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  • June 17, 2014 at 6:59 AM #775261
    spdrun
    Participant

    Not necessarily. If rates go up and prices go down, solution would be to make fixed-rate loans assumable. So that people could “sell” their homes by transferring the note vs going through the process of short sale or foreclosure.

    June 17, 2014 at 7:06 AM #775262
    The-Shoveler
    Participant

    There are a lot of reasons NOT to sell your home using your assumable loan but even if you did.

    You the buyer want to take on more debt than the home is worth ?

    Falling asset prices in general lead to failing economy.

    June 17, 2014 at 7:21 AM #775263
    spdrun
    Participant

    If the monthly nut is lower (function of loan rate and balance) than you can pay at current prevailing home prices and rates for new loans, some buyers will do it, with the assumption that prices will rise again eventually or that it will pencil out as a rental. It was quite common in the 80s, and the only way some people could buy with rates being in double digits.

    June 17, 2014 at 7:30 AM #775264
    The-Shoveler
    Participant

    in the 80’s you had rising prices as well as rates.

    We may see something similar in the future but probably not near as high rates.

    But I myself would resist using my assumable loan if I could.

    June 17, 2014 at 1:09 PM #775277
    HLS
    Participant

    Articles like this one that are printed every day are just silly.
    The writers are repeating govt propaganda.
    Opinions are expressed as facts, details are misleading, individuals are mentioned to support their idiotic claims, and the worst part is that people believe and quote the misinformation as though it is verified.

    There was a huge refi boom through May 2013, but I do not believe that the majority of fixed loans today are sub 4%.
    Only a small % of savvy people played the game of multiple refi’s all the way down.

    Adjectives used in all articles are subjective & opinions
    “Soaring, tight, potential, undermining” etc

    What is the definition of ‘housing recovery’ ?
    Back to the highs of subprime & no doc loans??
    the houses were never really worth those levels, it was only the easy financing that pushed prices.
    Most people are delusional about housing, including experts & policy makers.
    It’s pathetic & sickening.

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