The worlds best loan

[kev374]

a 40 yr loan doesn’t make any sense. The difference in payments between a 30yr and a 40yr isn’t all that much but an additional 10 years is a loonnnnnng time to continue making those payments. And do you want to keep paying a mortgage into retirement? Geez!

[the dingo]

Thanks for all the interesting feedback, constructive and vindictive. As we all know, no one loan is good for everybody. Yes, our payments are 2450, and with insurance, that is $3000 per month. We are right at the 90k limit, which still gives us heaps to live on, as we have zero debt.
Rentals in my neighborhood, La Costa are at 2100-2400 for the same model, so minus the tax, my loan is the same I would pay for rent.
The reason I liked the loan was that it gives me the security of the locked in rate, but I could easily refi at anytime once the market gets back to a more normal place. And to the comment, you can’t afford that loan. It is not the price, but the terms. 10 years is a long time away. This is not a three year ARM. Everyone is all negative to the interest only loans now, but they are still a great tool if used wisely. P.S. And where else can you get the whole loan on one mortgage without an outrageous 2nd in the 8%+ range

[the dingo]

Thanks for all the interesting feedback, constructive and vindictive. As we all know, no one loan is good for everybody. Yes, our payments are 2450, and with insurance, that is $3000 per month. We are right at the 90k limit, which still gives us heaps to live on, as we have zero debt.
Rentals in my neighborhood, La Costa are at 2100-2400 for the same model, so minus the tax, my loan is the same I would pay for rent.
The reason I liked the loan was that it gives me the security of the locked in rate, but I could easily refi at anytime once the market gets back to a more normal place. And to the comment, you can’t afford that loan. It is not the price, but the terms. 10 years is a long time away. This is not a three year ARM. Everyone is all negative to the interest only loans now, but they are still a great tool if used wisely. P.S. And where else can you get the whole loan on one mortgage without an outrageous 2nd in the 8%+ range

[the dingo]

Thanks for all the interesting feedback, constructive and vindictive. As we all know, no one loan is good for everybody. Yes, our payments are 2450, and with insurance, that is $3000 per month. We are right at the 90k limit, which still gives us heaps to live on, as we have zero debt.
Rentals in my neighborhood, La Costa are at 2100-2400 for the same model, so minus the tax, my loan is the same I would pay for rent.
The reason I liked the loan was that it gives me the security of the locked in rate, but I could easily refi at anytime once the market gets back to a more normal place. And to the comment, you can’t afford that loan. It is not the price, but the terms. 10 years is a long time away. This is not a three year ARM. Everyone is all negative to the interest only loans now, but they are still a great tool if used wisely. P.S. And where else can you get the whole loan on one mortgage without an outrageous 2nd in the 8%+ range

[the dingo]

According to the classes I attended, this loan was put in place by the fed in the 70’s so that banks could not do a practice called “redlining” see http://en.wikipedia.org/wiki/Redlining which in a nutshell means offering low income areas credit for high interest cards, but not credit for things like home loans and cars. Acorn was set up as a social justice organization, and when I went to the classes, I felt like I was at the democratic national convention. Pictures of Ceasar Chavez and others..
When BofA did their presentation at the class, they said that they get credits for doing these loans, and that they would not do them if the Govt. did not limit their growth ability without a certain amount of credits they get from financing a certain number of these. Thus, it is the “lost loser” car dealership pricipal where they lose money, so they can make money.
The loophole has come from the fact that immigrant workers live all over San Diego. Thus, since my area, Encinitas/ Carlsbad if full of low income workers, we qualify as an area for this loan. Since they can’t discriminate because I am white, I have gotten a loan previously unavailable.
You might ask, why would poor people need a loan of 500k? Basically, that is another loophole. The max income ratio of 90k and loan amounts of 500k are based on mathmatical equations that take in the areas medium home value and income level.
One more thing, 50% of the class was caucasian and there were at least 100 people in the class. This showed me that lots of people even back in July wanted in the market. I did not make the system, I only used it.

[the dingo]

According to the classes I attended, this loan was put in place by the fed in the 70’s so that banks could not do a practice called “redlining” see http://en.wikipedia.org/wiki/Redlining which in a nutshell means offering low income areas credit for high interest cards, but not credit for things like home loans and cars. Acorn was set up as a social justice organization, and when I went to the classes, I felt like I was at the democratic national convention. Pictures of Ceasar Chavez and others..
When BofA did their presentation at the class, they said that they get credits for doing these loans, and that they would not do them if the Govt. did not limit their growth ability without a certain amount of credits they get from financing a certain number of these. Thus, it is the “lost loser” car dealership pricipal where they lose money, so they can make money.
The loophole has come from the fact that immigrant workers live all over San Diego. Thus, since my area, Encinitas/ Carlsbad if full of low income workers, we qualify as an area for this loan. Since they can’t discriminate because I am white, I have gotten a loan previously unavailable.
You might ask, why would poor people need a loan of 500k? Basically, that is another loophole. The max income ratio of 90k and loan amounts of 500k are based on mathmatical equations that take in the areas medium home value and income level.
One more thing, 50% of the class was caucasian and there were at least 100 people in the class. This showed me that lots of people even back in July wanted in the market. I did not make the system, I only used it.

