[Raybyrnes]

For many homeowners who are not pulling out equity to buy hum v’s or putting in a new pool the housing market is meaningless. They can afford the monthly payments, they plan on staying for a loing time and are making additional payment each month to pay the house off early.

Here is an idea. There are really 2 components to any home. The first component is the land, the second component is the home. Commodity prices are up dramatically ie. copper, oil, lumber, cement, etc. There is a push to reform immigration which would increase the cost of labor used to build homes. The bottom line here is that while land values are coming down the cost of building is going up sharply. What is the par value of a new home. 80, 100, 150??? Or even more meaningful what can be used as the rate of increase. 3,5,7, 12???

[Raybyrnes]

For many homeowners who are not pulling out equity to buy hum v’s or putting in a new pool the housing market is meaningless. They can afford the monthly payments, they plan on staying for a loing time and are making additional payment each month to pay the house off early.

Here is an idea. There are really 2 components to any home. The first component is the land, the second component is the home. Commodity prices are up dramatically ie. copper, oil, lumber, cement, etc. There is a push to reform immigration which would increase the cost of labor used to build homes. The bottom line here is that while land values are coming down the cost of building is going up sharply. What is the par value of a new home. 80, 100, 150??? Or even more meaningful what can be used as the rate of increase. 3,5,7, 12???

[Raybyrnes]

For many homeowners who are not pulling out equity to buy hum v’s or putting in a new pool the housing market is meaningless. They can afford the monthly payments, they plan on staying for a loing time and are making additional payment each month to pay the house off early.

Here is an idea. There are really 2 components to any home. The first component is the land, the second component is the home. Commodity prices are up dramatically ie. copper, oil, lumber, cement, etc. There is a push to reform immigration which would increase the cost of labor used to build homes. The bottom line here is that while land values are coming down the cost of building is going up sharply. What is the par value of a new home. 80, 100, 150??? Or even more meaningful what can be used as the rate of increase. 3,5,7, 12???

[Raybyrnes]

Navy Federal Credit Union recently advertised 100% up to 800K. Usually means that there are are other credit unions offering similiar products.

100% Financing—HomeBuyers Choice
Ideal for the first-time homebuyer:

* 15-, 30-, or 40-year fixed rates
* No down payment required
* No PMI required
* Seller concessions up to 4% allowed
* Maximum loan-to-value of 101.50%
(includes a HomeBuyers Choice Funding Fee, which can be financed into the loan amount)
* Available for loans up to $850,000

View payment example.

[Raybyrnes]

Navy Federal Credit Union recently advertised 100% up to 800K. Usually means that there are are other credit unions offering similiar products.

100% Financing—HomeBuyers Choice
Ideal for the first-time homebuyer:

* 15-, 30-, or 40-year fixed rates
* No down payment required
* No PMI required
* Seller concessions up to 4% allowed
* Maximum loan-to-value of 101.50%
(includes a HomeBuyers Choice Funding Fee, which can be financed into the loan amount)
* Available for loans up to $850,000

View payment example.

[Raybyrnes]

I believe you are referring to the income limits and the max home values. I am certain that there is some addtional documentation but IF you do qualify it seems to be the way to go.

In the student loan industry lenders waive fees and offer incentives. Do you know if lenders compete by waiving fees in these programs. By this I mean there is typically a 1.5% origination fee for the CHAFA loan. Will lenders waive this fee in the interests of competition.

[Raybyrnes]

I believe you are referring to the income limits and the max home values. I am certain that there is some addtional documentation but IF you do qualify it seems to be the way to go.

In the student loan industry lenders waive fees and offer incentives. Do you know if lenders compete by waiving fees in these programs. By this I mean there is typically a 1.5% origination fee for the CHAFA loan. Will lenders waive this fee in the interests of competition.

[Raybyrnes]

HLS
Annuities, Car Leases, Neg Am Loans. These types of finanical instraments are not for the average person and I beleive that you are correct in your statement that they are more often than not good for the lending institiution as opposed to the customer. But at the same time if the average Joe started doing some thinking as opposed to asking “what is my monthly payment or what is my rate” and started to ask educated questions than a lot of these poor decisions could have been avoided.

I would like to get you opinion on the CHAFA and ChDAP Loan programs for First time home buyers. For thsoe that qualify it seems like these are good option to start with.

