INDYMAC wants more CONFORMING LOANS FULL DOC!

[rb_engineer]

I would say Hawaii is purely supply and demand. Personally, I don’t really subscribe to the “median income x == median price x”. Just like anything, price goes up if demand goes up. I would say for Alaska, its set high to attract people. Just a guess.

[bsrsharma]

I can see Hawaii being a “trophy” market with small supply. But Alaska? It has infinite amount of land compared to people making it almost worthless and one has to catch a lot of fish (if not pumping oil or gas) to afford those numbers.

[bsrsharma]

I can see Hawaii being a “trophy” market with small supply. But Alaska? It has infinite amount of land compared to people making it almost worthless and one has to catch a lot of fish (if not pumping oil or gas) to afford those numbers.

[(former)FormerSanDiegan]

The higher conforming loan limit also applies to Guam and the US Virgin Islands.

Guam ?
Can;t be expensive there.

Methinks it has something to do with political pull. Perhaps Sen Stevens and Sen Inoue had something to do with it. In Alaska’s case it falls in the same category as the bridge to nowhere.

[(former)FormerSanDiegan]

The higher conforming loan limit also applies to Guam and the US Virgin Islands.

Guam ?
Can;t be expensive there.

Methinks it has something to do with political pull. Perhaps Sen Stevens and Sen Inoue had something to do with it. In Alaska’s case it falls in the same category as the bridge to nowhere.

[GoUSC]

To put it simply I will take high interest rates and low home prices versus the opposite. At least I get a bigger write-off and can always refinance when rates get lower. Buying an expensive house with a low interest rate leaves you no where to go.

[GoUSC]

To put it simply I will take high interest rates and low home prices versus the opposite. At least I get a bigger write-off and can always refinance when rates get lower. Buying an expensive house with a low interest rate leaves you no where to go.

[bsrsharma]

I peeked at Anchorage listings, the prices aren’t too high. Feels like San Diego pre-bubble or early-bubble days. Not a bad place for equity harvesters if you like long days (and nights) and ice. Juneau is a bit pricier, but still feels like a bargain for anyone from SD/OC areas.

[bsrsharma]

I peeked at Anchorage listings, the prices aren’t too high. Feels like San Diego pre-bubble or early-bubble days. Not a bad place for equity harvesters if you like long days (and nights) and ice. Juneau is a bit pricier, but still feels like a bargain for anyone from SD/OC areas.

[(former)FormerSanDiegan]

I received a solicitation in the mail yesterday from IndyMac bank advertising 5.55% CD rates. Seems they are eager (as indicated by high rates) to borrow some funds from consumers (still cheaper than floating bonds out there). Hmmm… Wonder why ?

[(former)FormerSanDiegan]

I received a solicitation in the mail yesterday from IndyMac bank advertising 5.55% CD rates. Seems they are eager (as indicated by high rates) to borrow some funds from consumers (still cheaper than floating bonds out there). Hmmm… Wonder why ?

[Anonymous]

The non conforming market is taking a beating. I quoted a rate of 6.625% 2 weeks ago and today that same loan is at 8.5%.

[Anonymous]

The non conforming market is taking a beating. I quoted a rate of 6.625% 2 weeks ago and today that same loan is at 8.5%.

[Bugs]

I remember not so long ago making a comment about interest rates increasing above 8% and getting a couple comments saying I was being way too pessimistic.

Apparently I wasn’t being THAT pessimistic.

At this point I’d say the difference between what it takes to go from 6.5% to 8.5% on a jumbo is a lot larger than what it would take to go from 8.5% to 10%.

A $500,000 loan at 6.5% = $3143/month
A $500,000 loan at 8.5% = $3817/month
A $500,000 loan at 10.% = $4315/month.

It almost makes one wonder where the ceiling is? Could we be looking at an early 1980s credit scenario?

A $3,143/month loan payment services a $308,000 mortgage at 12%. Not counting taxes and insurance. Offset that some by the tax writeoff for the higher interest rate, but we’d still looking at a 35% haircut just because of interest rates, not counting whatever other damage to the economy would result from that type of credit contraction.

[Bugs]

I remember not so long ago making a comment about interest rates increasing above 8% and getting a couple comments saying I was being way too pessimistic.

Apparently I wasn’t being THAT pessimistic.

At this point I’d say the difference between what it takes to go from 6.5% to 8.5% on a jumbo is a lot larger than what it would take to go from 8.5% to 10%.

A $500,000 loan at 6.5% = $3143/month
A $500,000 loan at 8.5% = $3817/month
A $500,000 loan at 10.% = $4315/month.

It almost makes one wonder where the ceiling is? Could we be looking at an early 1980s credit scenario?

A $3,143/month loan payment services a $308,000 mortgage at 12%. Not counting taxes and insurance. Offset that some by the tax writeoff for the higher interest rate, but we’d still looking at a 35% haircut just because of interest rates, not counting whatever other damage to the economy would result from that type of credit contraction.

[Author]

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