Is it ALT-A turn

[farbet]

Is Ninja loans same as ALT A loans

[DWCAP]

FSD, I was one of those who looked at the numers, and said we are screwed too. I am starting to adjust my thinking to what you are saying alittle, but I dont know if things arnt deeper than the interest rate suggests.
This whole mess was triggered by the FED raising rates. With inflation rising, they can only hold off on worrying about inflation for so long. It takes a year to get cuts into the economy, they started in Sept. so we are half way there. In 6-8 months they will have to start fighting inflation instead of fanning it, and the resets on these morgages will rise.
Also, just because these things are reseting, even to a lower interst rate, doesnt mean the monthly payments are not jumping. How many of these had horrendiously low teaser rates for the first year or two at maybe 1%-3%. How many had intro periods where they were interest only (or not even that) and then now are reseting to include principal into the mix. That could be a jump of 20%+ even if the interest rate didnt move an inch.
It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.

[DWCAP]

FSD, I was one of those who looked at the numers, and said we are screwed too. I am starting to adjust my thinking to what you are saying alittle, but I dont know if things arnt deeper than the interest rate suggests.
This whole mess was triggered by the FED raising rates. With inflation rising, they can only hold off on worrying about inflation for so long. It takes a year to get cuts into the economy, they started in Sept. so we are half way there. In 6-8 months they will have to start fighting inflation instead of fanning it, and the resets on these morgages will rise.
Also, just because these things are reseting, even to a lower interst rate, doesnt mean the monthly payments are not jumping. How many of these had horrendiously low teaser rates for the first year or two at maybe 1%-3%. How many had intro periods where they were interest only (or not even that) and then now are reseting to include principal into the mix. That could be a jump of 20%+ even if the interest rate didnt move an inch.
It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.

[DWCAP]

FSD, I was one of those who looked at the numers, and said we are screwed too. I am starting to adjust my thinking to what you are saying alittle, but I dont know if things arnt deeper than the interest rate suggests.
This whole mess was triggered by the FED raising rates. With inflation rising, they can only hold off on worrying about inflation for so long. It takes a year to get cuts into the economy, they started in Sept. so we are half way there. In 6-8 months they will have to start fighting inflation instead of fanning it, and the resets on these morgages will rise.
Also, just because these things are reseting, even to a lower interst rate, doesnt mean the monthly payments are not jumping. How many of these had horrendiously low teaser rates for the first year or two at maybe 1%-3%. How many had intro periods where they were interest only (or not even that) and then now are reseting to include principal into the mix. That could be a jump of 20%+ even if the interest rate didnt move an inch.
It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.

[DWCAP]

FSD, I was one of those who looked at the numers, and said we are screwed too. I am starting to adjust my thinking to what you are saying alittle, but I dont know if things arnt deeper than the interest rate suggests.
This whole mess was triggered by the FED raising rates. With inflation rising, they can only hold off on worrying about inflation for so long. It takes a year to get cuts into the economy, they started in Sept. so we are half way there. In 6-8 months they will have to start fighting inflation instead of fanning it, and the resets on these morgages will rise.
Also, just because these things are reseting, even to a lower interst rate, doesnt mean the monthly payments are not jumping. How many of these had horrendiously low teaser rates for the first year or two at maybe 1%-3%. How many had intro periods where they were interest only (or not even that) and then now are reseting to include principal into the mix. That could be a jump of 20%+ even if the interest rate didnt move an inch.
It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.

[DWCAP]

FSD, I was one of those who looked at the numers, and said we are screwed too. I am starting to adjust my thinking to what you are saying alittle, but I dont know if things arnt deeper than the interest rate suggests.
This whole mess was triggered by the FED raising rates. With inflation rising, they can only hold off on worrying about inflation for so long. It takes a year to get cuts into the economy, they started in Sept. so we are half way there. In 6-8 months they will have to start fighting inflation instead of fanning it, and the resets on these morgages will rise.
Also, just because these things are reseting, even to a lower interst rate, doesnt mean the monthly payments are not jumping. How many of these had horrendiously low teaser rates for the first year or two at maybe 1%-3%. How many had intro periods where they were interest only (or not even that) and then now are reseting to include principal into the mix. That could be a jump of 20%+ even if the interest rate didnt move an inch.
It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.

[(former)FormerSanDiegan]

DWCAP –
I agree with you. Those with teaser (neg-am) payments will still be screwed. Those with Interest-only options will also see a substantial jump (say 20% or more) and those in this second group that did not plan ahead (by saving) or who haven’t experienced at least 4% annual raises will also get pinched.

