Forum Replies Created
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PerryChase
Participant” If you can truly get $270k in clear equity out of your present home, I would run, not walk. ”
I agree with ex-sd. Rent for a while then buy your dream house.
Your holding costs are still higher than comparable rent, so you would save money by renting PLUS you’ll have a growing downpayment to put towards your “forever” home which you’ll acquire at great discount, perhaps close to the selling price of your current home.
The only reason for owning is if your holding costs are subtantially LOWER than comparable rent making it a savings to own.
I did the calculation myself, that’s the simple answer to that question. You want to preserve your standard of living while saving money. Think of it as “how can I have the same standard of living for the lowest cash outflow.”
Participant” If you can truly get $270k in clear equity out of your present home, I would run, not walk. ”
I agree with ex-sd. Rent for a while then buy your dream house.
Your holding costs are still higher than comparable rent, so you would save money by renting PLUS you’ll have a growing downpayment to put towards your “forever” home which you’ll acquire at great discount, perhaps close to the selling price of your current home.
The only reason for owning is if your holding costs are subtantially LOWER than comparable rent making it a savings to own.
I did the calculation myself, that’s the simple answer to that question. You want to preserve your standard of living while saving money. Think of it as “how can I have the same standard of living for the lowest cash outflow.”
Participant” If you can truly get $270k in clear equity out of your present home, I would run, not walk. ”
I agree with ex-sd. Rent for a while then buy your dream house.
Your holding costs are still higher than comparable rent, so you would save money by renting PLUS you’ll have a growing downpayment to put towards your “forever” home which you’ll acquire at great discount, perhaps close to the selling price of your current home.
The only reason for owning is if your holding costs are subtantially LOWER than comparable rent making it a savings to own.
I did the calculation myself, that’s the simple answer to that question. You want to preserve your standard of living while saving money. Think of it as “how can I have the same standard of living for the lowest cash outflow.”
August 11, 2007 at 9:45 AM in reply to: Bush addresses the nation on the economy and the stock market tanks. Irony #73256ParticipantBecause progressive liberals are more intellectually honest and they aren’t as good at maligning the other side as unpatriotic and weak (on crime, immigrants, terrorists).
Why do families go back to the church were their children were molested? Why do poor whites in Red States vote to lower the capital gains tax (if they even know what that is)?
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Al Gore would not have gone to war in Iraq. Thousand of Americans and hundred of thousand of Iraqi would be alive today.
America would have higher mileage cars and Ford would not be near bankruptcy.
We would have an alternative energy industry that would provide some good paying jobs and exports for America.
We would still have the surplus carried over from the Clinton years, no war debt and we wouldn’t have to borrow from the Chinese or the Saudis.
Just a few important things.
August 11, 2007 at 9:45 AM in reply to: Bush addresses the nation on the economy and the stock market tanks. Irony #73375ParticipantBecause progressive liberals are more intellectually honest and they aren’t as good at maligning the other side as unpatriotic and weak (on crime, immigrants, terrorists).
Why do families go back to the church were their children were molested? Why do poor whites in Red States vote to lower the capital gains tax (if they even know what that is)?
——-
Al Gore would not have gone to war in Iraq. Thousand of Americans and hundred of thousand of Iraqi would be alive today.
America would have higher mileage cars and Ford would not be near bankruptcy.
We would have an alternative energy industry that would provide some good paying jobs and exports for America.
We would still have the surplus carried over from the Clinton years, no war debt and we wouldn’t have to borrow from the Chinese or the Saudis.
Just a few important things.
August 11, 2007 at 9:45 AM in reply to: Bush addresses the nation on the economy and the stock market tanks. Irony #73381ParticipantBecause progressive liberals are more intellectually honest and they aren’t as good at maligning the other side as unpatriotic and weak (on crime, immigrants, terrorists).
Why do families go back to the church were their children were molested? Why do poor whites in Red States vote to lower the capital gains tax (if they even know what that is)?
