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August 13, 2007 at 2:47 PM in reply to: Oh my… Countrywide just set new rates (effective tomorrow)… #74553August 13, 2007 at 2:47 PM in reply to: Oh my… Countrywide just set new rates (effective tomorrow)… #74670
DaCounselor
Participant“Among others, 7.9% for a full-doc 5/25 ARM with 20% down and a 700 FICO. Ouch. That’s gonna leave a mark.”
_______________________________“CFC Rates, not as high as quoted…
Maybe you guys are seeing the broker numbers, but we were locked into a 60 day jumbo today and the rate was 6.5% 30 year fixed (paid 1.5 points).
Before we finished locking, the rep told us it is better to come directly to the lender and not use brokers as their fees are astronomical. If anyone calls today with a credit score over 700 (as I’m assuming is the case among most of this financially savvy group), there is no way your rate should be as high as what’s being quoted here.”
_________________________Anyone else have any input regarding this rather large discrepancy in rates?
August 13, 2007 at 2:47 PM in reply to: Oh my… Countrywide just set new rates (effective tomorrow)… #74675Participant“Among others, 7.9% for a full-doc 5/25 ARM with 20% down and a 700 FICO. Ouch. That’s gonna leave a mark.”
_______________________________“CFC Rates, not as high as quoted…
Maybe you guys are seeing the broker numbers, but we were locked into a 60 day jumbo today and the rate was 6.5% 30 year fixed (paid 1.5 points).
Before we finished locking, the rep told us it is better to come directly to the lender and not use brokers as their fees are astronomical. If anyone calls today with a credit score over 700 (as I’m assuming is the case among most of this financially savvy group), there is no way your rate should be as high as what’s being quoted here.”
_________________________Anyone else have any input regarding this rather large discrepancy in rates?
Participant1) They will not owe any tax on the shortfall if the lender forecloses and sells the property for less than what is owed.
2) The best play would be to get themselves into a cheap rental and knock out the CC debt as opposed to going BK. Ironically, they could probably knock out a nice chunk of that debt by stopping all housing payments and sending that $$ to Visa…
3) This type of scenario should increase as more loans are re-cast and property values continue to fall. At some point in time, if values fall enough, I would expect that even folks who can afford the re-cast may walk away if the disparity between ownership and renting is large enough to convince them to crash their credit.
Participant1) They will not owe any tax on the shortfall if the lender forecloses and sells the property for less than what is owed.
2) The best play would be to get themselves into a cheap rental and knock out the CC debt as opposed to going BK. Ironically, they could probably knock out a nice chunk of that debt by stopping all housing payments and sending that $$ to Visa…
3) This type of scenario should increase as more loans are re-cast and property values continue to fall. At some point in time, if values fall enough, I would expect that even folks who can afford the re-cast may walk away if the disparity between ownership and renting is large enough to convince them to crash their credit.
Participant1) They will not owe any tax on the shortfall if the lender forecloses and sells the property for less than what is owed.
2) The best play would be to get themselves into a cheap rental and knock out the CC debt as opposed to going BK. Ironically, they could probably knock out a nice chunk of that debt by stopping all housing payments and sending that $$ to Visa…
3) This type of scenario should increase as more loans are re-cast and property values continue to fall. At some point in time, if values fall enough, I would expect that even folks who can afford the re-cast may walk away if the disparity between ownership and renting is large enough to convince them to crash their credit.
ParticipantRegarding construction expenses, my clients in the industry routinely inform me that overall costs continue to rise. You just can’t cite falling gypsum prices and call it a day. My understanding is that material prices in many categories are up, including roofing, siding, glazing, doors, structural steel and pre-cast concrete. In addition, I have been told that labor costs are up. Further, I am on the receiving end of the occassional rant regarding outlandish insurance premiums.
Where costs may go in the future is speculative, but my sources assure me that overall costs to date are not going down. Any recent decreases in specific line-item costs must also be viewed within the context of what has happened over the past 3 years in that category; ie, beginning in about 2004 material costs in many categories increased dramatically. Perhaps radelow can provide additional input regarding costs.
ParticipantRegarding construction expenses, my clients in the industry routinely inform me that overall costs continue to rise. You just can’t cite falling gypsum prices and call it a day. My understanding is that material prices in many categories are up, including roofing, siding, glazing, doors, structural steel and pre-cast concrete. In addition, I have been told that labor costs are up. Further, I am on the receiving end of the occassional rant regarding outlandish insurance premiums.
Where costs may go in the future is speculative, but my sources assure me that overall costs to date are not going down. Any recent decreases in specific line-item costs must also be viewed within the context of what has happened over the past 3 years in that category; ie, beginning in about 2004 material costs in many categories increased dramatically. Perhaps radelow can provide additional input regarding costs.
ParticipantRegarding construction expenses, my clients in the industry routinely inform me that overall costs continue to rise. You just can’t cite falling gypsum prices and call it a day. My understanding is that material prices in many categories are up, including roofing, siding, glazing, doors, structural steel and pre-cast concrete. In addition, I have been told that labor costs are up. Further, I am on the receiving end of the occassional rant regarding outlandish insurance premiums.
Where costs may go in the future is speculative, but my sources assure me that overall costs to date are not going down. Any recent decreases in specific line-item costs must also be viewed within the context of what has happened over the past 3 years in that category; ie, beginning in about 2004 material costs in many categories increased dramatically. Perhaps radelow can provide additional input regarding costs.
ParticipantDoes FM’s guidelines for purchase take into account what is happening behind the loan they are purchasing (aka 2nd position)? I’m guessing that FM can buy a $417K first mtg. that is part of an 80/20 deal (to the extent that 80/20’s are going to be made) and that will be conforming even with a $104K second mtg. sitting behind it, for a total loan of $521K.
ParticipantDoes FM’s guidelines for purchase take into account what is happening behind the loan they are purchasing (aka 2nd position)? I’m guessing that FM can buy a $417K first mtg. that is part of an 80/20 deal (to the extent that 80/20’s are going to be made) and that will be conforming even with a $104K second mtg. sitting behind it, for a total loan of $521K.
ParticipantHmmm…so much for satire and sarcasm. Cramer certainly looks less crazed in the latest clip as well.
ParticipantHmmm…so much for satire and sarcasm. Cramer certainly looks less crazed in the latest clip as well.
ParticipantI have to agree with Ozzie and LArenter. The three words that first come to mind after listening to the clip are “hyperbole”, “satire” and “sarcasm”.
Nevertheless, as LArenter points out, it is eerie because of the level of truths contained therein.
ParticipantI have to agree with Ozzie and LArenter. The three words that first come to mind after listening to the clip are “hyperbole”, “satire” and “sarcasm”.
Nevertheless, as LArenter points out, it is eerie because of the level of truths contained therein.
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