Conforming limit to $700,000?

[Ex-SD]

Buyers will still have to get an appraisal, cough up a down payment and they can’t use a liar loan to qualify for what is still over-priced housing when compared to most markets in the country. Add to this, San Diego has been designated as a “declining market” which means the buyer has to cough up more money and jump through more hoops before the loan can close.

Frankly, the only people that I see who are going to be helped by this are people with decent credit who are current on their payments and who need to re-finance if the loan is under the new limits (provided the home hasn’t already dropped too much in value from when they bought it)……..or a buyer who buys into all the hype that NAR and CAR will start slinging and goes shopping for a home with his wallet in his mouth for the scabs to steal.

It’s not going to make a dent in the myriad of problems that plague the housing market in the bubble markets. Prices will continue to fall as more and more sellers give up and phase out of the denial stage and move into acceptance.

[Raybyrnes]

With respect to taxes.

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

[Raybyrnes]

With respect to taxes.

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

[Raybyrnes]

With respect to taxes.

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

[Raybyrnes]

With respect to taxes.

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

[Raybyrnes]

With respect to taxes.

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

[ucodegen]

@andymajumder
They really are playing it as though prices might start going up again and this may cause a lot of potential buyers to jump back in.

Maybe many knife catchers will jump in.. It may mean that I stay out for longer. With the real estate market the way it is, any down payment is dead money. Besides, with running into AMT, I can’t deduct mortgage interest when I have even a moderate LTCG (long term capital gain).

[ucodegen]

@andymajumder
They really are playing it as though prices might start going up again and this may cause a lot of potential buyers to jump back in.

Maybe many knife catchers will jump in.. It may mean that I stay out for longer. With the real estate market the way it is, any down payment is dead money. Besides, with running into AMT, I can’t deduct mortgage interest when I have even a moderate LTCG (long term capital gain).

[ucodegen]

@andymajumder
They really are playing it as though prices might start going up again and this may cause a lot of potential buyers to jump back in.

Maybe many knife catchers will jump in.. It may mean that I stay out for longer. With the real estate market the way it is, any down payment is dead money. Besides, with running into AMT, I can’t deduct mortgage interest when I have even a moderate LTCG (long term capital gain).

[ucodegen]

@andymajumder
They really are playing it as though prices might start going up again and this may cause a lot of potential buyers to jump back in.

Maybe many knife catchers will jump in.. It may mean that I stay out for longer. With the real estate market the way it is, any down payment is dead money. Besides, with running into AMT, I can’t deduct mortgage interest when I have even a moderate LTCG (long term capital gain).

[ucodegen]

@andymajumder
They really are playing it as though prices might start going up again and this may cause a lot of potential buyers to jump back in.

Maybe many knife catchers will jump in.. It may mean that I stay out for longer. With the real estate market the way it is, any down payment is dead money. Besides, with running into AMT, I can’t deduct mortgage interest when I have even a moderate LTCG (long term capital gain).

[ucodegen]

Raybyrnes

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

Social security is not a standard tax. What you put in is related to what you can take out later. SS taxes are put into the Social Security Trust Fund. The person making 97,500 and the person making 195,000 will only be able to draw down social security at the same rate. This ignores any income based phase out of social security. The Social Security Administration should be sending you a sheet every year containing the taxed social security income. The amount you can withdraw depends upon the sum of the social security taxes adjusted for the time within the social security trust fund and amortized over your projected retirement lifetime.

What this also means, is that a person making 195,000 will need to make other arrangements (ie. investing in retirement funds, 401ks etc) if they want to live near the income they have lived at when they were working.

[ucodegen]

Raybyrnes

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

Social security is not a standard tax. What you put in is related to what you can take out later. SS taxes are put into the Social Security Trust Fund. The person making 97,500 and the person making 195,000 will only be able to draw down social security at the same rate. This ignores any income based phase out of social security. The Social Security Administration should be sending you a sheet every year containing the taxed social security income. The amount you can withdraw depends upon the sum of the social security taxes adjusted for the time within the social security trust fund and amortized over your projected retirement lifetime.

What this also means, is that a person making 195,000 will need to make other arrangements (ie. investing in retirement funds, 401ks etc) if they want to live near the income they have lived at when they were working.

[ucodegen]

Raybyrnes

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

Social security is not a standard tax. What you put in is related to what you can take out later. SS taxes are put into the Social Security Trust Fund. The person making 97,500 and the person making 195,000 will only be able to draw down social security at the same rate. This ignores any income based phase out of social security. The Social Security Administration should be sending you a sheet every year containing the taxed social security income. The amount you can withdraw depends upon the sum of the social security taxes adjusted for the time within the social security trust fund and amortized over your projected retirement lifetime.

What this also means, is that a person making 195,000 will need to make other arrangements (ie. investing in retirement funds, 401ks etc) if they want to live near the income they have lived at when they were working.

[ucodegen]

Raybyrnes

The complaint I have on taxes is that SS tax cuts off at 97500 meaning that guy making 97500 is paying out 6.2% of his income yet if I make 195000 I am only paying out 3.1% as a percentage of my income. Seems that the guy making 97500 is getting screwed when you look at this as a % of income.

Social security is not a standard tax. What you put in is related to what you can take out later. SS taxes are put into the Social Security Trust Fund. The person making 97,500 and the person making 195,000 will only be able to draw down social security at the same rate. This ignores any income based phase out of social security. The Social Security Administration should be sending you a sheet every year containing the taxed social security income. The amount you can withdraw depends upon the sum of the social security taxes adjusted for the time within the social security trust fund and amortized over your projected retirement lifetime.

What this also means, is that a person making 195,000 will need to make other arrangements (ie. investing in retirement funds, 401ks etc) if they want to live near the income they have lived at when they were working.

[Author]

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