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HLS
ParticipantAhhh Perry, Thank you.
It’s just that when I see masses of people in the world with so much less than most Americans, it is humbling.
I’m going to disconnect my icemaker right now. I’m so spoiled. When I was a kid I had to fill up the ice cube trays and carry them to the freezer.
Also had to get up to change the channel on the TV and actually answer the phone to find out who was calling.Those were the good old days. 😉
ParticipantOf course,, but what happens when the responsible borrower of $400K gets into trouble or the $500K item that you loaned $400K on becomes worth $250K ?
Thirst for above market returns creates a crazy risk/reward structure.
Institutions offer comepetitive rates, that are FDIC insured to get deposits, and then can lend out multiples of the incoming deposits to what could become risky loans.
Leverage is everyone’s friend on the way up…Watch out below on the way down. The original deposits are backed by taxpayers.
ParticipantOf course,, but what happens when the responsible borrower of $400K gets into trouble or the $500K item that you loaned $400K on becomes worth $250K ?
Thirst for above market returns creates a crazy risk/reward structure.
Institutions offer comepetitive rates, that are FDIC insured to get deposits, and then can lend out multiples of the incoming deposits to what could become risky loans.
Leverage is everyone’s friend on the way up…Watch out below on the way down. The original deposits are backed by taxpayers.
ParticipantIt’s not just San Diego, it’s America.
The credit card has changed the economy in the last 40 years, for the worse.
Attitude of entitlement of the recent generation isn’t a good thing.I’ve been drinking water since I was a kid. People thought I was a freak. Some people now pay more for a fancy bottle of water than they do for gas per ounce. I just heard on the radio that AquaFina is tap water.
Regular coffee isn’t good enough anymore, many are convinced that expensive coffee with multiple names and a sleeve on the cup tastes better. When I was a kid, Sambo’s had a great bottomless cup of coffee for a nickel, but then they couldn’t even keep the name Sambo’s because someone was offended. (THAT is a whole other topic)
The largest generation of seniors who are grossly in debt will be a burden to this country over the next 25 years.
No empire stays on top forever. Roman, British, German, French, Greek all fell. Guess who’s next.
China will own America sooner than you might think. We’ve already sold out, I think that it’s too late to stop it.
Everyone is told (and believes) that if you are invested in the stock market via 401K, IRA, or mutual fund,
“DON’T WORRY” ,,, “You will be ok… It’s time in the market, not timing”…. “it’s just a correction….”Ask any American over 75 today their views on society.
It’s sad to many of them.Nobody wants to talk about the decline of western civilization. Global Big business has taken over. Welcome to the 21st century.
I’m a little bit crazy, I’m a little bit scared. I hope that it doesn’t happen. With conviction, can someone PLEASE tell me that I am wrong ??
ParticipantIt’s not just San Diego, it’s America.
The credit card has changed the economy in the last 40 years, for the worse.
Attitude of entitlement of the recent generation isn’t a good thing.I’ve been drinking water since I was a kid. People thought I was a freak. Some people now pay more for a fancy bottle of water than they do for gas per ounce. I just heard on the radio that AquaFina is tap water.
Regular coffee isn’t good enough anymore, many are convinced that expensive coffee with multiple names and a sleeve on the cup tastes better. When I was a kid, Sambo’s had a great bottomless cup of coffee for a nickel, but then they couldn’t even keep the name Sambo’s because someone was offended. (THAT is a whole other topic)
The largest generation of seniors who are grossly in debt will be a burden to this country over the next 25 years.
No empire stays on top forever. Roman, British, German, French, Greek all fell. Guess who’s next.
China will own America sooner than you might think. We’ve already sold out, I think that it’s too late to stop it.
Everyone is told (and believes) that if you are invested in the stock market via 401K, IRA, or mutual fund,
“DON’T WORRY” ,,, “You will be ok… It’s time in the market, not timing”…. “it’s just a correction….”Ask any American over 75 today their views on society.
It’s sad to many of them.Nobody wants to talk about the decline of western civilization. Global Big business has taken over. Welcome to the 21st century.
I’m a little bit crazy, I’m a little bit scared. I hope that it doesn’t happen. With conviction, can someone PLEASE tell me that I am wrong ??
ParticipantWithout somewhat loose standards, borrowers wouldn’t qualify. It would constrict spending, and the economy would suffer.
