Housing won’t hit bottom ’til 2012

[briansd1]

[quote=permabear]

But what is her payment going to reset to?

Interest rates may well be lower than her existing fixed-rate. LIBOR with spread is at around 3% right now. Has she called the bank to ask what her new payment is going to be? Even with principal it could be lower.

[/quote]

Here’s my acquaintance’s situation. I won’t call her a friend because acquaintance is a better word.

The mortgage balance is $345,000
Monthly interest-only payments at $1,725 6% fixed, not adjustable.
Recast (edited from reset per ucodegen’s post above) to $2,472

The place is valued at about the loan balance (on a lucky day) so no refi possible.

Her heart is not in the place anymore so I’m telling her to walk. She’s going to try to buy something else first, then walk. Hell, why not?

[quote=permabear]
I’d be curious to hear whether it’s going to go up or down. I have several coworkers who were freaking out, but then their payments went down rather than up.[/quote]

If they have adjustable rates, then they might be OK. Until rates move up. Hope they have enough equity and good enough credit to refi before rates jump.

We’ll see how long the government is able to keep rates low.

[briansd1]

[quote=sdrealtor]There is a period of time where the smart buyers can go out armed with knowledge, money and a great agent to make their own bottom.
[/quote]

I wonder… was there a time during the peak, when you said that now is the wrong time to buy? Or were you selling the “you’ve gotta pay for your lifestyle” ideal back then too?

[quote=sdrealtor]
That time is now and will persist for a few years.
[/quote]

I think that “persist for a few years” it the key here, unless you’re a hen about to lay an egg. 😉

[briansd1]

[quote=sdrealtor]There is a period of time where the smart buyers can go out armed with knowledge, money and a great agent to make their own bottom.
[/quote]

I wonder… was there a time during the peak, when you said that now is the wrong time to buy? Or were you selling the “you’ve gotta pay for your lifestyle” ideal back then too?

[quote=sdrealtor]
That time is now and will persist for a few years.
[/quote]

I think that “persist for a few years” it the key here, unless you’re a hen about to lay an egg. 😉

[briansd1]

[quote=sdrealtor]There is a period of time where the smart buyers can go out armed with knowledge, money and a great agent to make their own bottom.
[/quote]

I wonder… was there a time during the peak, when you said that now is the wrong time to buy? Or were you selling the “you’ve gotta pay for your lifestyle” ideal back then too?

[quote=sdrealtor]
That time is now and will persist for a few years.
[/quote]

I think that “persist for a few years” it the key here, unless you’re a hen about to lay an egg. 😉

[briansd1]

[quote=sdrealtor]There is a period of time where the smart buyers can go out armed with knowledge, money and a great agent to make their own bottom.
[/quote]

I wonder… was there a time during the peak, when you said that now is the wrong time to buy? Or were you selling the “you’ve gotta pay for your lifestyle” ideal back then too?

[quote=sdrealtor]
That time is now and will persist for a few years.
[/quote]

I think that “persist for a few years” it the key here, unless you’re a hen about to lay an egg. 😉

[briansd1]

[quote=sdrealtor]There is a period of time where the smart buyers can go out armed with knowledge, money and a great agent to make their own bottom.
[/quote]

I wonder… was there a time during the peak, when you said that now is the wrong time to buy? Or were you selling the “you’ve gotta pay for your lifestyle” ideal back then too?

[quote=sdrealtor]
That time is now and will persist for a few years.
[/quote]

I think that “persist for a few years” it the key here, unless you’re a hen about to lay an egg. 😉

[sdrealtor]

I sold very few homes to buyer clients around the peak. i told tons of people to rent and wait. I told clients to sell and rent for a few years. Now I am telling those same clients its time to start looking to buy.

The persist for a few years is the key but that doesnt mean wait a few years and then head out. The best deals are very elusive. The house my client is getting is the kind that stays in a family forever and only rarely do properties like this hit the market at any time or any price. If you arent looking now and arent ready to strike when that opportunity presents itself (which could take a couple eyars of work to find) it is very unlikely you will be among the truly big winners in this cycle.

[sdrealtor]

I sold very few homes to buyer clients around the peak. i told tons of people to rent and wait. I told clients to sell and rent for a few years. Now I am telling those same clients its time to start looking to buy.

The persist for a few years is the key but that doesnt mean wait a few years and then head out. The best deals are very elusive. The house my client is getting is the kind that stays in a family forever and only rarely do properties like this hit the market at any time or any price. If you arent looking now and arent ready to strike when that opportunity presents itself (which could take a couple eyars of work to find) it is very unlikely you will be among the truly big winners in this cycle.

[sdrealtor]

I sold very few homes to buyer clients around the peak. i told tons of people to rent and wait. I told clients to sell and rent for a few years. Now I am telling those same clients its time to start looking to buy.

The persist for a few years is the key but that doesnt mean wait a few years and then head out. The best deals are very elusive. The house my client is getting is the kind that stays in a family forever and only rarely do properties like this hit the market at any time or any price. If you arent looking now and arent ready to strike when that opportunity presents itself (which could take a couple eyars of work to find) it is very unlikely you will be among the truly big winners in this cycle.

[sdrealtor]

I sold very few homes to buyer clients around the peak. i told tons of people to rent and wait. I told clients to sell and rent for a few years. Now I am telling those same clients its time to start looking to buy.

The persist for a few years is the key but that doesnt mean wait a few years and then head out. The best deals are very elusive. The house my client is getting is the kind that stays in a family forever and only rarely do properties like this hit the market at any time or any price. If you arent looking now and arent ready to strike when that opportunity presents itself (which could take a couple eyars of work to find) it is very unlikely you will be among the truly big winners in this cycle.

[sdrealtor]

I sold very few homes to buyer clients around the peak. i told tons of people to rent and wait. I told clients to sell and rent for a few years. Now I am telling those same clients its time to start looking to buy.

The persist for a few years is the key but that doesnt mean wait a few years and then head out. The best deals are very elusive. The house my client is getting is the kind that stays in a family forever and only rarely do properties like this hit the market at any time or any price. If you arent looking now and arent ready to strike when that opportunity presents itself (which could take a couple eyars of work to find) it is very unlikely you will be among the truly big winners in this cycle.

[desmond]

“Those of you sitting out there waiting for some magical moment will not be among them”

That is your opinion and is no better than the guy “trying to sell newspapers”. “Magic” has nothing to do with anything, another cheap worthless comment by you.

[desmond]

“Those of you sitting out there waiting for some magical moment will not be among them”

That is your opinion and is no better than the guy “trying to sell newspapers”. “Magic” has nothing to do with anything, another cheap worthless comment by you.

[desmond]

“Those of you sitting out there waiting for some magical moment will not be among them”

That is your opinion and is no better than the guy “trying to sell newspapers”. “Magic” has nothing to do with anything, another cheap worthless comment by you.

[desmond]

“Those of you sitting out there waiting for some magical moment will not be among them”

That is your opinion and is no better than the guy “trying to sell newspapers”. “Magic” has nothing to do with anything, another cheap worthless comment by you.

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