[NeetaT]

“For mortgages, I’d actually like to see the GSEs scale back to an 80% guarantee up to $417,000. If a lender wanted to take the risk on that last 20%, they would be free to do so. However, most likely, this would force lenders to go back to requiring 20% down and we would quickly see the home-buying market go back to normal.”

Isn’t this the way banks are headed? I mean back to the 20% down concept. I haven’t heard anything corroborating what I hope happens, but it seems like the logical thing to do. Practicing this concept may be the only way to assure investors that they are making a good investment in the mortgage bundles.

[NeetaT]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate. At an 8% interest rate the PITI payment drops to support a $260,000 mortgage and the sale price (median) drops to $290,000. Should the sky fall and we end up with 10% interest rates again that mortgage drops to ~$215,000 and a sale price of ~$240,000.”

I agree and this is why I am dumbfounded, vexed, perplexed, taken-back, befuddled, etc…….

[NeetaT]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate. At an 8% interest rate the PITI payment drops to support a $260,000 mortgage and the sale price (median) drops to $290,000. Should the sky fall and we end up with 10% interest rates again that mortgage drops to ~$215,000 and a sale price of ~$240,000.”

I agree and this is why I am dumbfounded, vexed, perplexed, taken-back, befuddled, etc…….

[NeetaT]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate. At an 8% interest rate the PITI payment drops to support a $260,000 mortgage and the sale price (median) drops to $290,000. Should the sky fall and we end up with 10% interest rates again that mortgage drops to ~$215,000 and a sale price of ~$240,000.”

I agree and this is why I am dumbfounded, vexed, perplexed, taken-back, befuddled, etc…….

[NeetaT]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate. At an 8% interest rate the PITI payment drops to support a $260,000 mortgage and the sale price (median) drops to $290,000. Should the sky fall and we end up with 10% interest rates again that mortgage drops to ~$215,000 and a sale price of ~$240,000.”

I agree and this is why I am dumbfounded, vexed, perplexed, taken-back, befuddled, etc…….

[NeetaT]

“Incidentally, the $80,000 household income, as would be represented at the 75th percentile in our region, could swing a mortgage of $310,000, leading to the $345,000 median housing price. That is, of course, assuming no move-up equity and the aforementioned 6% mortgage interest rate. At an 8% interest rate the PITI payment drops to support a $260,000 mortgage and the sale price (median) drops to $290,000. Should the sky fall and we end up with 10% interest rates again that mortgage drops to ~$215,000 and a sale price of ~$240,000.”

I agree and this is why I am dumbfounded, vexed, perplexed, taken-back, befuddled, etc…….

[NeetaT]

It’s an enigma!!!!!

[NeetaT]

It’s an enigma!!!!!

[NeetaT]

It’s an enigma!!!!!

[NeetaT]

It’s an enigma!!!!!

[NeetaT]

It’s an enigma!!!!!

[NeetaT]

NeetaT –
“Your implicit assumption is that median income households buy median price homes in San Diego.
Is this realistic ?”

“Probably not” OK, someone else give it a shot.

[NeetaT]

NeetaT –
“Your implicit assumption is that median income households buy median price homes in San Diego.
Is this realistic ?”

“Probably not” OK, someone else give it a shot.

[NeetaT]

NeetaT –
“Your implicit assumption is that median income households buy median price homes in San Diego.
Is this realistic ?”

“Probably not” OK, someone else give it a shot.

[NeetaT]

NeetaT –
“Your implicit assumption is that median income households buy median price homes in San Diego.
Is this realistic ?”

“Probably not” OK, someone else give it a shot.

[Author]

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