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(former)FormerSanDiegan
ParticipantWhat some of you guys are forgetting is that teaser rate and exotic loans are unaffordable if they are fully amortized, regardless of the interest rate and regardless of principal amount write downs.
Huh ?
So, let me get this straight. You don’t think there is any amount of principal write down that could make option ARMS or teaser-rate loans affordable ?
ParticipantWhat some of you guys are forgetting is that teaser rate and exotic loans are unaffordable if they are fully amortized, regardless of the interest rate and regardless of principal amount write downs.
Huh ?
So, let me get this straight. You don’t think there is any amount of principal write down that could make option ARMS or teaser-rate loans affordable ?
ParticipantWhat some of you guys are forgetting is that teaser rate and exotic loans are unaffordable if they are fully amortized, regardless of the interest rate and regardless of principal amount write downs.
Huh ?
So, let me get this straight. You don’t think there is any amount of principal write down that could make option ARMS or teaser-rate loans affordable ?
ParticipantWhat some of you guys are forgetting is that teaser rate and exotic loans are unaffordable if they are fully amortized, regardless of the interest rate and regardless of principal amount write downs.
Huh ?
So, let me get this straight. You don’t think there is any amount of principal write down that could make option ARMS or teaser-rate loans affordable ?
ParticipantBottom line: The impact of mortgage resets is a moving target and the level of impending doom will depend primarily on the level of short-term interest rates over the next 2-3 years.
ParticipantBottom line: The impact of mortgage resets is a moving target and the level of impending doom will depend primarily on the level of short-term interest rates over the next 2-3 years.
ParticipantBottom line: The impact of mortgage resets is a moving target and the level of impending doom will depend primarily on the level of short-term interest rates over the next 2-3 years.
ParticipantBottom line: The impact of mortgage resets is a moving target and the level of impending doom will depend primarily on the level of short-term interest rates over the next 2-3 years.
ParticipantBottom line: The impact of mortgage resets is a moving target and the level of impending doom will depend primarily on the level of short-term interest rates over the next 2-3 years.
ParticipantAssuming that interest rates remain at current levels (probably not a good assumption), I do not see the nice parts of these areas dropping to 12x annual rental income. People will buy in the nice areas at well before they become cheaper to own than rent. (Same is not true for the marginal areas). I would expect more like 14 or 15x at current interest rates. That’s about the point where the marginal cost to own vs rent is relatively small.
HOWEVER, if interest rates creep up to the 8% + range, I would fully expect to see houses in Point Loma sell for 12x rent or lower.
ParticipantAssuming that interest rates remain at current levels (probably not a good assumption), I do not see the nice parts of these areas dropping to 12x annual rental income. People will buy in the nice areas at well before they become cheaper to own than rent. (Same is not true for the marginal areas). I would expect more like 14 or 15x at current interest rates. That’s about the point where the marginal cost to own vs rent is relatively small.
HOWEVER, if interest rates creep up to the 8% + range, I would fully expect to see houses in Point Loma sell for 12x rent or lower.
ParticipantAssuming that interest rates remain at current levels (probably not a good assumption), I do not see the nice parts of these areas dropping to 12x annual rental income. People will buy in the nice areas at well before they become cheaper to own than rent. (Same is not true for the marginal areas). I would expect more like 14 or 15x at current interest rates. That’s about the point where the marginal cost to own vs rent is relatively small.
HOWEVER, if interest rates creep up to the 8% + range, I would fully expect to see houses in Point Loma sell for 12x rent or lower.
ParticipantAssuming that interest rates remain at current levels (probably not a good assumption), I do not see the nice parts of these areas dropping to 12x annual rental income. People will buy in the nice areas at well before they become cheaper to own than rent. (Same is not true for the marginal areas). I would expect more like 14 or 15x at current interest rates. That’s about the point where the marginal cost to own vs rent is relatively small.
HOWEVER, if interest rates creep up to the 8% + range, I would fully expect to see houses in Point Loma sell for 12x rent or lower.
ParticipantAssuming that interest rates remain at current levels (probably not a good assumption), I do not see the nice parts of these areas dropping to 12x annual rental income. People will buy in the nice areas at well before they become cheaper to own than rent. (Same is not true for the marginal areas). I would expect more like 14 or 15x at current interest rates. That’s about the point where the marginal cost to own vs rent is relatively small.
HOWEVER, if interest rates creep up to the 8% + range, I would fully expect to see houses in Point Loma sell for 12x rent or lower.
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