[cv2]

I like the scenario that Clinton/Obama ticket with Clinton promise to be one-term president.

Obama is too young and untested for a leader at a critical time of the nation. He can talk the talk but I am not sure if he can walk the walk. Give him four more years to be in the spotlight and we will know for sure.

[cv2]

I like the scenario that Clinton/Obama ticket with Clinton promise to be one-term president.

Obama is too young and untested for a leader at a critical time of the nation. He can talk the talk but I am not sure if he can walk the walk. Give him four more years to be in the spotlight and we will know for sure.

[cv2]

Thanks HLS. I will count my blessings at 7% 🙂

What happened to me is that when I refied 5 years ago, my broker gave me a 7% rate, 1.5% above owner-occupied. However, two years after closing, when I called the lender I found out that my loan was marked as owner-occupied. So the broker made tons of money on this loan. Yet I can’t do much about it.

HLS, with your crystal ball, would you think that rate will rack up quickly? On one hand, with the economy in a slow down/recession, Fed wants to keep interest rate low to stimulate. On the other hand, inflation is rampant and they have no choice but to raise interest rate. Right now they put the economy concern over inflation but for how long?

[cv2]

Thanks HLS. I will count my blessings at 7% 🙂

What happened to me is that when I refied 5 years ago, my broker gave me a 7% rate, 1.5% above owner-occupied. However, two years after closing, when I called the lender I found out that my loan was marked as owner-occupied. So the broker made tons of money on this loan. Yet I can’t do much about it.

HLS, with your crystal ball, would you think that rate will rack up quickly? On one hand, with the economy in a slow down/recession, Fed wants to keep interest rate low to stimulate. On the other hand, inflation is rampant and they have no choice but to raise interest rate. Right now they put the economy concern over inflation but for how long?

[cv2]

Thanks HLS. I will count my blessings at 7% 🙂

What happened to me is that when I refied 5 years ago, my broker gave me a 7% rate, 1.5% above owner-occupied. However, two years after closing, when I called the lender I found out that my loan was marked as owner-occupied. So the broker made tons of money on this loan. Yet I can’t do much about it.

HLS, with your crystal ball, would you think that rate will rack up quickly? On one hand, with the economy in a slow down/recession, Fed wants to keep interest rate low to stimulate. On the other hand, inflation is rampant and they have no choice but to raise interest rate. Right now they put the economy concern over inflation but for how long?

[cv2]

Thanks HLS. I will count my blessings at 7% 🙂

What happened to me is that when I refied 5 years ago, my broker gave me a 7% rate, 1.5% above owner-occupied. However, two years after closing, when I called the lender I found out that my loan was marked as owner-occupied. So the broker made tons of money on this loan. Yet I can’t do much about it.

HLS, with your crystal ball, would you think that rate will rack up quickly? On one hand, with the economy in a slow down/recession, Fed wants to keep interest rate low to stimulate. On the other hand, inflation is rampant and they have no choice but to raise interest rate. Right now they put the economy concern over inflation but for how long?

[cv2]

Thanks HLS. I will count my blessings at 7% 🙂

What happened to me is that when I refied 5 years ago, my broker gave me a 7% rate, 1.5% above owner-occupied. However, two years after closing, when I called the lender I found out that my loan was marked as owner-occupied. So the broker made tons of money on this loan. Yet I can’t do much about it.

HLS, with your crystal ball, would you think that rate will rack up quickly? On one hand, with the economy in a slow down/recession, Fed wants to keep interest rate low to stimulate. On the other hand, inflation is rampant and they have no choice but to raise interest rate. Right now they put the economy concern over inflation but for how long?

[cv2]

Thanks, HLS.

So Fannie is quite “conservative” with LTV below 80% (95% with PMI), conforming loan and 620 FICO. Even with this relatively strict qualification, Fannie still lost $2B. I was surprised that nobody were talking about what this means for home prices.

