[temeculaguy]

[quote=Eugene]What expected march tick up in the fed funds rate? We’re still strongly up against the zero bound. Current market expectations are for the first tick up (to 0.5%) to occur either in September or in November.[/quote]

Good old cnbc, they modified the article from what was originally posted.

Now it says that the guy they interviewed expects the march meeting to result in a raise and initially it said “widely believed.” I didn’t look at the current betting line and apparently after it was posted, the editor did.

[temeculaguy]

[quote=Eugene]What expected march tick up in the fed funds rate? We’re still strongly up against the zero bound. Current market expectations are for the first tick up (to 0.5%) to occur either in September or in November.[/quote]

Good old cnbc, they modified the article from what was originally posted.

Now it says that the guy they interviewed expects the march meeting to result in a raise and initially it said “widely believed.” I didn’t look at the current betting line and apparently after it was posted, the editor did.

[temeculaguy]

[quote=Eugene]What expected march tick up in the fed funds rate? We’re still strongly up against the zero bound. Current market expectations are for the first tick up (to 0.5%) to occur either in September or in November.[/quote]

Good old cnbc, they modified the article from what was originally posted.

Now it says that the guy they interviewed expects the march meeting to result in a raise and initially it said “widely believed.” I didn’t look at the current betting line and apparently after it was posted, the editor did.

[temeculaguy]

[quote=Eugene]What expected march tick up in the fed funds rate? We’re still strongly up against the zero bound. Current market expectations are for the first tick up (to 0.5%) to occur either in September or in November.[/quote]

Good old cnbc, they modified the article from what was originally posted.

Now it says that the guy they interviewed expects the march meeting to result in a raise and initially it said “widely believed.” I didn’t look at the current betting line and apparently after it was posted, the editor did.

[temeculaguy]

Here is what you are missing, 400k INTEREST ONLY LOAN!!!!

Look, I am considered a contrarian on these boards lately because I have an optimistic view of the future and have put today in perspective of where it falls in the last 20 years. I am not a “real estate is always bad, we are going to hell in a handbasket” guy. And I think you are talking yourself into bad math.

Interest only is nothing more than rent with risk. Use my formula, or at least use the fully amortized piti and ignore the tax deduction, it gets roughly cancelled out by maintenance and upkeep.

[temeculaguy]

Here is what you are missing, 400k INTEREST ONLY LOAN!!!!

Look, I am considered a contrarian on these boards lately because I have an optimistic view of the future and have put today in perspective of where it falls in the last 20 years. I am not a “real estate is always bad, we are going to hell in a handbasket” guy. And I think you are talking yourself into bad math.

Interest only is nothing more than rent with risk. Use my formula, or at least use the fully amortized piti and ignore the tax deduction, it gets roughly cancelled out by maintenance and upkeep.

[temeculaguy]

Here is what you are missing, 400k INTEREST ONLY LOAN!!!!

Look, I am considered a contrarian on these boards lately because I have an optimistic view of the future and have put today in perspective of where it falls in the last 20 years. I am not a “real estate is always bad, we are going to hell in a handbasket” guy. And I think you are talking yourself into bad math.

Interest only is nothing more than rent with risk. Use my formula, or at least use the fully amortized piti and ignore the tax deduction, it gets roughly cancelled out by maintenance and upkeep.

[temeculaguy]

Here is what you are missing, 400k INTEREST ONLY LOAN!!!!

Look, I am considered a contrarian on these boards lately because I have an optimistic view of the future and have put today in perspective of where it falls in the last 20 years. I am not a “real estate is always bad, we are going to hell in a handbasket” guy. And I think you are talking yourself into bad math.

Interest only is nothing more than rent with risk. Use my formula, or at least use the fully amortized piti and ignore the tax deduction, it gets roughly cancelled out by maintenance and upkeep.

[temeculaguy]

Here is what you are missing, 400k INTEREST ONLY LOAN!!!!

Look, I am considered a contrarian on these boards lately because I have an optimistic view of the future and have put today in perspective of where it falls in the last 20 years. I am not a “real estate is always bad, we are going to hell in a handbasket” guy. And I think you are talking yourself into bad math.

Interest only is nothing more than rent with risk. Use my formula, or at least use the fully amortized piti and ignore the tax deduction, it gets roughly cancelled out by maintenance and upkeep.