The wild card of course is rates. Inflation expectations could result in higher rates down the road … say a year from now. If short-term rates returned to their recent peak (up a couple percent from current rates) the payment shocks would be difficult for anyone to absorb.

It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.
Well said.

[(former)FormerSanDiegan]

DWCAP –
I agree with you. Those with teaser (neg-am) payments will still be screwed. Those with Interest-only options will also see a substantial jump (say 20% or more) and those in this second group that did not plan ahead (by saving) or who haven’t experienced at least 4% annual raises will also get pinched.

The wild card of course is rates. Inflation expectations could result in higher rates down the road … say a year from now. If short-term rates returned to their recent peak (up a couple percent from current rates) the payment shocks would be difficult for anyone to absorb.

It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.
Well said.

[(former)FormerSanDiegan]

DWCAP –
I agree with you. Those with teaser (neg-am) payments will still be screwed. Those with Interest-only options will also see a substantial jump (say 20% or more) and those in this second group that did not plan ahead (by saving) or who haven’t experienced at least 4% annual raises will also get pinched.

The wild card of course is rates. Inflation expectations could result in higher rates down the road … say a year from now. If short-term rates returned to their recent peak (up a couple percent from current rates) the payment shocks would be difficult for anyone to absorb.

It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.
Well said.

[(former)FormerSanDiegan]

DWCAP –
I agree with you. Those with teaser (neg-am) payments will still be screwed. Those with Interest-only options will also see a substantial jump (say 20% or more) and those in this second group that did not plan ahead (by saving) or who haven’t experienced at least 4% annual raises will also get pinched.

The wild card of course is rates. Inflation expectations could result in higher rates down the road … say a year from now. If short-term rates returned to their recent peak (up a couple percent from current rates) the payment shocks would be difficult for anyone to absorb.

It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.
Well said.

[(former)FormerSanDiegan]

DWCAP –
I agree with you. Those with teaser (neg-am) payments will still be screwed. Those with Interest-only options will also see a substantial jump (say 20% or more) and those in this second group that did not plan ahead (by saving) or who haven’t experienced at least 4% annual raises will also get pinched.

The wild card of course is rates. Inflation expectations could result in higher rates down the road … say a year from now. If short-term rates returned to their recent peak (up a couple percent from current rates) the payment shocks would be difficult for anyone to absorb.

It isnt as bad as the numbers make it seem, but it isnt as good as the interest rates make it seem either.
Well said.

[cr]

Yes ALT-A were the No Income, No Job, or Asset loans that helped coin the phrase “if you can fog a mirror, you can get a loan.”

I think they basically assume the people applying for them have good credit. The alt refers to them being “alternative”.

In other words they’re gay.

Seriously though, the default rate on these could be worse than sub-prime. Realtors/brokers would say these are for people with fluctuating incomes like actors or entrepreneurs, but not in recent years. Unless you replace actor with teacher, and entrepreneur with house wife.

[cr]

Yes ALT-A were the No Income, No Job, or Asset loans that helped coin the phrase “if you can fog a mirror, you can get a loan.”

I think they basically assume the people applying for them have good credit. The alt refers to them being “alternative”.

In other words they’re gay.

Seriously though, the default rate on these could be worse than sub-prime. Realtors/brokers would say these are for people with fluctuating incomes like actors or entrepreneurs, but not in recent years. Unless you replace actor with teacher, and entrepreneur with house wife.

[cr]

Yes ALT-A were the No Income, No Job, or Asset loans that helped coin the phrase “if you can fog a mirror, you can get a loan.”

I think they basically assume the people applying for them have good credit. The alt refers to them being “alternative”.

In other words they’re gay.

Seriously though, the default rate on these could be worse than sub-prime. Realtors/brokers would say these are for people with fluctuating incomes like actors or entrepreneurs, but not in recent years. Unless you replace actor with teacher, and entrepreneur with house wife.

[cr]

Yes ALT-A were the No Income, No Job, or Asset loans that helped coin the phrase “if you can fog a mirror, you can get a loan.”

I think they basically assume the people applying for them have good credit. The alt refers to them being “alternative”.

In other words they’re gay.

Seriously though, the default rate on these could be worse than sub-prime. Realtors/brokers would say these are for people with fluctuating incomes like actors or entrepreneurs, but not in recent years. Unless you replace actor with teacher, and entrepreneur with house wife.

[Author]

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