Posted on 09/16/2005 8:09:51 AM PDT by Mini-14
Lenders are pushing risky loans with low payments. Desperate home buyers snap them up. Worried yet?
NEW YORK (MONEY Magazine) - Feeling nervous about real estate prices? Who can blame you? Even if you haven't bought or sold lately, the constant debate over whether or not there's a housing bubble is probably making you uneasy.
(Excerpt) Read more at money.cnn.com ...
If I do, I'll let ya know, but Maryland's a little "blue" for me...
The People's Democratic State of Maryland? Way too blue for me even though I live in the reddest county here. Oh, well, it's home to me...
Are there any pitfalls to watch out for with an 80/20 loan fixed rate?
I think home prices are still pretty low where I live (southern Indiana, Louisville Kentucky area). You can get a 3/1 house in a decent neighborhood for less than $150,000 no problem. But if you need/want to live on the coasts, this isn't any help.
"Are there any pitfalls to watch out for with an 80/20 loan fixed rate?"
Pay attention to the APR instead of the published rate. Junk fees can be a big surprise.
No, actually it's often the cheaper way to do zero-down financing. A single, 100% loan will either have PMI, higher interest rate, or both. Doing the 80/20 option often gives a lower payment and less overall interest. Often the 20% second mortgage is a balloon (payment based on 30 years but balance due in 15) but honestly unless you really think you will never refinance or sell in that time, it's a moot point.
What would that be, Frederick County? Allegheny County?
My father lives in the northwest corner of Frederick County. He has at least one old friend who has been to prison for making liquor. We don't really know how the rest of the state got to be the way it is, but it's mostly ascribed to "those idjits down in the city." "The city" is either Washington or Baltimore, or sometimes both, or sometimes just everything between Montgomery County and the Bay.
Oddly enough, though he lives four hours from the water, he still knows how to steam crabs and pick them. Generous application of Old Bay seasoning is pretty much required, or he won't like 'em.
"Way too blue for me even though I live in the reddest county here"
I'm in the reddest precinct of one of the bluest counties in a red state, LOL. It is a patchwork, isn't it?
Carroll County. Frederick County has too many long-distance commuters from the DC area to not shade purple.
Folks in New York will tell you that New Jersey is not worth looking at. Come over and look for yourself. There are a lot of nice little towns in New Jersey.
Q: Why does New York City have so many lawyers, and New Jersey so many toxic waste sites?
A: New Jersey got first pick.
I'll grant you that. There's a cultural dividing line in Frederick County, and it's more or less Route 15. West of it is redder than east of it.
That said, how many Carroll Countians commute to Baltimore? =]
How could you lose your job from making bad loans? Isn't it true that most or all of the loans get flipped over to Fannie Mae, at which point Fannie Mae assumes all of the risk?
Well what I meant really is that if that's the only way you can do business it will eventually dry up as the market changes.
My way gets my referrals flowing which eases (but does not eliminate) problems with market fluctuation.
Interesting. I'll have to look at that book.
When I was growing up, women stayed home with the kids, except for times of difficulty. The father might have something on the side - and families made do with one car, one tv, etc. No birthday extravaganzas at party palaces, etc.
We would save up for things like dance lessons - a rare and special privilage. Kids played outside games like hopscotch instead of inside on expensive game systems.
We now spend two incomes on things one used to do.
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