——-
Al Gore would not have gone to war in Iraq. Thousand of Americans and hundred of thousand of Iraqi would be alive today.
America would have higher mileage cars and Ford would not be near bankruptcy.
We would have an alternative energy industry that would provide some good paying jobs and exports for America.
We would still have the surplus carried over from the Clinton years, no war debt and we wouldn’t have to borrow from the Chinese or the Saudis.
Just a few important things.
ParticipantPasadena Broker, your buyers who are being denied loans are not being screwed. They are being saved. They are marginal buyers with spotty ability to pay. They should not be taking on mortgages in this declining market (making a pact with the devil).
Think of the mortgage market as being “born again” after havin’ “seen the light.”
The sellers on the other hand are screwed for sure.
ParticipantPasadena Broker, your buyers who are being denied loans are not being screwed. They are being saved. They are marginal buyers with spotty ability to pay. They should not be taking on mortgages in this declining market (making a pact with the devil).
Think of the mortgage market as being “born again” after havin’ “seen the light.”
The sellers on the other hand are screwed for sure.
ParticipantPasadena Broker, your buyers who are being denied loans are not being screwed. They are being saved. They are marginal buyers with spotty ability to pay. They should not be taking on mortgages in this declining market (making a pact with the devil).
Think of the mortgage market as being “born again” after havin’ “seen the light.”
The sellers on the other hand are screwed for sure.
ParticipantExcellent point NavyDoc. An ARM is an ARM regardless of it being Suprime, Alt-A, or prime.
http://www.newsday.com/business/nationworld/ats-ap_business12aug10,0,5500889.story
1) If you read the AP story, below is what they say about Option ARMs and interest only ARMs.
2) But IN ADDITION to that, you have to add the regular ARMs that are reseting at higher interest rates.
2) FURTHERMORE, you need to add all the negative cash flow investments (fixed, ARMs or whatever) where they owners’ staying power is being eroded day by day. How long can investors (even prime) bleed cash before they go bankrupt? For Downtown SD, were’re probably talking about 80% of owners.
All the news that I read indicate that there’ll be 2 million +++ foreclosures before the mess is cleaned up.
“Lenders made an estimated $581 billion in option ARM loans during 2005 and 2006 while doling out nearly $1.4 trillion in interest-only ARMs, according to LoanPerformance. A recent study estimated about $325 billion of these loans will default, leading to more than 1 million homeowners relinquishing their property to lenders. By comparison, about $212 billion in subprime loans were delinquent through May. ”
” Christopher Cagan, CoreLogic’s director of research and analytics, predicts about 1.1 million ARMs totaling $325 billion will sink into foreclosure as rising monthly payments squeeze borrowers. After accounting for the money recovered through property sales, he expects the losses from the fallout to total $112 billion, with the damage spread out over six years. ”
ParticipantExcellent point NavyDoc. An ARM is an ARM regardless of it being Suprime, Alt-A, or prime.
http://www.newsday.com/business/nationworld/ats-ap_business12aug10,0,5500889.story
1) If you read the AP story, below is what they say about Option ARMs and interest only ARMs.
2) But IN ADDITION to that, you have to add the regular ARMs that are reseting at higher interest rates.
2) FURTHERMORE, you need to add all the negative cash flow investments (fixed, ARMs or whatever) where they owners’ staying power is being eroded day by day. How long can investors (even prime) bleed cash before they go bankrupt? For Downtown SD, were’re probably talking about 80% of owners.
All the news that I read indicate that there’ll be 2 million +++ foreclosures before the mess is cleaned up.
