GSE limits slated to drop (PLUS bonus question for mortgage experts)

[Rich Toscano]

Oops in looking thru the posts again I see I missed bg’s post saying she thinks that jumbos require a 30% down pmt. I had read that somewhere as well. That’s the kind of thing I’m talking about… if true, that’s a definite tightening.

[bearishgurl]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

I’m not sdr, but I believe many buyers seeking jumbo products to buy in “upscale areas” have the resources to put down far more than 20-30% but choose not to because they are able to leverage their purchase without the extra mortgaged amount costing them more in the form of a higher interest rate.

Obviously, if they are paying a 1% origination fee or “points,” then this “closing cost” would be a little higher. However, the purchase money points are tax deductible. If I was in this category, I wouldn’t pay points. I would take the rate offered without points. But that is just me.

Also, I believe many of these buyers are nearing retirement and have plans to retire their *new* mortgages within ten years.

edit: I guess what I’m trying to say here is, I don’t think any “tightening” to qualify this category of already highly qualified buyers (who purchase in places like Monterey) is going to make much of a difference in prices. “Location, location, location” will always prevail as the holy grail of value in CA, even if that mantra is referring to a vacant lot :=]

[bearishgurl]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

I’m not sdr, but I believe many buyers seeking jumbo products to buy in “upscale areas” have the resources to put down far more than 20-30% but choose not to because they are able to leverage their purchase without the extra mortgaged amount costing them more in the form of a higher interest rate.

Obviously, if they are paying a 1% origination fee or “points,” then this “closing cost” would be a little higher. However, the purchase money points are tax deductible. If I was in this category, I wouldn’t pay points. I would take the rate offered without points. But that is just me.

Also, I believe many of these buyers are nearing retirement and have plans to retire their *new* mortgages within ten years.

edit: I guess what I’m trying to say here is, I don’t think any “tightening” to qualify this category of already highly qualified buyers (who purchase in places like Monterey) is going to make much of a difference in prices. “Location, location, location” will always prevail as the holy grail of value in CA, even if that mantra is referring to a vacant lot :=]

[bearishgurl]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

I’m not sdr, but I believe many buyers seeking jumbo products to buy in “upscale areas” have the resources to put down far more than 20-30% but choose not to because they are able to leverage their purchase without the extra mortgaged amount costing them more in the form of a higher interest rate.

Obviously, if they are paying a 1% origination fee or “points,” then this “closing cost” would be a little higher. However, the purchase money points are tax deductible. If I was in this category, I wouldn’t pay points. I would take the rate offered without points. But that is just me.

Also, I believe many of these buyers are nearing retirement and have plans to retire their *new* mortgages within ten years.

edit: I guess what I’m trying to say here is, I don’t think any “tightening” to qualify this category of already highly qualified buyers (who purchase in places like Monterey) is going to make much of a difference in prices. “Location, location, location” will always prevail as the holy grail of value in CA, even if that mantra is referring to a vacant lot :=]

[bearishgurl]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

I’m not sdr, but I believe many buyers seeking jumbo products to buy in “upscale areas” have the resources to put down far more than 20-30% but choose not to because they are able to leverage their purchase without the extra mortgaged amount costing them more in the form of a higher interest rate.

Obviously, if they are paying a 1% origination fee or “points,” then this “closing cost” would be a little higher. However, the purchase money points are tax deductible. If I was in this category, I wouldn’t pay points. I would take the rate offered without points. But that is just me.

Also, I believe many of these buyers are nearing retirement and have plans to retire their *new* mortgages within ten years.

edit: I guess what I’m trying to say here is, I don’t think any “tightening” to qualify this category of already highly qualified buyers (who purchase in places like Monterey) is going to make much of a difference in prices. “Location, location, location” will always prevail as the holy grail of value in CA, even if that mantra is referring to a vacant lot :=]

[bearishgurl]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

I’m not sdr, but I believe many buyers seeking jumbo products to buy in “upscale areas” have the resources to put down far more than 20-30% but choose not to because they are able to leverage their purchase without the extra mortgaged amount costing them more in the form of a higher interest rate.

Obviously, if they are paying a 1% origination fee or “points,” then this “closing cost” would be a little higher. However, the purchase money points are tax deductible. If I was in this category, I wouldn’t pay points. I would take the rate offered without points. But that is just me.

Also, I believe many of these buyers are nearing retirement and have plans to retire their *new* mortgages within ten years.

edit: I guess what I’m trying to say here is, I don’t think any “tightening” to qualify this category of already highly qualified buyers (who purchase in places like Monterey) is going to make much of a difference in prices. “Location, location, location” will always prevail as the holy grail of value in CA, even if that mantra is referring to a vacant lot :=]

[sdrealtor]

Just to be clear, I never said it was a positive…clearly it is not. My belief is that its not a big negative, at least in the areas I follow closest. Will it take some out of the market? Sure. Does that make it a negatve? absolutely. Just not a huge negative in my mind.

