[Eugene]

Two reasons not to buy.

1. ARMs are nowhere near done resetting.
2. Mortgage rates are still at historic lows.

1. Housing market will go through two waves of foreclosures. First wave – subprime buyers and buyers with resetting ARM’s. REOs from the first wave drop market prices and prepare the market for the second wave – “investors” (speculators) and quite generally anyone who bought a house with zero down since 2004.
We’re not entirely through the first wave yet. When you start hearing about people returning keys to the bank simply because they are $100,000 upside down on their mortgage, you will know that it’s time to start looking for a house.

2. If you’re planning to retire and die in that house, (or at least to live there 10+ years) mortgage rates don’t matter. If you foresee a possibility that you will have to sell and move before 2012, it’s best for you to wait.

P.S. Just to show how much further Temecula can fall if conditions are right. Here’s a new 3br 2100 sq ft house, 25 miles from the downtown of 4st largest city in the United States, 30 miles from the nearest ocean beach. Look at the price.

http://www.lennar.com/findhome/plan.aspx?DIVID=HLSLEN&COMID=4980&PLANID=4150

[Eugene]

Two reasons not to buy.

1. ARMs are nowhere near done resetting.
2. Mortgage rates are still at historic lows.

1. Housing market will go through two waves of foreclosures. First wave – subprime buyers and buyers with resetting ARM’s. REOs from the first wave drop market prices and prepare the market for the second wave – “investors” (speculators) and quite generally anyone who bought a house with zero down since 2004.
We’re not entirely through the first wave yet. When you start hearing about people returning keys to the bank simply because they are $100,000 upside down on their mortgage, you will know that it’s time to start looking for a house.

2. If you’re planning to retire and die in that house, (or at least to live there 10+ years) mortgage rates don’t matter. If you foresee a possibility that you will have to sell and move before 2012, it’s best for you to wait.

P.S. Just to show how much further Temecula can fall if conditions are right. Here’s a new 3br 2100 sq ft house, 25 miles from the downtown of 4st largest city in the United States, 30 miles from the nearest ocean beach. Look at the price.

http://www.lennar.com/findhome/plan.aspx?DIVID=HLSLEN&COMID=4980&PLANID=4150

[Eugene]

Two reasons not to buy.

1. ARMs are nowhere near done resetting.
2. Mortgage rates are still at historic lows.

1. Housing market will go through two waves of foreclosures. First wave – subprime buyers and buyers with resetting ARM’s. REOs from the first wave drop market prices and prepare the market for the second wave – “investors” (speculators) and quite generally anyone who bought a house with zero down since 2004.
We’re not entirely through the first wave yet. When you start hearing about people returning keys to the bank simply because they are $100,000 upside down on their mortgage, you will know that it’s time to start looking for a house.

2. If you’re planning to retire and die in that house, (or at least to live there 10+ years) mortgage rates don’t matter. If you foresee a possibility that you will have to sell and move before 2012, it’s best for you to wait.

P.S. Just to show how much further Temecula can fall if conditions are right. Here’s a new 3br 2100 sq ft house, 25 miles from the downtown of 4st largest city in the United States, 30 miles from the nearest ocean beach. Look at the price.

http://www.lennar.com/findhome/plan.aspx?DIVID=HLSLEN&COMID=4980&PLANID=4150

[Eugene]

Two reasons not to buy.

1. ARMs are nowhere near done resetting.
2. Mortgage rates are still at historic lows.

1. Housing market will go through two waves of foreclosures. First wave – subprime buyers and buyers with resetting ARM’s. REOs from the first wave drop market prices and prepare the market for the second wave – “investors” (speculators) and quite generally anyone who bought a house with zero down since 2004.
We’re not entirely through the first wave yet. When you start hearing about people returning keys to the bank simply because they are $100,000 upside down on their mortgage, you will know that it’s time to start looking for a house.

2. If you’re planning to retire and die in that house, (or at least to live there 10+ years) mortgage rates don’t matter. If you foresee a possibility that you will have to sell and move before 2012, it’s best for you to wait.

P.S. Just to show how much further Temecula can fall if conditions are right. Here’s a new 3br 2100 sq ft house, 25 miles from the downtown of 4st largest city in the United States, 30 miles from the nearest ocean beach. Look at the price.

http://www.lennar.com/findhome/plan.aspx?DIVID=HLSLEN&COMID=4980&PLANID=4150

[Eugene]

First of all, I’m getting $247k qualifying income based on front debt-to-income ratio of 28%. I don’t see why someone with $200k in the bank would have 2k/month credit card payments.