When some people use credit cards, they are agreeing to rates up to 30%… Those that use Payday advance have rates up to 400%…. These lenders are taking risks with unsecured debt. Is it the govt’s job to outlaw this ?
Even if 100% home financing is abolished, there will still be those looking to borrow based on their monthly repayment, regardless of rate, and there will be parties willing to loan at some rate.
Car dealers sell cars to the masses based on payments, not rates.
90% home financing several years ago is now 100% (or higher) in many cases.
There is so much paper wealth around, it’s insane. More than ever before.
My guess is that if one quarter of the population wanted to cash out, it would create an economic collapse.Because people are convinced to stay in the stock market when it declines and hang on to homes in a declining market, it keeps a real collapse from happening. “it’s only a correction….”
There is a small % of homes on the market right now and it is a crisis. People talk about a home still being “worth”
$700K today, but if 25% of people wanted to cash out at the same time, what is that house really worth ?The same applies to stocks. As long as inventory is held and off the market, and there is a (false) sense of security of “worth” it’s harder to have a real collapse.
1930’s depression cured an entire generation of wanting to hold anything other than cash, and some wouldn’t even put it into a bank. They remembered waiting in line and unable to get it out.
Many people with home equity today are also unable to get it out, as they don’t qualify to get a decent loan.
We are all guilty of complacency today with anything other than cash.
I’m not predicting an economic collapse, but am aware that it could happen. I think that anyone who says it can’t is fooling themselves. I hope that it doesn’t happen.ParticipantWithout somewhat loose standards, borrowers wouldn’t qualify. It would constrict spending, and the economy would suffer.
When some people use credit cards, they are agreeing to rates up to 30%… Those that use Payday advance have rates up to 400%…. These lenders are taking risks with unsecured debt. Is it the govt’s job to outlaw this ?
Even if 100% home financing is abolished, there will still be those looking to borrow based on their monthly repayment, regardless of rate, and there will be parties willing to loan at some rate.
Car dealers sell cars to the masses based on payments, not rates.
90% home financing several years ago is now 100% (or higher) in many cases.
There is so much paper wealth around, it’s insane. More than ever before.
My guess is that if one quarter of the population wanted to cash out, it would create an economic collapse.Because people are convinced to stay in the stock market when it declines and hang on to homes in a declining market, it keeps a real collapse from happening. “it’s only a correction….”
There is a small % of homes on the market right now and it is a crisis. People talk about a home still being “worth”
$700K today, but if 25% of people wanted to cash out at the same time, what is that house really worth ?The same applies to stocks. As long as inventory is held and off the market, and there is a (false) sense of security of “worth” it’s harder to have a real collapse.
1930’s depression cured an entire generation of wanting to hold anything other than cash, and some wouldn’t even put it into a bank. They remembered waiting in line and unable to get it out.
Many people with home equity today are also unable to get it out, as they don’t qualify to get a decent loan.
We are all guilty of complacency today with anything other than cash.
I’m not predicting an economic collapse, but am aware that it could happen. I think that anyone who says it can’t is fooling themselves. I hope that it doesn’t happen.ParticipantIt’s a better loan for the borrower. The rate is locked for the longer period. The subprime push of 2 year loans wasnt intended to be a long term loan, but it’s sad how many prime borrowers that should have long term fixed loans are in these sp’s with a prepay that will need to refi.
For short term borrowers or hopeful flippers, they don’t need a 5 YR. Every situation is different.
The intent of a 2YR loan was a band aid. It turned into a crutch.
There is a sp loan today that prices out better than a prime loan. At 65% LTV 5 YR ARM for 5.75%, but it comes with a 3 YR prepay, and you need a 700+ credit score. Less risk to the lender @65%. It’s cheap money today, but only for 5 yrs.
Of course the 90% will restrict many people from qualifying. There are lenders still loaning up to 100%, it’s the qualifying that is more difficult….
ParticipantIt’s a better loan for the borrower. The rate is locked for the longer period. The subprime push of 2 year loans wasnt intended to be a long term loan, but it’s sad how many prime borrowers that should have long term fixed loans are in these sp’s with a prepay that will need to refi.
For short term borrowers or hopeful flippers, they don’t need a 5 YR. Every situation is different.
The intent of a 2YR loan was a band aid. It turned into a crutch.
