Conforming limit to $700,000?

[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.

[Raybyrnes]

I’m familiar with this fact, but from a time value consideration it is coming out today for something I am getting back tomorrow. Additionally, who is to say it is going to be there when I look for it.

[Raybyrnes]

I’m familiar with this fact, but from a time value consideration it is coming out today for something I am getting back tomorrow. Additionally, who is to say it is going to be there when I look for it.

[Raybyrnes]

I’m familiar with this fact, but from a time value consideration it is coming out today for something I am getting back tomorrow. Additionally, who is to say it is going to be there when I look for it.

[Raybyrnes]

I’m familiar with this fact, but from a time value consideration it is coming out today for something I am getting back tomorrow. Additionally, who is to say it is going to be there when I look for it.

[Raybyrnes]

I’m familiar with this fact, but from a time value consideration it is coming out today for something I am getting back tomorrow. Additionally, who is to say it is going to be there when I look for it.

[sdrealtor]

Quite frankly this is just another case of the rich getting richer. Who will it help? It will help people like me (I’m not rich but certainly well above average) reduce their debt service and free up capital for other investments. I already see properties I could cash flow on and expect even better deals soon. The insolvent and underwater will still be crushed but the financially conservative, well invested folks living well within their means will enjoy a bonanza!

[sdrealtor]

Quite frankly this is just another case of the rich getting richer. Who will it help? It will help people like me (I’m not rich but certainly well above average) reduce their debt service and free up capital for other investments. I already see properties I could cash flow on and expect even better deals soon. The insolvent and underwater will still be crushed but the financially conservative, well invested folks living well within their means will enjoy a bonanza!

[sdrealtor]

Quite frankly this is just another case of the rich getting richer. Who will it help? It will help people like me (I’m not rich but certainly well above average) reduce their debt service and free up capital for other investments. I already see properties I could cash flow on and expect even better deals soon. The insolvent and underwater will still be crushed but the financially conservative, well invested folks living well within their means will enjoy a bonanza!

[sdrealtor]

Quite frankly this is just another case of the rich getting richer. Who will it help? It will help people like me (I’m not rich but certainly well above average) reduce their debt service and free up capital for other investments. I already see properties I could cash flow on and expect even better deals soon. The insolvent and underwater will still be crushed but the financially conservative, well invested folks living well within their means will enjoy a bonanza!

[sdrealtor]

Quite frankly this is just another case of the rich getting richer. Who will it help? It will help people like me (I’m not rich but certainly well above average) reduce their debt service and free up capital for other investments. I already see properties I could cash flow on and expect even better deals soon. The insolvent and underwater will still be crushed but the financially conservative, well invested folks living well within their means will enjoy a bonanza!

[Sandi Egan]

So if San Diego’s median price drops, does that mean the max conforming loan will drop too? I can hear the real estate agents now, “Better buy now before prices drop, and you can’t get a conforming loan!”

XBoxBoy
That’s too funny! I can see it actually happening.

If the conforming limit goes up to 550K instead of 730K and then follows the median down, it actually might be a good thing. Right now there is no incentive to 700K+ sellers to lower asking prices, but with the new limits lowering the price a bit and reaching conforming territory they could substantially extend the number of prospective buyers.
Lower comps will lead to lower median, which will lead to lower conforming limit, which will pull the already lowered prices further down.
*sigh*
Probably I’ve got something wrong.

[Sandi Egan]

So if San Diego’s median price drops, does that mean the max conforming loan will drop too? I can hear the real estate agents now, “Better buy now before prices drop, and you can’t get a conforming loan!”

XBoxBoy
That’s too funny! I can see it actually happening.

If the conforming limit goes up to 550K instead of 730K and then follows the median down, it actually might be a good thing. Right now there is no incentive to 700K+ sellers to lower asking prices, but with the new limits lowering the price a bit and reaching conforming territory they could substantially extend the number of prospective buyers.
Lower comps will lead to lower median, which will lead to lower conforming limit, which will pull the already lowered prices further down.
*sigh*
Probably I’ve got something wrong.

[Sandi Egan]

So if San Diego’s median price drops, does that mean the max conforming loan will drop too? I can hear the real estate agents now, “Better buy now before prices drop, and you can’t get a conforming loan!”

XBoxBoy
That’s too funny! I can see it actually happening.

If the conforming limit goes up to 550K instead of 730K and then follows the median down, it actually might be a good thing. Right now there is no incentive to 700K+ sellers to lower asking prices, but with the new limits lowering the price a bit and reaching conforming territory they could substantially extend the number of prospective buyers.
Lower comps will lead to lower median, which will lead to lower conforming limit, which will pull the already lowered prices further down.
*sigh*
Probably I’ve got something wrong.

[Sandi Egan]

So if San Diego’s median price drops, does that mean the max conforming loan will drop too? I can hear the real estate agents now, “Better buy now before prices drop, and you can’t get a conforming loan!”

XBoxBoy
That’s too funny! I can see it actually happening.

If the conforming limit goes up to 550K instead of 730K and then follows the median down, it actually might be a good thing. Right now there is no incentive to 700K+ sellers to lower asking prices, but with the new limits lowering the price a bit and reaching conforming territory they could substantially extend the number of prospective buyers.
Lower comps will lead to lower median, which will lead to lower conforming limit, which will pull the already lowered prices further down.
*sigh*
Probably I’ve got something wrong.

[Author]

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