Forum Replies Created
-
AuthorPosts
-
(former)FormerSanDiegan
ParticipantSometimes a smallish, e.g. 1/2 point, increase in rates can create a sense of urgency to buy now versus later (short-term phenomenon)
May 27, 2009 at 9:59 AM in reply to: Stupid refinance rule: Must live within 100 miles from property! #406221Participant[quote=PadreBrian]I love these new rules. We needed that back in 2003![/quote]
Some of the new guidelines make sense. This one
does not.Seems like other factors are more important:
Income (rent) from the property.
Income (wage,other investment) of the owner.
Value of the propertyHow much more downpayment should be required per mile distance from the property ?
I am guessing that the particular lender is using this as an excuse because they have plenty of other more qualified borrowers that meet their real guidelines for the funds they plan on committing to real estate loans. And that this person meets all the objective criteria, but not by the same margin as the pool of borrowers they are lending to.
May 27, 2009 at 9:59 AM in reply to: Stupid refinance rule: Must live within 100 miles from property! #406464Participant[quote=PadreBrian]I love these new rules. We needed that back in 2003![/quote]
Some of the new guidelines make sense. This one
does not.Seems like other factors are more important:
Income (rent) from the property.
Income (wage,other investment) of the owner.
Value of the propertyHow much more downpayment should be required per mile distance from the property ?
I am guessing that the particular lender is using this as an excuse because they have plenty of other more qualified borrowers that meet their real guidelines for the funds they plan on committing to real estate loans. And that this person meets all the objective criteria, but not by the same margin as the pool of borrowers they are lending to.
May 27, 2009 at 9:59 AM in reply to: Stupid refinance rule: Must live within 100 miles from property! #406707Participant[quote=PadreBrian]I love these new rules. We needed that back in 2003![/quote]
Some of the new guidelines make sense. This one
does not.Seems like other factors are more important:
Income (rent) from the property.
Income (wage,other investment) of the owner.
Value of the propertyHow much more downpayment should be required per mile distance from the property ?
I am guessing that the particular lender is using this as an excuse because they have plenty of other more qualified borrowers that meet their real guidelines for the funds they plan on committing to real estate loans. And that this person meets all the objective criteria, but not by the same margin as the pool of borrowers they are lending to.
May 27, 2009 at 9:59 AM in reply to: Stupid refinance rule: Must live within 100 miles from property! #406770Participant[quote=PadreBrian]I love these new rules. We needed that back in 2003![/quote]
Some of the new guidelines make sense. This one
does not.Seems like other factors are more important:
Income (rent) from the property.
Income (wage,other investment) of the owner.
Value of the propertyHow much more downpayment should be required per mile distance from the property ?
I am guessing that the particular lender is using this as an excuse because they have plenty of other more qualified borrowers that meet their real guidelines for the funds they plan on committing to real estate loans. And that this person meets all the objective criteria, but not by the same margin as the pool of borrowers they are lending to.
May 27, 2009 at 9:59 AM in reply to: Stupid refinance rule: Must live within 100 miles from property! #406916Participant[quote=PadreBrian]I love these new rules. We needed that back in 2003![/quote]
Some of the new guidelines make sense. This one
does not.Seems like other factors are more important:
Income (rent) from the property.
Income (wage,other investment) of the owner.
Value of the propertyHow much more downpayment should be required per mile distance from the property ?
I am guessing that the particular lender is using this as an excuse because they have plenty of other more qualified borrowers that meet their real guidelines for the funds they plan on committing to real estate loans. And that this person meets all the objective criteria, but not by the same margin as the pool of borrowers they are lending to.
Participant[quote=peterb]
There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]
I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.
Participant[quote=peterb]
There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]
I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.
Participant[quote=peterb]
There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]
I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.
Participant[quote=peterb]
There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]
I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.
Participant[quote=peterb]
There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.[/quote]
I beg to differ on the point that the money is not making it’s way into the economy. Both the broad money supply and M2 have increased by 10%. While this is much lower than the 100% increase in monetary base, it is not insignificant.
Yes there is a huge potential money supply that has not been released into the economy, but the part that has been released is significant.It’s like the cow that has eaten 60 pounds of alfalfa and produced a 5-pound cow pie. Sure the cow pie is small with respect to the 60 pounds of alfalfa. But when you step in it, it sure doesn’t seem insignificant, it’s still 5 pounds of shit you have to scrape from your boots.
May 27, 2009 at 8:14 AM in reply to: What is the advantage of buying down your interest rate? #406170ParticipantI would look at it this way.
How much is the buy down costing you ?
e.g. $2000What is your return ?
e.g. $60 per month reduction in paymentCan you do better elsewhere with your $2000 investment ?
May 27, 2009 at 8:14 AM in reply to: What is the advantage of buying down your interest rate? #406414ParticipantI would look at it this way.
How much is the buy down costing you ?
e.g. $2000What is your return ?
e.g. $60 per month reduction in paymentCan you do better elsewhere with your $2000 investment ?
May 27, 2009 at 8:14 AM in reply to: What is the advantage of buying down your interest rate? #406657ParticipantI would look at it this way.
How much is the buy down costing you ?
e.g. $2000What is your return ?
e.g. $60 per month reduction in paymentCan you do better elsewhere with your $2000 investment ?
-
AuthorPosts
