no loan without 20% down

[bsrsharma]

there are still programs for 100% purchases, and there are still stated income loans, IF you qualify…

That is a teaser! Who in this day wants to give away money for 100% and stated income, knowing full well the incentives for "Heads I win, tails you lose" mindset of many home buyers?

[HLS]

A teaser from WHOM ?

The loans are out there. Based on lender risk/reward, people with high credit scores who want to buy a primary residence are a risk that the lending industry is willing to take for a full doc loan.

They are in the lending business. The fact is that in the past the vast majority of people with high credit scores have not defaulted on their loans, even when upside down.

Of course they are going to have losses, and the next few years will be a test of their guidelines.

I didn’t say it was sane.

[HLS]

A teaser from WHOM ?

The loans are out there. Based on lender risk/reward, people with high credit scores who want to buy a primary residence are a risk that the lending industry is willing to take for a full doc loan.

They are in the lending business. The fact is that in the past the vast majority of people with high credit scores have not defaulted on their loans, even when upside down.

Of course they are going to have losses, and the next few years will be a test of their guidelines.

I didn’t say it was sane.

[HLS]

A teaser from WHOM ?

The loans are out there. Based on lender risk/reward, people with high credit scores who want to buy a primary residence are a risk that the lending industry is willing to take for a full doc loan.

They are in the lending business. The fact is that in the past the vast majority of people with high credit scores have not defaulted on their loans, even when upside down.

Of course they are going to have losses, and the next few years will be a test of their guidelines.

I didn’t say it was sane.

[HLS]

A teaser from WHOM ?

The loans are out there. Based on lender risk/reward, people with high credit scores who want to buy a primary residence are a risk that the lending industry is willing to take for a full doc loan.

They are in the lending business. The fact is that in the past the vast majority of people with high credit scores have not defaulted on their loans, even when upside down.

Of course they are going to have losses, and the next few years will be a test of their guidelines.

I didn’t say it was sane.

[HLS]

A teaser from WHOM ?

The loans are out there. Based on lender risk/reward, people with high credit scores who want to buy a primary residence are a risk that the lending industry is willing to take for a full doc loan.

They are in the lending business. The fact is that in the past the vast majority of people with high credit scores have not defaulted on their loans, even when upside down.

Of course they are going to have losses, and the next few years will be a test of their guidelines.

I didn’t say it was sane.

[an]

If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.

I think if the goal is to maximize the ROI but still minimize risk, purchasing a property to live in is still a good idea. With a fixed interest rate, you’re guarantee that your “rent” will not increase. So, as you keep on paying down your mortgage, you have 2 options, one is to completely pay it off. At that time, you’ll have no more mortgage payment. The other option would be to periodically refinanced to take out money to invest in other things, be it more RE or stock or whatever. If you only take out a small amount that would keep your mortgage payment unchanged, you can use that cheap money to invest and still get the tax benefit. Obviously, this plan is not as lucrative if interest rate is high. But at 5-6%, after tax write off, your basic cost of borrowing this money is 3-4%. That’s relatively cheap compare to other way of leveraging.

[an]

If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.

I think if the goal is to maximize the ROI but still minimize risk, purchasing a property to live in is still a good idea. With a fixed interest rate, you’re guarantee that your “rent” will not increase. So, as you keep on paying down your mortgage, you have 2 options, one is to completely pay it off. At that time, you’ll have no more mortgage payment. The other option would be to periodically refinanced to take out money to invest in other things, be it more RE or stock or whatever. If you only take out a small amount that would keep your mortgage payment unchanged, you can use that cheap money to invest and still get the tax benefit. Obviously, this plan is not as lucrative if interest rate is high. But at 5-6%, after tax write off, your basic cost of borrowing this money is 3-4%. That’s relatively cheap compare to other way of leveraging.

[an]

If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.

I think if the goal is to maximize the ROI but still minimize risk, purchasing a property to live in is still a good idea. With a fixed interest rate, you’re guarantee that your “rent” will not increase. So, as you keep on paying down your mortgage, you have 2 options, one is to completely pay it off. At that time, you’ll have no more mortgage payment. The other option would be to periodically refinanced to take out money to invest in other things, be it more RE or stock or whatever. If you only take out a small amount that would keep your mortgage payment unchanged, you can use that cheap money to invest and still get the tax benefit. Obviously, this plan is not as lucrative if interest rate is high. But at 5-6%, after tax write off, your basic cost of borrowing this money is 3-4%. That’s relatively cheap compare to other way of leveraging.

[an]

If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.

I think if the goal is to maximize the ROI but still minimize risk, purchasing a property to live in is still a good idea. With a fixed interest rate, you’re guarantee that your “rent” will not increase. So, as you keep on paying down your mortgage, you have 2 options, one is to completely pay it off. At that time, you’ll have no more mortgage payment. The other option would be to periodically refinanced to take out money to invest in other things, be it more RE or stock or whatever. If you only take out a small amount that would keep your mortgage payment unchanged, you can use that cheap money to invest and still get the tax benefit. Obviously, this plan is not as lucrative if interest rate is high. But at 5-6%, after tax write off, your basic cost of borrowing this money is 3-4%. That’s relatively cheap compare to other way of leveraging.

[an]

If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.

I think if the goal is to maximize the ROI but still minimize risk, purchasing a property to live in is still a good idea. With a fixed interest rate, you’re guarantee that your “rent” will not increase. So, as you keep on paying down your mortgage, you have 2 options, one is to completely pay it off. At that time, you’ll have no more mortgage payment. The other option would be to periodically refinanced to take out money to invest in other things, be it more RE or stock or whatever. If you only take out a small amount that would keep your mortgage payment unchanged, you can use that cheap money to invest and still get the tax benefit. Obviously, this plan is not as lucrative if interest rate is high. But at 5-6%, after tax write off, your basic cost of borrowing this money is 3-4%. That’s relatively cheap compare to other way of leveraging.

[Ranjan]

Thanks for all the inputs.

SD R,

My loan requirements are within confirming limits.

HLS, I just sent an email to you.

Thanks

[Ranjan]

Thanks for all the inputs.

SD R,

My loan requirements are within confirming limits.

HLS, I just sent an email to you.

Thanks

[Ranjan]

Thanks for all the inputs.

SD R,

My loan requirements are within confirming limits.

HLS, I just sent an email to you.

Thanks

[Ranjan]

Thanks for all the inputs.

SD R,

My loan requirements are within confirming limits.

HLS, I just sent an email to you.

Thanks

[Author]

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