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August 19, 2007 at 6:30 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78112
kev374
Participantwatch this:
http://www.paperdinero.com/BNN.aspx?id=336
Remember that for ALL borrowers the rates on Jumbos have gone up quite high. This makes a SIGNIFICANT impact on affordability. And just because someone qualifies for a loan doesn’t mean they necessarily want to stretch that much, especially in this market. Nobody is going to pay 50% of thier paychecks on a loan anymore and the thought of a 8% interest rate on such a large loan is not appealing to most buyers!! That type of thinking has passed because RE is now viewed as a depreciating asset.
August 19, 2007 at 6:30 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78236Participantwatch this:
http://www.paperdinero.com/BNN.aspx?id=336
Remember that for ALL borrowers the rates on Jumbos have gone up quite high. This makes a SIGNIFICANT impact on affordability. And just because someone qualifies for a loan doesn’t mean they necessarily want to stretch that much, especially in this market. Nobody is going to pay 50% of thier paychecks on a loan anymore and the thought of a 8% interest rate on such a large loan is not appealing to most buyers!! That type of thinking has passed because RE is now viewed as a depreciating asset.
August 19, 2007 at 6:30 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78259Participantwatch this:
http://www.paperdinero.com/BNN.aspx?id=336
Remember that for ALL borrowers the rates on Jumbos have gone up quite high. This makes a SIGNIFICANT impact on affordability. And just because someone qualifies for a loan doesn’t mean they necessarily want to stretch that much, especially in this market. Nobody is going to pay 50% of thier paychecks on a loan anymore and the thought of a 8% interest rate on such a large loan is not appealing to most buyers!! That type of thinking has passed because RE is now viewed as a depreciating asset.
August 19, 2007 at 3:08 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78052Participantfat_lazy, you’re correct jumbo loans aren’t going to “vanish”..I don’t think anyone is saying that, but demand is going to contract by probably 95+% to a trickle. This will virtually halt activity in the region, infact that is what is happening before our eyes right now.
How many well doc’d, 20% down, high credit score, high income buyers do you know that can buy $600k+ properties?? 20% down in itself is $120k cash + fees. How many have this kind of liquidity? The person who has this much liquidity is most likely already a homeowner or not looking to buy at the bottom end of the market, in that case who is going to buy the $500-600k “starter” homes? As for move up buyers with a lot of equity who is going to buy their 600k homes if they cannot find qualified buyers for their place first? And what makes you think that move up buyers are going to buy because they may as well wait for prices to come down to get a better tax basis.
Nothing adds up here except one reality…the market is going to crash and burn like no tommorow so that it is back to fundamentals that were in existence before this mania.
Remember that this SEVERE credit crunch is only a few weeks old and we do not currently know the effects until new reports come out. Wait a month or two and we will see SHOCKWAVES through this market because of this. One doesn’t have to be a rocket scientist to figure it out.
August 19, 2007 at 3:08 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78176Participantfat_lazy, you’re correct jumbo loans aren’t going to “vanish”..I don’t think anyone is saying that, but demand is going to contract by probably 95+% to a trickle. This will virtually halt activity in the region, infact that is what is happening before our eyes right now.
How many well doc’d, 20% down, high credit score, high income buyers do you know that can buy $600k+ properties?? 20% down in itself is $120k cash + fees. How many have this kind of liquidity? The person who has this much liquidity is most likely already a homeowner or not looking to buy at the bottom end of the market, in that case who is going to buy the $500-600k “starter” homes? As for move up buyers with a lot of equity who is going to buy their 600k homes if they cannot find qualified buyers for their place first? And what makes you think that move up buyers are going to buy because they may as well wait for prices to come down to get a better tax basis.
Nothing adds up here except one reality…the market is going to crash and burn like no tommorow so that it is back to fundamentals that were in existence before this mania.
Remember that this SEVERE credit crunch is only a few weeks old and we do not currently know the effects until new reports come out. Wait a month or two and we will see SHOCKWAVES through this market because of this. One doesn’t have to be a rocket scientist to figure it out.
August 19, 2007 at 3:08 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78198Participantfat_lazy, you’re correct jumbo loans aren’t going to “vanish”..I don’t think anyone is saying that, but demand is going to contract by probably 95+% to a trickle. This will virtually halt activity in the region, infact that is what is happening before our eyes right now.
How many well doc’d, 20% down, high credit score, high income buyers do you know that can buy $600k+ properties?? 20% down in itself is $120k cash + fees. How many have this kind of liquidity? The person who has this much liquidity is most likely already a homeowner or not looking to buy at the bottom end of the market, in that case who is going to buy the $500-600k “starter” homes? As for move up buyers with a lot of equity who is going to buy their 600k homes if they cannot find qualified buyers for their place first? And what makes you think that move up buyers are going to buy because they may as well wait for prices to come down to get a better tax basis.
Nothing adds up here except one reality…the market is going to crash and burn like no tommorow so that it is back to fundamentals that were in existence before this mania.
Remember that this SEVERE credit crunch is only a few weeks old and we do not currently know the effects until new reports come out. Wait a month or two and we will see SHOCKWAVES through this market because of this. One doesn’t have to be a rocket scientist to figure it out.
Participantjust a wild guess, it will finish at 12700 or so
Participantjust a wild guess, it will finish at 12700 or so
Participantjust a wild guess, it will finish at 12700 or so
ParticipantBubble bursting is good ; but the human costs are going to be terrible.
Yes it’s no good for the employees, but what about all those financially ignorant people who are losing their homes right now who got those exploding mortgages from Countrywide.
ParticipantBubble bursting is good ; but the human costs are going to be terrible.
Yes it’s no good for the employees, but what about all those financially ignorant people who are losing their homes right now who got those exploding mortgages from Countrywide.
ParticipantBubble bursting is good ; but the human costs are going to be terrible.
Yes it’s no good for the employees, but what about all those financially ignorant people who are losing their homes right now who got those exploding mortgages from Countrywide.
ParticipantBubble bursting is good ; but the human costs are going to be terrible.
Yes it’s no good for the employees, but what about all those financially ignorant people who are losing their homes right now who got those exploding mortgages from Countrywide.
Participant7-11 clerks aren’t paying back the million dollar loans they took out to speculate on properties in Miami/Las Vegas/Wisconsin/(insert anyplace in North America here) with?
LMAO!!
If the shares go down any further (which they will, only a matter of time) then perhaps they will wind up like New Century 😛 The huge mortgage mess unravelling is AHEAD of us, we haven’t even seen the bulk of the problems yet…imagine that!!!
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