I dont know where everyone else hangs out but I constantly meet people with tons of money everywhere I go. Last night I was sitting at the 3rd Corner in Encinitas having dinner and glass of wine. An unassuming guy sits down next to me and we srt talking. Next thing you know he’s telling his wife is one of 3 partners in a hedge fund up in OC and they paid $25M cash yesterday in a purchase of distressed assets from the FDIC. When we left he got in his Bentley. It may not be this way everywhere but in NCC there are alot of people with a lot of money running around.

[sdrealtor]

Just to be clear, I never said it was a positive…clearly it is not. My belief is that its not a big negative, at least in the areas I follow closest. Will it take some out of the market? Sure. Does that make it a negatve? absolutely. Just not a huge negative in my mind.

I dont know where everyone else hangs out but I constantly meet people with tons of money everywhere I go. Last night I was sitting at the 3rd Corner in Encinitas having dinner and glass of wine. An unassuming guy sits down next to me and we srt talking. Next thing you know he’s telling his wife is one of 3 partners in a hedge fund up in OC and they paid $25M cash yesterday in a purchase of distressed assets from the FDIC. When we left he got in his Bentley. It may not be this way everywhere but in NCC there are alot of people with a lot of money running around.

[sdrealtor]

Just to be clear, I never said it was a positive…clearly it is not. My belief is that its not a big negative, at least in the areas I follow closest. Will it take some out of the market? Sure. Does that make it a negatve? absolutely. Just not a huge negative in my mind.

I dont know where everyone else hangs out but I constantly meet people with tons of money everywhere I go. Last night I was sitting at the 3rd Corner in Encinitas having dinner and glass of wine. An unassuming guy sits down next to me and we srt talking. Next thing you know he’s telling his wife is one of 3 partners in a hedge fund up in OC and they paid $25M cash yesterday in a purchase of distressed assets from the FDIC. When we left he got in his Bentley. It may not be this way everywhere but in NCC there are alot of people with a lot of money running around.

[sdrealtor]

Just to be clear, I never said it was a positive…clearly it is not. My belief is that its not a big negative, at least in the areas I follow closest. Will it take some out of the market? Sure. Does that make it a negatve? absolutely. Just not a huge negative in my mind.

I dont know where everyone else hangs out but I constantly meet people with tons of money everywhere I go. Last night I was sitting at the 3rd Corner in Encinitas having dinner and glass of wine. An unassuming guy sits down next to me and we srt talking. Next thing you know he’s telling his wife is one of 3 partners in a hedge fund up in OC and they paid $25M cash yesterday in a purchase of distressed assets from the FDIC. When we left he got in his Bentley. It may not be this way everywhere but in NCC there are alot of people with a lot of money running around.

[sdrealtor]

Just to be clear, I never said it was a positive…clearly it is not. My belief is that its not a big negative, at least in the areas I follow closest. Will it take some out of the market? Sure. Does that make it a negatve? absolutely. Just not a huge negative in my mind.

I dont know where everyone else hangs out but I constantly meet people with tons of money everywhere I go. Last night I was sitting at the 3rd Corner in Encinitas having dinner and glass of wine. An unassuming guy sits down next to me and we srt talking. Next thing you know he’s telling his wife is one of 3 partners in a hedge fund up in OC and they paid $25M cash yesterday in a purchase of distressed assets from the FDIC. When we left he got in his Bentley. It may not be this way everywhere but in NCC there are alot of people with a lot of money running around.

[recordsclerk]

I don’t see this affecting the foreclosure and short sale market. That market is filled with buyers with large down payments. I think the big impact will be new housing from builders and resale homes from the flippers. This sub-market is filled with marginal buyers and minimal down payments.

[recordsclerk]

I don’t see this affecting the foreclosure and short sale market. That market is filled with buyers with large down payments. I think the big impact will be new housing from builders and resale homes from the flippers. This sub-market is filled with marginal buyers and minimal down payments.

[recordsclerk]

I don’t see this affecting the foreclosure and short sale market. That market is filled with buyers with large down payments. I think the big impact will be new housing from builders and resale homes from the flippers. This sub-market is filled with marginal buyers and minimal down payments.

[recordsclerk]

I don’t see this affecting the foreclosure and short sale market. That market is filled with buyers with large down payments. I think the big impact will be new housing from builders and resale homes from the flippers. This sub-market is filled with marginal buyers and minimal down payments.

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