[Raybyrnes]

HLS
Annuities, Car Leases, Neg Am Loans. These types of finanical instraments are not for the average person and I beleive that you are correct in your statement that they are more often than not good for the lending institiution as opposed to the customer. But at the same time if the average Joe started doing some thinking as opposed to asking “what is my monthly payment or what is my rate” and started to ask educated questions than a lot of these poor decisions could have been avoided.

I would like to get you opinion on the CHAFA and ChDAP Loan programs for First time home buyers. For thsoe that qualify it seems like these are good option to start with.

[Raybyrnes]

Maybe I’m missing something but why would there be anything wrong with a Neg Am Loan if you already know you can afford a 30 year fixed. Seems to me you would simply need to figure out if you could get a better rate of return on the 12 to 15 k you are saving on the payment. Not going to say that is an easy thiing to do but for those who are heavy into investing seems a lot chaeaper than margin rates or if I owned my own busing it is cheaper than an SBA loan. If on the other hand I could not afford the 3500 hundred payment and the neg am was the only way I could get into the home I would would tend to think that this would be an inappropriate product.

This guy might have been a schmuck but I would want to know the difference between payment on an ARM and 30 year fixed if I were making a decision.

[Raybyrnes]

Maybe I’m missing something but why would there be anything wrong with a Neg Am Loan if you already know you can afford a 30 year fixed. Seems to me you would simply need to figure out if you could get a better rate of return on the 12 to 15 k you are saving on the payment. Not going to say that is an easy thiing to do but for those who are heavy into investing seems a lot chaeaper than margin rates or if I owned my own busing it is cheaper than an SBA loan. If on the other hand I could not afford the 3500 hundred payment and the neg am was the only way I could get into the home I would would tend to think that this would be an inappropriate product.

This guy might have been a schmuck but I would want to know the difference between payment on an ARM and 30 year fixed if I were making a decision.

[Raybyrnes]

“With respect, I can only say that you wasted alot of your time. An honest mortgage person will hide nothing, tell you the truth about everything, and there is no need to spend a month putting together a thesis.”

Enjoy the post. Think this is true of all professions. People wasting a lot of time thinking that somehow they can game the system.

Rather than spending months reading books I would think that a better analysis would be ” What am I looking to accomplish? What is going to make me feel most comfortable at night? After coming to terms with this matching the product up with a professional should be easy. Professional who know what they are doing are not going to waste their time trying to oversell someone. If they know the market they will be in line with their pricing.

[Raybyrnes]

“With respect, I can only say that you wasted alot of your time. An honest mortgage person will hide nothing, tell you the truth about everything, and there is no need to spend a month putting together a thesis.”

Enjoy the post. Think this is true of all professions. People wasting a lot of time thinking that somehow they can game the system.

Rather than spending months reading books I would think that a better analysis would be ” What am I looking to accomplish? What is going to make me feel most comfortable at night? After coming to terms with this matching the product up with a professional should be easy. Professional who know what they are doing are not going to waste their time trying to oversell someone. If they know the market they will be in line with their pricing.

[Raybyrnes]

Very interessting concept. I will not try to point out any problems right now because it seems that you have this game well thougtht out.

Part of the reason I have chosen to leave money in previous 401K’s is becasue I have have had access to some quality Mutual funds and felt that when I rebalanced or chang funds I avoided paying comissions. I try to rebalance 2 times a year. I have attempted to aggregate my portfolio excluding only the 529 which I opened in my parents name because they get the tax deduciton in NY. By aggregating everything together and then reallocating it oftem times means that there are a number of trades going on and by keeping them in the 401K I avoidhaving to commissions while simultaneously allowing me to take on a level of risk i am comfortable with.

[Raybyrnes]

Very interessting concept. I will not try to point out any problems right now because it seems that you have this game well thougtht out.

Part of the reason I have chosen to leave money in previous 401K’s is becasue I have have had access to some quality Mutual funds and felt that when I rebalanced or chang funds I avoided paying comissions. I try to rebalance 2 times a year. I have attempted to aggregate my portfolio excluding only the 529 which I opened in my parents name because they get the tax deduciton in NY. By aggregating everything together and then reallocating it oftem times means that there are a number of trades going on and by keeping them in the 401K I avoidhaving to commissions while simultaneously allowing me to take on a level of risk i am comfortable with.

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