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HLS
ParticipantRich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.
If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.
A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.
With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.
ParticipantIt should be clear that FHA/Fannie/Freddie DO NOT make housing affordable as they were intended to do, they make housing unaffordable by allowing prices to remain inflated.
The govt CANNOT let housing collapse completely. It is too large a part of the economy. They will drag out the pain for years and hope that the more recent buyers will be a better risk than the previous buyers.
The longer it takes, the more stable the market becomes and they look like they fixed it.
Many established areas will find their own bottom through normal supply and demand, sooner rather than later.
If unemployment gets worse, housing will get MUCH worse.Housing market is just a cross between a Ponzi scheme and multi level marketing that allows many people to profit, but some people do get burned.
ParticipantIt should be clear that FHA/Fannie/Freddie DO NOT make housing affordable as they were intended to do, they make housing unaffordable by allowing prices to remain inflated.
The govt CANNOT let housing collapse completely. It is too large a part of the economy. They will drag out the pain for years and hope that the more recent buyers will be a better risk than the previous buyers.
The longer it takes, the more stable the market becomes and they look like they fixed it.
Many established areas will find their own bottom through normal supply and demand, sooner rather than later.
If unemployment gets worse, housing will get MUCH worse.Housing market is just a cross between a Ponzi scheme and multi level marketing that allows many people to profit, but some people do get burned.
ParticipantIt should be clear that FHA/Fannie/Freddie DO NOT make housing affordable as they were intended to do, they make housing unaffordable by allowing prices to remain inflated.
The govt CANNOT let housing collapse completely. It is too large a part of the economy. They will drag out the pain for years and hope that the more recent buyers will be a better risk than the previous buyers.
The longer it takes, the more stable the market becomes and they look like they fixed it.
Many established areas will find their own bottom through normal supply and demand, sooner rather than later.
If unemployment gets worse, housing will get MUCH worse.Housing market is just a cross between a Ponzi scheme and multi level marketing that allows many people to profit, but some people do get burned.
ParticipantIt should be clear that FHA/Fannie/Freddie DO NOT make housing affordable as they were intended to do, they make housing unaffordable by allowing prices to remain inflated.
The govt CANNOT let housing collapse completely. It is too large a part of the economy. They will drag out the pain for years and hope that the more recent buyers will be a better risk than the previous buyers.
The longer it takes, the more stable the market becomes and they look like they fixed it.
Many established areas will find their own bottom through normal supply and demand, sooner rather than later.
If unemployment gets worse, housing will get MUCH worse.Housing market is just a cross between a Ponzi scheme and multi level marketing that allows many people to profit, but some people do get burned.
ParticipantIt should be clear that FHA/Fannie/Freddie DO NOT make housing affordable as they were intended to do, they make housing unaffordable by allowing prices to remain inflated.
The govt CANNOT let housing collapse completely. It is too large a part of the economy. They will drag out the pain for years and hope that the more recent buyers will be a better risk than the previous buyers.
The longer it takes, the more stable the market becomes and they look like they fixed it.
Many established areas will find their own bottom through normal supply and demand, sooner rather than later.
If unemployment gets worse, housing will get MUCH worse.Housing market is just a cross between a Ponzi scheme and multi level marketing that allows many people to profit, but some people do get burned.
Participant[quote=Huckleberry][quote=HLS]June 11, 2010
(On a $400K loan the monthly charge would go from $183 to $500)
**[/quote]
HLS, you meant annual charge, not monthly, correct?[/quote]Annual premium would go from $2200 to $6000.
I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.
With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.
The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.
There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.
Participant[quote=Huckleberry][quote=HLS]June 11, 2010
(On a $400K loan the monthly charge would go from $183 to $500)
**[/quote]
HLS, you meant annual charge, not monthly, correct?[/quote]Annual premium would go from $2200 to $6000.
I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.
With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.
The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.
There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.
Participant[quote=Huckleberry][quote=HLS]June 11, 2010
(On a $400K loan the monthly charge would go from $183 to $500)
**[/quote]
HLS, you meant annual charge, not monthly, correct?[/quote]Annual premium would go from $2200 to $6000.
I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.
With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.
The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.
There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.
Participant[quote=Huckleberry][quote=HLS]June 11, 2010
(On a $400K loan the monthly charge would go from $183 to $500)
**[/quote]
HLS, you meant annual charge, not monthly, correct?[/quote]Annual premium would go from $2200 to $6000.
I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.
With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.
The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.
There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.
Participant[quote=Huckleberry][quote=HLS]June 11, 2010
(On a $400K loan the monthly charge would go from $183 to $500)
**[/quote]
HLS, you meant annual charge, not monthly, correct?[/quote]Annual premium would go from $2200 to $6000.
I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.
With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.
The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.
There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.
ParticipantSuggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.ParticipantSuggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.ParticipantSuggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price. -
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