of their minds.

So will we all have to resort to ARMs to buy a house? Seems risky. Lowering today, but what about next year? Many of these defaults and foreclosures, seems to me, they were not Annie thinking about tomorrow.

[jpinpb]

I didn’t read all the posts, but when first posted, I read about Wells Fargo requiring 20% down before they’ll consider lending to you.

Some bankers are not completely out of their minds.

So will we all have to resort to ARMs to buy a house? Seems risky. Lowering today, but what about next year? Many of these defaults and foreclosures, seems to me, they were not Annie thinking about tomorrow.

[jpinpb]

I didn’t read all the posts, but when first posted, I read about Wells Fargo requiring 20% down before they’ll consider lending to you.

Some bankers are not completely out of their minds.

So will we all have to resort to ARMs to buy a house? Seems risky. Lowering today, but what about next year? Many of these defaults and foreclosures, seems to me, they were not Annie thinking about tomorrow.

[jpinpb]

I didn’t read all the posts, but when first posted, I read about Wells Fargo requiring 20% down before they’ll consider lending to you.

Some bankers are not completely out of their minds.

So will we all have to resort to ARMs to buy a house? Seems risky. Lowering today, but what about next year? Many of these defaults and foreclosures, seems to me, they were not Annie thinking about tomorrow.

[pemeliza]

I have to agree with Raybyrnes a bit on this one.

The rate on a 5/1 arm is only slightly over 5%. I still don’t think it is time to buy, but these low rates look like they could at least give buyers and bagholders the means to perpetuate this mess (if they can qualify).

I’m starting to feel like a bagholder myself with Big Ben submarining the value of my dollar stash. At some point all of us pigs are going to have to confront the fact that the road to prudent wealth has gotten longer and we may be on the losing side of this epic battle.

[pemeliza]

I have to agree with Raybyrnes a bit on this one.

The rate on a 5/1 arm is only slightly over 5%. I still don’t think it is time to buy, but these low rates look like they could at least give buyers and bagholders the means to perpetuate this mess (if they can qualify).

I’m starting to feel like a bagholder myself with Big Ben submarining the value of my dollar stash. At some point all of us pigs are going to have to confront the fact that the road to prudent wealth has gotten longer and we may be on the losing side of this epic battle.

[pemeliza]

I have to agree with Raybyrnes a bit on this one.

The rate on a 5/1 arm is only slightly over 5%. I still don’t think it is time to buy, but these low rates look like they could at least give buyers and bagholders the means to perpetuate this mess (if they can qualify).

I’m starting to feel like a bagholder myself with Big Ben submarining the value of my dollar stash. At some point all of us pigs are going to have to confront the fact that the road to prudent wealth has gotten longer and we may be on the losing side of this epic battle.

[pemeliza]

I have to agree with Raybyrnes a bit on this one.

The rate on a 5/1 arm is only slightly over 5%. I still don’t think it is time to buy, but these low rates look like they could at least give buyers and bagholders the means to perpetuate this mess (if they can qualify).

I’m starting to feel like a bagholder myself with Big Ben submarining the value of my dollar stash. At some point all of us pigs are going to have to confront the fact that the road to prudent wealth has gotten longer and we may be on the losing side of this epic battle.

[pemeliza]

I have to agree with Raybyrnes a bit on this one.

The rate on a 5/1 arm is only slightly over 5%. I still don’t think it is time to buy, but these low rates look like they could at least give buyers and bagholders the means to perpetuate this mess (if they can qualify).

I’m starting to feel like a bagholder myself with Big Ben submarining the value of my dollar stash. At some point all of us pigs are going to have to confront the fact that the road to prudent wealth has gotten longer and we may be on the losing side of this epic battle.

[Raybyrnes]

The prudent thing at first appeared to be to use a 30 year fixed to finance a home. Now we are seeing how risk taking is going to be rewarded. For many borrower they are going to substancially benefit if by the time of reset interest rates ahve fallen back to their previous teaser rates. The spread between the reasonable fixed rates vs. the unprecedently low teaser rate means that those who took the risk save a ton of dough over the last 3 to 5 years. Can anyone argue against this?

[Raybyrnes]

The prudent thing at first appeared to be to use a 30 year fixed to finance a home. Now we are seeing how risk taking is going to be rewarded. For many borrower they are going to substancially benefit if by the time of reset interest rates ahve fallen back to their previous teaser rates. The spread between the reasonable fixed rates vs. the unprecedently low teaser rate means that those who took the risk save a ton of dough over the last 3 to 5 years. Can anyone argue against this?

[Raybyrnes]

The prudent thing at first appeared to be to use a 30 year fixed to finance a home. Now we are seeing how risk taking is going to be rewarded. For many borrower they are going to substancially benefit if by the time of reset interest rates ahve fallen back to their previous teaser rates. The spread between the reasonable fixed rates vs. the unprecedently low teaser rate means that those who took the risk save a ton of dough over the last 3 to 5 years. Can anyone argue against this?

[Raybyrnes]

The prudent thing at first appeared to be to use a 30 year fixed to finance a home. Now we are seeing how risk taking is going to be rewarded. For many borrower they are going to substancially benefit if by the time of reset interest rates ahve fallen back to their previous teaser rates. The spread between the reasonable fixed rates vs. the unprecedently low teaser rate means that those who took the risk save a ton of dough over the last 3 to 5 years. Can anyone argue against this?

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