FNM/FRE to discontinue jumbo-conforming

[an]

[quote=esmith]
All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.
[/quote]
I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

[capeman]

Couple this to a bad move on gov’t debt issuance causing rates to rise and we’ve got major price destruction way beyond what we’ve already seen.

[capeman]

Couple this to a bad move on gov’t debt issuance causing rates to rise and we’ve got major price destruction way beyond what we’ve already seen.

[capeman]

Couple this to a bad move on gov’t debt issuance causing rates to rise and we’ve got major price destruction way beyond what we’ve already seen.

[capeman]

Couple this to a bad move on gov’t debt issuance causing rates to rise and we’ve got major price destruction way beyond what we’ve already seen.

[capeman]

Couple this to a bad move on gov’t debt issuance causing rates to rise and we’ve got major price destruction way beyond what we’ve already seen.

[Eugene]

I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[Eugene]

I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[Eugene]

I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[Eugene]

I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[Eugene]

I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[an]

[quote=esmith]High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[/quote]
I know they can and I know some of them too. That’s why I said it won’t be as easy as if you make more money. If you want to make more money, go get an education. If you don’t want to do that, work 2 jobs. If you don’t want to do that, well, stop whining. I’m just saying it’s very doable to save if you put your mind to it. I want a $1M house. It won’t be easy for me, but it’ll be easy for a guy making $1M/year. Does that mean I should get some assistance because it’s hard for me to save $200k+ for a down payment?

[an]

[quote=esmith]High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[/quote]
I know they can and I know some of them too. That’s why I said it won’t be as easy as if you make more money. If you want to make more money, go get an education. If you don’t want to do that, work 2 jobs. If you don’t want to do that, well, stop whining. I’m just saying it’s very doable to save if you put your mind to it. I want a $1M house. It won’t be easy for me, but it’ll be easy for a guy making $1M/year. Does that mean I should get some assistance because it’s hard for me to save $200k+ for a down payment?

[an]

[quote=esmith]High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[/quote]
I know they can and I know some of them too. That’s why I said it won’t be as easy as if you make more money. If you want to make more money, go get an education. If you don’t want to do that, work 2 jobs. If you don’t want to do that, well, stop whining. I’m just saying it’s very doable to save if you put your mind to it. I want a $1M house. It won’t be easy for me, but it’ll be easy for a guy making $1M/year. Does that mean I should get some assistance because it’s hard for me to save $200k+ for a down payment?

[an]

[quote=esmith]High-income people can live frugal too. It’s one thing to make 3500/month after-tax and save 500/month, it’s another to make 7500/month and save 4500/month with the same standard of living.

[/quote]
I know they can and I know some of them too. That’s why I said it won’t be as easy as if you make more money. If you want to make more money, go get an education. If you don’t want to do that, work 2 jobs. If you don’t want to do that, well, stop whining. I’m just saying it’s very doable to save if you put your mind to it. I want a $1M house. It won’t be easy for me, but it’ll be easy for a guy making $1M/year. Does that mean I should get some assistance because it’s hard for me to save $200k+ for a down payment?

[Author]

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