Reply With QuoteThere is no free lunch in a 100% LTV single loan.
You have not met me yet. It looks like you live right up the road from me I would be happy to explain it to you.
No MI but a higher rate, right?
Actually it is for low to moderate income households. Two qualifications. If you make less than 80K a year with in the home or your home is located in a Low to moderate income census tract. The rates are lower than a 6.5% with no discount point and no origination fee.
There is no free lunch in a 100% LTV single loan.
You have not met me yet. It looks like you live right up the road from me I would be happy to explain it to you.
And people said I was crazy to fix both my houses for 30 years at 5% a couple years ago...
The market is going to get worse according to all the experts. I have to laugh at all the people that told me it was going to last forever. I have lived through two crashes before, and this market is on the same course. The difference now though is a lot of people don't have any real money (other than payments) in these homes. A lot easier to walk away when you don't put 10-20% down.
One of the experts that I get a letter from said there are 12k condos waiting to come into the market in San Diego. He said that in a normal market 1k a year come in and that the added inventory is going to cause some serious problems. For those looking to pick up deals he advises not to buy for at least 6 month to a year because prices will continue to fall. He said that the amatuers that have been in the market the past few years are the ones that are now going to suffer, and the experts will then step in and clean up. Should get interesting.
After watching multiple "flip this house" type shows pop up on TV, I can't help but compare the equity bubble of the 90's when everyone was day trading in their spare time.
When school teachers and retirees without any experoiience start trying to buy, and flip real estate to make obscene money its time to run.
There is no free lunch in a 100% LTV single loan.
But, you can avoid MI with a combo, but still, the rate on those seconds can be shocking!
The lunch may not be free, but if you've got a really good credit score it may be inexpensive enough to make sense. Oppt'y cost of money (can you put it some where else) to make the incremental interest expense (which is tax deductable) low relative to other investment returns. Buying a new boat is not one of them BTW.
And people said I was crazy to fix both my houses for 30 years at 5% a couple years ago...
The market is going to get worse according to all the experts. I have to laugh at all the people that told me it was going to last forever. I have lived through two crashes before, and this market is on the same course. The difference now though is a lot of people don't have any real money (other than payments) in these homes. A lot easier to walk away when you don't put 10-20% down.
One of the experts that I get a letter from said there are 12k condos waiting to come into the market in San Diego. He said that in a normal market 1k a year come in and that the added inventory is going to cause some serious problems. For those looking to pick up deals he advises not to buy for at least 6 month to a year because prices will continue to fall. He said that the amatuers that have been in the market the past few years are the ones that are now going to suffer, and the experts will then step in and clean up. Should get interesting.
Everybody told us months ago that the sky was not falling...It appears that those optimists are starting to side with us.
Actually it is for low to moderate income households. Two qualifications. If you make less than 80K a year with in the home or your home is located in a Low to moderate income census tract. The rates are lower than a 6.5% with no discount point and no origination fee.
Sounds like a Chafa or county bond program.
damn it.... I only wish I could short the R/E market :cry: :cry:
New Home sales are slow to dead here in Havasu, although the upper end market still seems to be hanging on (3k sq ft Living and above). investors still are building Spec Homes keeping the labor pool going, I don't expect that to last more than 6 months tho. and I think those with more than 2 specs going at one time are in for a few more payments than they bargained for.
The addition market is going good, I seem to be getting more and more garage additions and remodels as people settle in for awhile.
After watching multiple "flip this house" type shows pop up on TV, I can't help but compare the equity bubble of the 90's when everyone was day trading in their spare time.
When school teachers and retirees without any experoiience start trying to buy, and flip real estate to make obscene money its time to run.
Kind of like "flip this tech stock" of 2001-2002
Anyone with an e-trade account and a limited knowledge of how to click a mouse on the buy/sell button could turn stocks for a profit. My how that all changed....
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