“Lenders made an estimated $581 billion in option ARM loans during 2005 and 2006 while doling out nearly $1.4 trillion in interest-only ARMs, according to LoanPerformance. A recent study estimated about $325 billion of these loans will default, leading to more than 1 million homeowners relinquishing their property to lenders. By comparison, about $212 billion in subprime loans were delinquent through May. ”
” Christopher Cagan, CoreLogic’s director of research and analytics, predicts about 1.1 million ARMs totaling $325 billion will sink into foreclosure as rising monthly payments squeeze borrowers. After accounting for the money recovered through property sales, he expects the losses from the fallout to total $112 billion, with the damage spread out over six years. ”
ParticipantExcellent point NavyDoc. An ARM is an ARM regardless of it being Suprime, Alt-A, or prime.
http://www.newsday.com/business/nationworld/ats-ap_business12aug10,0,5500889.story
1) If you read the AP story, below is what they say about Option ARMs and interest only ARMs.
2) But IN ADDITION to that, you have to add the regular ARMs that are reseting at higher interest rates.
2) FURTHERMORE, you need to add all the negative cash flow investments (fixed, ARMs or whatever) where they owners’ staying power is being eroded day by day. How long can investors (even prime) bleed cash before they go bankrupt? For Downtown SD, were’re probably talking about 80% of owners.
All the news that I read indicate that there’ll be 2 million +++ foreclosures before the mess is cleaned up.
“Lenders made an estimated $581 billion in option ARM loans during 2005 and 2006 while doling out nearly $1.4 trillion in interest-only ARMs, according to LoanPerformance. A recent study estimated about $325 billion of these loans will default, leading to more than 1 million homeowners relinquishing their property to lenders. By comparison, about $212 billion in subprime loans were delinquent through May. ”
” Christopher Cagan, CoreLogic’s director of research and analytics, predicts about 1.1 million ARMs totaling $325 billion will sink into foreclosure as rising monthly payments squeeze borrowers. After accounting for the money recovered through property sales, he expects the losses from the fallout to total $112 billion, with the damage spread out over six years. ”
Participantcyphire, you sound like you have your priorities in order. You’ve achieved success without selling out your ideals. Us liberals are under appreciated. We care about the world, not just our pocket books.
Ok, I confess, I used to be a spender. I ate out every night and spent frivolously on everything. But no more. I’ve reformed since about 2001 and I haven’t bought a big ticket item since then. I drive my brothers’ hand-me-down cars. They are car buffs so I let them take the depreciation for me and it doesn’t cost me a penny. I prepare my own meals because it’s healthier and tastier. I now only eat restaurant food when I go out with friends.
My only remaining vice is that I want an architecturally designed house with a view. But even that is changing. Maybe I’ll just get a condo and call it quits.
You’re right contraman. I feels good to downsize. Plus the bank account likes it too.
So if financial ARMageddon comes about, I think that I’ll be fine. I have no debt and I can always grow vegetables and raise chicken and rabbits in the backyard (as long as we still have water). Afterall, the Brits did it during WWII and they turned out just fine.
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About Craigslist, there’s everything on there. What if people would just trade on Craigslist and never buy anything new again? Craig is certainly on to something and I commend him for not selling out and keeping the site free and free of ads.
Participantcyphire, you sound like you have your priorities in order. You’ve achieved success without selling out your ideals. Us liberals are under appreciated. We care about the world, not just our pocket books.
Ok, I confess, I used to be a spender. I ate out every night and spent frivolously on everything. But no more. I’ve reformed since about 2001 and I haven’t bought a big ticket item since then. I drive my brothers’ hand-me-down cars. They are car buffs so I let them take the depreciation for me and it doesn’t cost me a penny. I prepare my own meals because it’s healthier and tastier. I now only eat restaurant food when I go out with friends.
My only remaining vice is that I want an architecturally designed house with a view. But even that is changing. Maybe I’ll just get a condo and call it quits.
You’re right contraman. I feels good to downsize. Plus the bank account likes it too.
So if financial ARMageddon comes about, I think that I’ll be fine. I have no debt and I can always grow vegetables and raise chicken and rabbits in the backyard (as long as we still have water). Afterall, the Brits did it during WWII and they turned out just fine.
——–
About Craigslist, there’s everything on there. What if people would just trade on Craigslist and never buy anything new again? Craig is certainly on to something and I commend him for not selling out and keeping the site free and free of ads.
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