Mob psychology may actually be changing

[Coronita]

I would add another line to Borat's list: 4. How many people satisfying 1,2,3 do not Already own a home. In this era of very high home ownership rate, it will be rare to find someone unencumbered by present ownership And having a lot of cash in a bank account. May be a few Piggingtonians; but who else?

 

And do you think those people will sell if they really are 1,2,3, and add to the supply that's in the market, even if prices come down? After all, it's a primary resident.

The only exceptions i see are job transfer into or out of an area.

[JWM in SD]

“Shouldn’t take longer than 8 years, 4 if you’re really disciplined”

How many times do I have to remind people that there a negative savings rate in the US??

Posters here are an exception to this and generally have good financial management skills. That is not the norm right now. It is a mistake to extrapolate that characterisitc to population in general.

[JWM in SD]

“Shouldn’t take longer than 8 years, 4 if you’re really disciplined”

How many times do I have to remind people that there a negative savings rate in the US??

Posters here are an exception to this and generally have good financial management skills. That is not the norm right now. It is a mistake to extrapolate that characterisitc to population in general.

[JWM in SD]

“Shouldn’t take longer than 8 years, 4 if you’re really disciplined”

How many times do I have to remind people that there a negative savings rate in the US??

Posters here are an exception to this and generally have good financial management skills. That is not the norm right now. It is a mistake to extrapolate that characterisitc to population in general.

[CostaMesa]

I have a question for the experts – admittedly, I’m not a finance guy.

Using the above example, I was under the impression that the $417K limit was for purchase price, not loan amount. Thus, the 20% down would shift exposure to downside price risk from the lender to the buyer.

I guess that it could go either way, but could someone who knows confirm this? Is it $417k loan value or purchase price for a conforming loan?

If it’s loan value, does that predicate a 20% down – thus setting the max purchase price at ~$521K with a $104K down? If so, I think that half-million will be the new magic number…

[CostaMesa]

I have a question for the experts – admittedly, I’m not a finance guy.

Using the above example, I was under the impression that the $417K limit was for purchase price, not loan amount. Thus, the 20% down would shift exposure to downside price risk from the lender to the buyer.

I guess that it could go either way, but could someone who knows confirm this? Is it $417k loan value or purchase price for a conforming loan?

If it’s loan value, does that predicate a 20% down – thus setting the max purchase price at ~$521K with a $104K down? If so, I think that half-million will be the new magic number…

[CostaMesa]

I have a question for the experts – admittedly, I’m not a finance guy.

Using the above example, I was under the impression that the $417K limit was for purchase price, not loan amount. Thus, the 20% down would shift exposure to downside price risk from the lender to the buyer.

I guess that it could go either way, but could someone who knows confirm this? Is it $417k loan value or purchase price for a conforming loan?

If it’s loan value, does that predicate a 20% down – thus setting the max purchase price at ~$521K with a $104K down? If so, I think that half-million will be the new magic number…

[Coronita]

How many times do I have to remind people that there a negative savings rate in the US?? Posters here are an exception to this and generally have good financial management skills. That is not the norm right now. It is a mistake to extrapolate that characterisitc to population in general.

 

No kidding, americans are bad savers?  Really? 🙂

but how many people who are "serious" buyers don't have some financial plan or financially capable? Haven't we already eliminated all the normal 100% financing people from the prospective buyer list?

[Coronita]

How many times do I have to remind people that there a negative savings rate in the US?? Posters here are an exception to this and generally have good financial management skills. That is not the norm right now. It is a mistake to extrapolate that characterisitc to population in general.

 

No kidding, americans are bad savers?  Really? 🙂

but how many people who are "serious" buyers don't have some financial plan or financially capable? Haven't we already eliminated all the normal 100% financing people from the prospective buyer list?

[Coronita]

How many times do I have to remind people that there a negative savings rate in the US?? Posters here are an exception to this and generally have good financial management skills. That is not the norm right now. It is a mistake to extrapolate that characterisitc to population in general.

 

No kidding, americans are bad savers?  Really? 🙂

but how many people who are "serious" buyers don't have some financial plan or financially capable? Haven't we already eliminated all the normal 100% financing people from the prospective buyer list?

[Navydoc]

Wow, didn’t think this post would attract this much attention!

Temeculaguy, I know their knowledge didn’t come from housing blogs. My point was to say that you are right, the major news media stories are actually sinking in, as evidenced by my observation in an arena as diametrically opposed to the financial markets as a Sunday morning post-call breakfast.

And yes, to those who question it, I do have $183,000 down, and if I found a property I was happy with I would accept the possible depreciation if I can afford the monthlys. I am a military physician, and am starting to tire of moving around. Hopefully I will get to settle in SD in 2009, and I WILL be looking to buy then. If It still looks like a long way to the bottom then, I may change my mind. It is nice to be in this position, and I’m not going to lock myself into any position considering how volatile the economy appears to be.

[Navydoc]

Wow, didn’t think this post would attract this much attention!

Temeculaguy, I know their knowledge didn’t come from housing blogs. My point was to say that you are right, the major news media stories are actually sinking in, as evidenced by my observation in an arena as diametrically opposed to the financial markets as a Sunday morning post-call breakfast.

And yes, to those who question it, I do have $183,000 down, and if I found a property I was happy with I would accept the possible depreciation if I can afford the monthlys. I am a military physician, and am starting to tire of moving around. Hopefully I will get to settle in SD in 2009, and I WILL be looking to buy then. If It still looks like a long way to the bottom then, I may change my mind. It is nice to be in this position, and I’m not going to lock myself into any position considering how volatile the economy appears to be.

[Navydoc]

Wow, didn’t think this post would attract this much attention!

Temeculaguy, I know their knowledge didn’t come from housing blogs. My point was to say that you are right, the major news media stories are actually sinking in, as evidenced by my observation in an arena as diametrically opposed to the financial markets as a Sunday morning post-call breakfast.

And yes, to those who question it, I do have $183,000 down, and if I found a property I was happy with I would accept the possible depreciation if I can afford the monthlys. I am a military physician, and am starting to tire of moving around. Hopefully I will get to settle in SD in 2009, and I WILL be looking to buy then. If It still looks like a long way to the bottom then, I may change my mind. It is nice to be in this position, and I’m not going to lock myself into any position considering how volatile the economy appears to be.

[HLS]

$417K is LOAN AMOUNT, has nothing to do with property value.

GSE’s don’t buy loans above this amount, except if the property is in Hawaii or Alaska, then the limit is $625,500.
Go figure.

Loans that are above 80% of the appraised value (but still under $417K) will require mortgage insurance.

I had a borrower sign docs on Friday, 95% loan. 30 YR Fixed, 6.25% PLUS MI payment.

He didn’t qualify for 6.74% without separate MI payment because he went stated.

[HLS]

$417K is LOAN AMOUNT, has nothing to do with property value.

GSE’s don’t buy loans above this amount, except if the property is in Hawaii or Alaska, then the limit is $625,500.
Go figure.

Loans that are above 80% of the appraised value (but still under $417K) will require mortgage insurance.

I had a borrower sign docs on Friday, 95% loan. 30 YR Fixed, 6.25% PLUS MI payment.

He didn’t qualify for 6.74% without separate MI payment because he went stated.

[Author]

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