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(former)FormerSanDiegan
Participantpeterb – I believe the government understates inflation. However, I find it equally hard to believe the shadowstats GDP estimates that cumulative GDP growth has essentially been 0% from 1986 to 2008.
ParticipantTo use the FHA bailout his new appraisal would have to come in at 775K or less (for a 697K FHA limit loan).
A new loan would be at least 6.5%, plus the 1.5% annual fee and 50% of future appreciation. He’s better off keeping the ultra-low 4.375% loan for the next 4 years. What a deal !
I wouldn;t characterize this guys situation as being screwed. fact, I think he’s in an excellent position. He apparently has a million in assets outside his property. Plus he has a 4.375% loan for the next 4 years. 3700 bucks per month interest, plus taxes and insurance, so maybe $4800 per month or so. In 40% combined tax bracket, after taxes it’s probably $3100 per month. Maybe cheaper than renting. Plus, since it’s a purchase loan he has no additional downside risk of loss beyond whatever down payment he made.
I don’t think this guy should be losing any sleep. He’s not screwed at all.
ParticipantTo use the FHA bailout his new appraisal would have to come in at 775K or less (for a 697K FHA limit loan).
A new loan would be at least 6.5%, plus the 1.5% annual fee and 50% of future appreciation. He’s better off keeping the ultra-low 4.375% loan for the next 4 years. What a deal !
I wouldn;t characterize this guys situation as being screwed. fact, I think he’s in an excellent position. He apparently has a million in assets outside his property. Plus he has a 4.375% loan for the next 4 years. 3700 bucks per month interest, plus taxes and insurance, so maybe $4800 per month or so. In 40% combined tax bracket, after taxes it’s probably $3100 per month. Maybe cheaper than renting. Plus, since it’s a purchase loan he has no additional downside risk of loss beyond whatever down payment he made.
I don’t think this guy should be losing any sleep. He’s not screwed at all.
ParticipantTo use the FHA bailout his new appraisal would have to come in at 775K or less (for a 697K FHA limit loan).
A new loan would be at least 6.5%, plus the 1.5% annual fee and 50% of future appreciation. He’s better off keeping the ultra-low 4.375% loan for the next 4 years. What a deal !
I wouldn;t characterize this guys situation as being screwed. fact, I think he’s in an excellent position. He apparently has a million in assets outside his property. Plus he has a 4.375% loan for the next 4 years. 3700 bucks per month interest, plus taxes and insurance, so maybe $4800 per month or so. In 40% combined tax bracket, after taxes it’s probably $3100 per month. Maybe cheaper than renting. Plus, since it’s a purchase loan he has no additional downside risk of loss beyond whatever down payment he made.
I don’t think this guy should be losing any sleep. He’s not screwed at all.
ParticipantTo use the FHA bailout his new appraisal would have to come in at 775K or less (for a 697K FHA limit loan).
A new loan would be at least 6.5%, plus the 1.5% annual fee and 50% of future appreciation. He’s better off keeping the ultra-low 4.375% loan for the next 4 years. What a deal !
I wouldn;t characterize this guys situation as being screwed. fact, I think he’s in an excellent position. He apparently has a million in assets outside his property. Plus he has a 4.375% loan for the next 4 years. 3700 bucks per month interest, plus taxes and insurance, so maybe $4800 per month or so. In 40% combined tax bracket, after taxes it’s probably $3100 per month. Maybe cheaper than renting. Plus, since it’s a purchase loan he has no additional downside risk of loss beyond whatever down payment he made.
I don’t think this guy should be losing any sleep. He’s not screwed at all.
ParticipantTo use the FHA bailout his new appraisal would have to come in at 775K or less (for a 697K FHA limit loan).
A new loan would be at least 6.5%, plus the 1.5% annual fee and 50% of future appreciation. He’s better off keeping the ultra-low 4.375% loan for the next 4 years. What a deal !
I wouldn;t characterize this guys situation as being screwed. fact, I think he’s in an excellent position. He apparently has a million in assets outside his property. Plus he has a 4.375% loan for the next 4 years. 3700 bucks per month interest, plus taxes and insurance, so maybe $4800 per month or so. In 40% combined tax bracket, after taxes it’s probably $3100 per month. Maybe cheaper than renting. Plus, since it’s a purchase loan he has no additional downside risk of loss beyond whatever down payment he made.