Second of all, private lenders are not bound by 28%/36% DTI ratios, these only apply to government backed loans (which you won’t be getting anyway because your mortgage is above 417k). As far as I know, pre-credit crunch, lenders were often willing to make mortgages with DTI ratios as high as 45%. I’m not sure what the situation is today.

Finally, there are more rich folks than coastal houses around here. There are roughly 30k houses in the county north of 52 and west of 5. Compare with 100k families with liquid net worth above $1m and 50k families with gross annual incomes above 200k.

[Eugene]

First of all, I’m getting $247k qualifying income based on front debt-to-income ratio of 28%. I don’t see why someone with $200k in the bank would have 2k/month credit card payments.

Second of all, private lenders are not bound by 28%/36% DTI ratios, these only apply to government backed loans (which you won’t be getting anyway because your mortgage is above 417k). As far as I know, pre-credit crunch, lenders were often willing to make mortgages with DTI ratios as high as 45%. I’m not sure what the situation is today.

Finally, there are more rich folks than coastal houses around here. There are roughly 30k houses in the county north of 52 and west of 5. Compare with 100k families with liquid net worth above $1m and 50k families with gross annual incomes above 200k.

[Eugene]

First of all, I’m getting $247k qualifying income based on front debt-to-income ratio of 28%. I don’t see why someone with $200k in the bank would have 2k/month credit card payments.

Second of all, private lenders are not bound by 28%/36% DTI ratios, these only apply to government backed loans (which you won’t be getting anyway because your mortgage is above 417k). As far as I know, pre-credit crunch, lenders were often willing to make mortgages with DTI ratios as high as 45%. I’m not sure what the situation is today.

Finally, there are more rich folks than coastal houses around here. There are roughly 30k houses in the county north of 52 and west of 5. Compare with 100k families with liquid net worth above $1m and 50k families with gross annual incomes above 200k.

[Eugene]

First of all, I’m getting $247k qualifying income based on front debt-to-income ratio of 28%. I don’t see why someone with $200k in the bank would have 2k/month credit card payments.

Second of all, private lenders are not bound by 28%/36% DTI ratios, these only apply to government backed loans (which you won’t be getting anyway because your mortgage is above 417k). As far as I know, pre-credit crunch, lenders were often willing to make mortgages with DTI ratios as high as 45%. I’m not sure what the situation is today.

Finally, there are more rich folks than coastal houses around here. There are roughly 30k houses in the county north of 52 and west of 5. Compare with 100k families with liquid net worth above $1m and 50k families with gross annual incomes above 200k.

[Eugene]

It’s anything but a bi-partisan compromise. Not a single Republican voted for it. Even if it gets through the Senate, Bush will veto it and Democrats don’t have Republican support to override the veto.

[Eugene]

It’s anything but a bi-partisan compromise. Not a single Republican voted for it. Even if it gets through the Senate, Bush will veto it and Democrats don’t have Republican support to override the veto.

[Eugene]

It’s anything but a bi-partisan compromise. Not a single Republican voted for it. Even if it gets through the Senate, Bush will veto it and Democrats don’t have Republican support to override the veto.

[Eugene]

It’s anything but a bi-partisan compromise. Not a single Republican voted for it. Even if it gets through the Senate, Bush will veto it and Democrats don’t have Republican support to override the veto.

[Eugene]

Beemer will get 30-32 mpg freeway if you don’t drive it like you stole it.

My point is, gasoline is up a lot and food may be up a little bit but gasoline and food are small parts of a typical family budget. An average American family spends more on car loan & insurance payments than on food. You should average prices properly instead of focusing on a couple of low-importance items.

[Eugene]

Beemer will get 30-32 mpg freeway if you don’t drive it like you stole it.

My point is, gasoline is up a lot and food may be up a little bit but gasoline and food are small parts of a typical family budget. An average American family spends more on car loan & insurance payments than on food. You should average prices properly instead of focusing on a couple of low-importance items.

[Eugene]

Beemer will get 30-32 mpg freeway if you don’t drive it like you stole it.

My point is, gasoline is up a lot and food may be up a little bit but gasoline and food are small parts of a typical family budget. An average American family spends more on car loan & insurance payments than on food. You should average prices properly instead of focusing on a couple of low-importance items.

[Author]

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