I see two problems and none is good for future home prices.
1. The loss is substantial. with 20% cushion, Fannie still lost $2B. It means that home prices have dropped at least 20% nationally.
2. Fannie won’t be able to make more loans because of the losses. Congress may pressure it to make more loans to boost the housing market.

[cv2]

Thanks, HLS.

So Fannie is quite “conservative” with LTV below 80% (95% with PMI), conforming loan and 620 FICO. Even with this relatively strict qualification, Fannie still lost $2B. I was surprised that nobody were talking about what this means for home prices.

I see two problems and none is good for future home prices.
1. The loss is substantial. with 20% cushion, Fannie still lost $2B. It means that home prices have dropped at least 20% nationally.
2. Fannie won’t be able to make more loans because of the losses. Congress may pressure it to make more loans to boost the housing market.

[cv2]

Thanks, HLS.

So Fannie is quite “conservative” with LTV below 80% (95% with PMI), conforming loan and 620 FICO. Even with this relatively strict qualification, Fannie still lost $2B. I was surprised that nobody were talking about what this means for home prices.

I see two problems and none is good for future home prices.
1. The loss is substantial. with 20% cushion, Fannie still lost $2B. It means that home prices have dropped at least 20% nationally.
2. Fannie won’t be able to make more loans because of the losses. Congress may pressure it to make more loans to boost the housing market.

[cv2]

Thanks, HLS.

So Fannie is quite “conservative” with LTV below 80% (95% with PMI), conforming loan and 620 FICO. Even with this relatively strict qualification, Fannie still lost $2B. I was surprised that nobody were talking about what this means for home prices.

I see two problems and none is good for future home prices.
1. The loss is substantial. with 20% cushion, Fannie still lost $2B. It means that home prices have dropped at least 20% nationally.
2. Fannie won’t be able to make more loans because of the losses. Congress may pressure it to make more loans to boost the housing market.

[cv2]

Thanks, HLS.

So Fannie is quite “conservative” with LTV below 80% (95% with PMI), conforming loan and 620 FICO. Even with this relatively strict qualification, Fannie still lost $2B. I was surprised that nobody were talking about what this means for home prices.

I see two problems and none is good for future home prices.
1. The loss is substantial. with 20% cushion, Fannie still lost $2B. It means that home prices have dropped at least 20% nationally.
2. Fannie won’t be able to make more loans because of the losses. Congress may pressure it to make more loans to boost the housing market.

[cv2]

Thanks, HLS.

I totally agree with you. It is just emotionally painful to pay 7% while everybody else is paying less than 6%.

I figured that at 25 basis points per raise, it will take them 8 meetings to raise rates from 2% now to 4% and they have 6 meetings a year. This will give me one year and 4 months. Also I think they can’t start raising rates until after the election. So I am safe for at least two years.

One big question is tax. Before I can deduct the interest against the rents. Now I have to pay income on rents and deduct mortgage interest on the primary resident house. Is this a smart move on the tax front?

[cv2]

Thanks, HLS.

I totally agree with you. It is just emotionally painful to pay 7% while everybody else is paying less than 6%.

I figured that at 25 basis points per raise, it will take them 8 meetings to raise rates from 2% now to 4% and they have 6 meetings a year. This will give me one year and 4 months. Also I think they can’t start raising rates until after the election. So I am safe for at least two years.

One big question is tax. Before I can deduct the interest against the rents. Now I have to pay income on rents and deduct mortgage interest on the primary resident house. Is this a smart move on the tax front?

[cv2]

Thanks, HLS.

I totally agree with you. It is just emotionally painful to pay 7% while everybody else is paying less than 6%.

I figured that at 25 basis points per raise, it will take them 8 meetings to raise rates from 2% now to 4% and they have 6 meetings a year. This will give me one year and 4 months. Also I think they can’t start raising rates until after the election. So I am safe for at least two years.

One big question is tax. Before I can deduct the interest against the rents. Now I have to pay income on rents and deduct mortgage interest on the primary resident house. Is this a smart move on the tax front?

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