I don’t think this guy should be losing any sleep. He’s not screwed at all.
ParticipantYour best bet is the new rescue package. Just get the payment above 30% of your income.
BTW, you help cause this mess.
People in this situation are not candidates to take advantage of the bailout.
First, FHA maximum is too far below his 1 Million dollar loan. If he paid his loan to under the FHA limit, he would be less than than 90% LTV and would get no principal reduction unless prices slide another 30-40%.
Other aspects that make the bailout unattractive in this situation. The 1.5% annual FHA fee on top of the loan amounts to about 10K per year at the FHA maximum loan limit. How much principal reduction would you expect if you were paying 10K per year ?
No, the bailout is not for this case.
In fact, I wonder if this bailout is ever really in the borrowers long-term favor, considering the 1.5% and owing at least 50% of future appreciation to the FHA.
ParticipantYour best bet is the new rescue package. Just get the payment above 30% of your income.
BTW, you help cause this mess.
People in this situation are not candidates to take advantage of the bailout.
First, FHA maximum is too far below his 1 Million dollar loan. If he paid his loan to under the FHA limit, he would be less than than 90% LTV and would get no principal reduction unless prices slide another 30-40%.
Other aspects that make the bailout unattractive in this situation. The 1.5% annual FHA fee on top of the loan amounts to about 10K per year at the FHA maximum loan limit. How much principal reduction would you expect if you were paying 10K per year ?
No, the bailout is not for this case.
In fact, I wonder if this bailout is ever really in the borrowers long-term favor, considering the 1.5% and owing at least 50% of future appreciation to the FHA.
ParticipantYour best bet is the new rescue package. Just get the payment above 30% of your income.
BTW, you help cause this mess.
People in this situation are not candidates to take advantage of the bailout.
First, FHA maximum is too far below his 1 Million dollar loan. If he paid his loan to under the FHA limit, he would be less than than 90% LTV and would get no principal reduction unless prices slide another 30-40%.
Other aspects that make the bailout unattractive in this situation. The 1.5% annual FHA fee on top of the loan amounts to about 10K per year at the FHA maximum loan limit. How much principal reduction would you expect if you were paying 10K per year ?
No, the bailout is not for this case.
In fact, I wonder if this bailout is ever really in the borrowers long-term favor, considering the 1.5% and owing at least 50% of future appreciation to the FHA.
ParticipantYour best bet is the new rescue package. Just get the payment above 30% of your income.
BTW, you help cause this mess.
People in this situation are not candidates to take advantage of the bailout.
First, FHA maximum is too far below his 1 Million dollar loan. If he paid his loan to under the FHA limit, he would be less than than 90% LTV and would get no principal reduction unless prices slide another 30-40%.
Other aspects that make the bailout unattractive in this situation. The 1.5% annual FHA fee on top of the loan amounts to about 10K per year at the FHA maximum loan limit. How much principal reduction would you expect if you were paying 10K per year ?
No, the bailout is not for this case.
In fact, I wonder if this bailout is ever really in the borrowers long-term favor, considering the 1.5% and owing at least 50% of future appreciation to the FHA.
ParticipantYour best bet is the new rescue package. Just get the payment above 30% of your income.
BTW, you help cause this mess.
People in this situation are not candidates to take advantage of the bailout.
First, FHA maximum is too far below his 1 Million dollar loan. If he paid his loan to under the FHA limit, he would be less than than 90% LTV and would get no principal reduction unless prices slide another 30-40%.
Other aspects that make the bailout unattractive in this situation. The 1.5% annual FHA fee on top of the loan amounts to about 10K per year at the FHA maximum loan limit. How much principal reduction would you expect if you were paying 10K per year ?
No, the bailout is not for this case.
In fact, I wonder if this bailout is ever really in the borrowers long-term favor, considering the 1.5% and owing at least 50% of future appreciation to the FHA.
ParticipantThe guy seems too reasonable to ignore.
ParticipantThe guy seems too reasonable to ignore.
ParticipantThe guy seems too reasonable to ignore.
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