[the dingo]

According to the classes I attended, this loan was put in place by the fed in the 70’s so that banks could not do a practice called “redlining” see http://en.wikipedia.org/wiki/Redlining which in a nutshell means offering low income areas credit for high interest cards, but not credit for things like home loans and cars. Acorn was set up as a social justice organization, and when I went to the classes, I felt like I was at the democratic national convention. Pictures of Ceasar Chavez and others..
When BofA did their presentation at the class, they said that they get credits for doing these loans, and that they would not do them if the Govt. did not limit their growth ability without a certain amount of credits they get from financing a certain number of these. Thus, it is the “lost loser” car dealership pricipal where they lose money, so they can make money.
The loophole has come from the fact that immigrant workers live all over San Diego. Thus, since my area, Encinitas/ Carlsbad if full of low income workers, we qualify as an area for this loan. Since they can’t discriminate because I am white, I have gotten a loan previously unavailable.
You might ask, why would poor people need a loan of 500k? Basically, that is another loophole. The max income ratio of 90k and loan amounts of 500k are based on mathmatical equations that take in the areas medium home value and income level.
One more thing, 50% of the class was caucasian and there were at least 100 people in the class. This showed me that lots of people even back in July wanted in the market. I did not make the system, I only used it.

[Raybyrnes]

kev374
10 year is a loooooooooooong time. Long time to wait to get started saving in a Roth IRA aswell. Run the numbers on starting a Roth IRA at the age of 25 vs waiting until you are 35. A little bit now goes a long way later. Think you are sort of missing this. Additionally time value of money say that a payment in 40 year will be equivalent to a car payment today. Money has a declining value. Just giving you the facts. You can play aroudn wiht the calculations.

[Raybyrnes]

kev374
10 year is a loooooooooooong time. Long time to wait to get started saving in a Roth IRA aswell. Run the numbers on starting a Roth IRA at the age of 25 vs waiting until you are 35. A little bit now goes a long way later. Think you are sort of missing this. Additionally time value of money say that a payment in 40 year will be equivalent to a car payment today. Money has a declining value. Just giving you the facts. You can play aroudn wiht the calculations.

[Raybyrnes]

kev374
10 year is a loooooooooooong time. Long time to wait to get started saving in a Roth IRA aswell. Run the numbers on starting a Roth IRA at the age of 25 vs waiting until you are 35. A little bit now goes a long way later. Think you are sort of missing this. Additionally time value of money say that a payment in 40 year will be equivalent to a car payment today. Money has a declining value. Just giving you the facts. You can play aroudn wiht the calculations.

[patientrenter]

We all agree that it’s a “good” loan, in the sense that you’re paying less than it’s worth. Who is subsidizing you to keep real estate prices high? I’ll bet the money didn’t all come from the NAR.

Sorry to be so blunt. You’re probably a nice person to talk with, but you’re taking advantage of a system that doubly screws taxpayers who pay bucketloads of tax to pay for crackpot schemes like this, and who refuse to abandon financial responsibility to overpay for their own home. As a result, these responsible taxpayers are priced out themselves.

Patient renter in OC

[patientrenter]

We all agree that it’s a “good” loan, in the sense that you’re paying less than it’s worth. Who is subsidizing you to keep real estate prices high? I’ll bet the money didn’t all come from the NAR.

Sorry to be so blunt. You’re probably a nice person to talk with, but you’re taking advantage of a system that doubly screws taxpayers who pay bucketloads of tax to pay for crackpot schemes like this, and who refuse to abandon financial responsibility to overpay for their own home. As a result, these responsible taxpayers are priced out themselves.

Patient renter in OC

[patientrenter]

We all agree that it’s a “good” loan, in the sense that you’re paying less than it’s worth. Who is subsidizing you to keep real estate prices high? I’ll bet the money didn’t all come from the NAR.

Sorry to be so blunt. You’re probably a nice person to talk with, but you’re taking advantage of a system that doubly screws taxpayers who pay bucketloads of tax to pay for crackpot schemes like this, and who refuse to abandon financial responsibility to overpay for their own home. As a result, these responsible taxpayers are priced out themselves.

Patient renter in OC

[the dingo]

Patientrenter,
First of all you are right, I am a nice person to talk to, but to be blunt, capitalism is built on getting an advantage in the system. It’s legal and it is available.
I’m not sure how me getting this loan is taking advantage of people or screwing taxpayers? Also, “overpaying” is a odd comment. Once again capitalism says that something is worth what one will pay.
And I don’t feel a loan with a 40 year track record which has allowed many low and medium income families to afford homes, which by the way would always be unaffordable for these people is a bad “crackpot scheme”. I also have a feeling if you met the criteria, you would jump on it also.

[the dingo]

Patientrenter,
First of all you are right, I am a nice person to talk to, but to be blunt, capitalism is built on getting an advantage in the system. It’s legal and it is available.
I’m not sure how me getting this loan is taking advantage of people or screwing taxpayers? Also, “overpaying” is a odd comment. Once again capitalism says that something is worth what one will pay.
And I don’t feel a loan with a 40 year track record which has allowed many low and medium income families to afford homes, which by the way would always be unaffordable for these people is a bad “crackpot scheme”. I also have a feeling if you met the criteria, you would jump on it also.

[Author]

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