There is a sp loan today that prices out better than a prime loan. At 65% LTV 5 YR ARM for 5.75%, but it comes with a 3 YR prepay, and you need a 700+ credit score. Less risk to the lender @65%. It’s cheap money today, but only for 5 yrs.
Of course the 90% will restrict many people from qualifying. There are lenders still loaning up to 100%, it’s the qualifying that is more difficult….
ParticipantStick with the facts…
The MEDIAN price is not an accurate indication of anything, in an up market or down market, nor when the current median is compared to a previous median.
IN FACT, it is probably the worst indicator that could be used, but the media uses it. Virtually ever spokespiece of the media is handed a script to say or write. They don’t question it or understand it. It’s how misinformation gets around, myths that get reported as facts.
In the last few months, (the most recent fuel for the median price) since subprime meltdown started, many people could no longer qualify for purchase loans. These are MOSTLY entry level buyers at the lower end of pricing.
Because they couldn’t get loans, they didn’t buy. Fewer lower priced homes sold. VOILA, the median went up.
It’s NOT an indication of strength in the market in any way shape or form, sorry.Here’s an example:
1,2,3,4,5,6,7, The median is 4
3,4,5,6,7 The median is 5 WOW 25% higher !!You can skew stats to your favor when necessary, but MEDIAN house prices means nada, even when compared to previous medians.
In Driver’s Ed I was taught to avoid the median.
ParticipantStick with the facts…
The MEDIAN price is not an accurate indication of anything, in an up market or down market, nor when the current median is compared to a previous median.
IN FACT, it is probably the worst indicator that could be used, but the media uses it. Virtually ever spokespiece of the media is handed a script to say or write. They don’t question it or understand it. It’s how misinformation gets around, myths that get reported as facts.
In the last few months, (the most recent fuel for the median price) since subprime meltdown started, many people could no longer qualify for purchase loans. These are MOSTLY entry level buyers at the lower end of pricing.
Because they couldn’t get loans, they didn’t buy. Fewer lower priced homes sold. VOILA, the median went up.
It’s NOT an indication of strength in the market in any way shape or form, sorry.Here’s an example:
1,2,3,4,5,6,7, The median is 4
3,4,5,6,7 The median is 5 WOW 25% higher !!You can skew stats to your favor when necessary, but MEDIAN house prices means nada, even when compared to previous medians.
In Driver’s Ed I was taught to avoid the median.
ParticipantThank you,
I just discovered this site a few days ago.
I’m in the lending biz as a mortgage consultant in Murrieta. I’m not a salesman. I live in Fallbrook and have been in north county SD over 20 years.
I got my first loan in 1980. I survived the upside down market of the 1990’s. I’ve had tenants for over 20 years.
I over explain options to borrower’s so they can decide what’s right for them. I don’t make anything extra if they choose one over another. My fee is the same, and I hate option arms. I don’t make rebates on the back end.
I try to stick with the facts and throw a bit of opinion in now and then. I’m definitely a straight shooter, which some people DON’T seem to like.
I can poke holes in many ads and some financing myths.
It’s just what I do.I yam what I yam. I’ll try and stick around for awhile.
I might be able to be helpful to some, esp if they need to understand their financing options.ParticipantThank you,
I just discovered this site a few days ago.
I’m in the lending biz as a mortgage consultant in Murrieta. I’m not a salesman. I live in Fallbrook and have been in north county SD over 20 years.
I got my first loan in 1980. I survived the upside down market of the 1990’s. I’ve had tenants for over 20 years.
I over explain options to borrower’s so they can decide what’s right for them. I don’t make anything extra if they choose one over another. My fee is the same, and I hate option arms. I don’t make rebates on the back end.
I try to stick with the facts and throw a bit of opinion in now and then. I’m definitely a straight shooter, which some people DON’T seem to like.
I can poke holes in many ads and some financing myths.
It’s just what I do.I yam what I yam. I’ll try and stick around for awhile.
I might be able to be helpful to some, esp if they need to understand their financing options.ParticipantAn appraisal is only the opinion of the appraiser, but in the case of a tract home, regardless of price, it’s pretty hard to justify a 10% swing.
With custom homes and unusual parcels there is a bit more flexibility of opinion.
Most appraisers will not risk their license for an appraisal fee of a few hundred dollars.
A lender can and usually does appraisal reviews, esp at that level.Any intelligent appraiser WOULDN’T push the value of a $900K home to cover $100K of personal property.
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