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Arraya
ParticipantThe few that they locked in over the past few months all want out. I’m sure it will kill the condo market being that it will be a 1/4 of it…
ParticipantThese are some of the areas that I monitor as well. A few indicators that I watch are # of sfrs under 400K in 92104 and # under 500K in 92103. Both of which have skyrocketed in the past 3 months.
Also, the condos in 92103 inventory is thru the roof. There is probably 70 or so new units just sitting empty and another 187 coming by september over at Atlas. The condo situation is beginning to resemble downtown’s. Looks to be 15+ months supply and rising if they actually listed everything availble.
It’s definately coming…
ParticipantThese are some of the areas that I monitor as well. A few indicators that I watch are # of sfrs under 400K in 92104 and # under 500K in 92103. Both of which have skyrocketed in the past 3 months.
Also, the condos in 92103 inventory is thru the roof. There is probably 70 or so new units just sitting empty and another 187 coming by september over at Atlas. The condo situation is beginning to resemble downtown’s. Looks to be 15+ months supply and rising if they actually listed everything availble.
It’s definately coming…
Participantbean,
I agree, there has been a serious disconnect from common sense in the lending industry for a long time and now it seems to be over correcting in the opposite direction leaving many quailified borrowers in the dust.
As you stated in the long term they should find a comfortable medium…IMO
Participantbean,
I agree, there has been a serious disconnect from common sense in the lending industry for a long time and now it seems to be over correcting in the opposite direction leaving many quailified borrowers in the dust.
As you stated in the long term they should find a comfortable medium…IMO
ParticipantRE: “Why mortgage brokers push I/O loans”
I think the answer is simple.
I/O is what the customer chooses the vast majority of the time. When a salesman relizes what his big seller is he pushes it.
Granted most people selling these products have no knowledge of them beside what products sell but that is another discussion.
Also, the reason lenders are pushing conforming loans is because they do not know if anything else will sell on the secondary market and do not want to get stuck with a loan. So the incentive is to stay in business.
ParticipantRE: “Why mortgage brokers push I/O loans”
I think the answer is simple.
I/O is what the customer chooses the vast majority of the time. When a salesman relizes what his big seller is he pushes it.
Granted most people selling these products have no knowledge of them beside what products sell but that is another discussion.
Also, the reason lenders are pushing conforming loans is because they do not know if anything else will sell on the secondary market and do not want to get stuck with a loan. So the incentive is to stay in business.
ParticipantMortgage selection is a balance of short term comfort and long term financial goals.
Everybody is different hence the vast array of mortgage options.
Unfortunately many people misuse the lower cost options for excessive consumption…
Whattaya gonna do?
ParticipantMortgage selection is a balance of short term comfort and long term financial goals.
Everybody is different hence the vast array of mortgage options.
Unfortunately many people misuse the lower cost options for excessive consumption…
Whattaya gonna do?
ParticipantPasadena,
There is a bigger difference than just monthly payment on an arm vs 30yr fix. You will have to deal with the adjustment and prossibly will not be able to refinance out of it in the given time frame depending on what you put down. An adjusment on a 700/800K loan is well over 1K.
Also, I think advice from people that do not have a financial interest in your decison is not a bad idea… Don’t ya think?
ParticipantPasadena,
There is a bigger difference than just monthly payment on an arm vs 30yr fix. You will have to deal with the adjustment and prossibly will not be able to refinance out of it in the given time frame depending on what you put down. An adjusment on a 700/800K loan is well over 1K.
Also, I think advice from people that do not have a financial interest in your decison is not a bad idea… Don’t ya think?
ParticipantI am not going to argue that you should have money in the bank for a cushion. Of course you should that is kind of a no brainer.
However, if you have to rely on not paying principle to have that cushion you should NOT go into a mortgage that big. You can’t argue that.
How is that archaic?
ParticipantI am not going to argue that you should have money in the bank for a cushion. Of course you should that is kind of a no brainer.
However, if you have to rely on not paying principle to have that cushion you should NOT go into a mortgage that big. You can’t argue that.
How is that archaic?
ParticipantThat is true HLS, DEPENDING on your overall financial situation. However its very hard to justify an I/O arm in a down market on a purchase.
One justification is a definate income improvement or a large some of money coming you way.
The only other justification could be using the money that you would normally put down on principle and putting it into a very very safe investment that returns yields that are greater than the interest paid on the loan.
How likely are they?
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