[temeculaguy]

One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. When just a couple of percentage points are added, the failure rate of those in the margin is much higher than those below that number. Part of the problem with what is happening right now is that they stopped using that number for a couple of years and it comes as no shock that those people couldn’t make it.

On a 100k GROSS, 2800 piti is already too much (a simple way to illustrate the 28%). That person takes home something in the neighborhood of 4-5k after medical insurance, retirement, etc. The house and utils is going to be 4k, too much, even if they get back an additional 600 a month in taxes.

They also don’t count gas for your car, braces for the kids, internet access or any of the dozens of other things that money ends up going to. They use that formula because it has been proven by a few million mortgages, they are protecting their money and in a way, it protects you, don’t set yourself up for failure. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.

[temeculaguy]

One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. When just a couple of percentage points are added, the failure rate of those in the margin is much higher than those below that number. Part of the problem with what is happening right now is that they stopped using that number for a couple of years and it comes as no shock that those people couldn’t make it.

On a 100k GROSS, 2800 piti is already too much (a simple way to illustrate the 28%). That person takes home something in the neighborhood of 4-5k after medical insurance, retirement, etc. The house and utils is going to be 4k, too much, even if they get back an additional 600 a month in taxes.

They also don’t count gas for your car, braces for the kids, internet access or any of the dozens of other things that money ends up going to. They use that formula because it has been proven by a few million mortgages, they are protecting their money and in a way, it protects you, don’t set yourself up for failure. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.

[temeculaguy]

One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. When just a couple of percentage points are added, the failure rate of those in the margin is much higher than those below that number. Part of the problem with what is happening right now is that they stopped using that number for a couple of years and it comes as no shock that those people couldn’t make it.

On a 100k GROSS, 2800 piti is already too much (a simple way to illustrate the 28%). That person takes home something in the neighborhood of 4-5k after medical insurance, retirement, etc. The house and utils is going to be 4k, too much, even if they get back an additional 600 a month in taxes.

They also don’t count gas for your car, braces for the kids, internet access or any of the dozens of other things that money ends up going to. They use that formula because it has been proven by a few million mortgages, they are protecting their money and in a way, it protects you, don’t set yourself up for failure. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.

[temeculaguy]

One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. When just a couple of percentage points are added, the failure rate of those in the margin is much higher than those below that number. Part of the problem with what is happening right now is that they stopped using that number for a couple of years and it comes as no shock that those people couldn’t make it.

On a 100k GROSS, 2800 piti is already too much (a simple way to illustrate the 28%). That person takes home something in the neighborhood of 4-5k after medical insurance, retirement, etc. The house and utils is going to be 4k, too much, even if they get back an additional 600 a month in taxes.

They also don’t count gas for your car, braces for the kids, internet access or any of the dozens of other things that money ends up going to. They use that formula because it has been proven by a few million mortgages, they are protecting their money and in a way, it protects you, don’t set yourself up for failure. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.

[temeculaguy]

One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. When just a couple of percentage points are added, the failure rate of those in the margin is much higher than those below that number. Part of the problem with what is happening right now is that they stopped using that number for a couple of years and it comes as no shock that those people couldn’t make it.

On a 100k GROSS, 2800 piti is already too much (a simple way to illustrate the 28%). That person takes home something in the neighborhood of 4-5k after medical insurance, retirement, etc. The house and utils is going to be 4k, too much, even if they get back an additional 600 a month in taxes.

They also don’t count gas for your car, braces for the kids, internet access or any of the dozens of other things that money ends up going to. They use that formula because it has been proven by a few million mortgages, they are protecting their money and in a way, it protects you, don’t set yourself up for failure. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.

[temeculaguy]

[quote=desmond]Cat,

I think the next few months really do matter, and if I were you I would wait to see how they play out. This blog is now controlled by the PIGS, not the PIGS your thinking of, Port, Ire, Greece,& Spain, but the Rancho CA pigs, the old renter, the Realtor and even the Grand Puba Rick (although his last article was hard for him to write). They have a biased agenda, they bought or are selling, and now want everybody else to buy. I think it is going to crater, not just remain flat, crater. In 6 months you can call me an idiot or buy me a drink.[/quote]

Which one am I? Who’s rick? who’s the old renter?

I love a challenge, wagering drinks is a bit pedestrian, shaving things, embarrasing tan lines by way of spray on tans, something fun, let’s put the six month crater challenge to the test. Mid August, I like it, I hate those that predict things three years from now. Just for those of interested in wagering, define crater.

[Author]

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