Posted on 07/06/2006 6:40:55 AM PDT by Hydroshock
>I was spending $80 a month on haircuts for my boys. NOT.<
Try that on a GIRL. Thank goodness my little princess has very, very long hair (LOL).
I did, however, purchase a set of clippers for the Cocker Spaniel. No expensive trips to the groomer in our house!
(of course, the dog has a crew cut, but she doesn't mind a bit)
So how can a rise in interest rates affect fixed rate loans? You might suffer an opportunity cost if you have invested in long-term fixed rate loans and could get a higher rate elsewhere or suffer a real loss if inflation jumps to much higher levels, but that's it.
For me, it would take almost as much courage to clip the dog as to cut a daughter's hair! Fortunately, our pooch doesn't need clipping, but I'd definitely learn. We used to have an adorable poodle mix (may she R.I.P. the little darlin') and it was truly a pain, not to mention expensive, trying to keep up with her grooming.
I hate, HATE these "mortgage vultures", that prey on the undisciplined.
They serve a purpose.
Credit is for big boys and girls. If you don't take it seriously, you'll learn a hard lesson. Maybe those around you will learn something, too.
It may be that their sole purpose in life is to serve as a warning to others.
All you are buying is a piece of paper entitling you to pay the government 3 or 4 thousand dollars a year. Unless someone else offers to pay more.
Viva La Kelo
Buy a few acres. Zone 1/3 acre for residential. Build a house. The rest is personal open space, no?
Unfunded Social Security liabilities are $71 trillion over the next 50 years.
What's another trillion and a half?
Don't get me started.
No. In many places Zoning changes do not happen unless you know somebody or have really expensive lawyers. Getting permission to build a house even on property zoned for such is about as likely as the zoning change. Travel around the country and see how bad it is in some places.
Debt derivatives: the only 500-year floodplain that floods every five years.
Why would traveling enlighten one to zoning issues? I've lived up and down the East Coast. That doesn't mean local zoning ordinances are learned.
If property drops to a few hundred an acre, I'm sure zoning will become more workable. Everyone needs to make money. Property and building will be an incentive.
True. Property value drops will spark a lot of reform.
I hope you are right. I'm getting excited thinking about it :)
LOL!
I've been going to Google news every three days or so and searching "foreclosures".
It is interesting.
You remind me of those stupid jerks that were telling everyone the market was not looking very stable back in September of '29.
Go peddle your Bush hating economic pessimism somewhere else
/sarcasm
>>Everyone in professional investment management believes that the government will end up backing all mortgage-backed securities, regardless of the financial condition of the issuing GSE's. They are considered the equivalent of AAA-rated Treasury instruments. So this article is bit of a red herring - if the government ever refused to shore up the MBS market in a crisis, it would be equivalent to touching off another Great Depression. They wouldn't dare not to do it.<,
Wonder if that would impact taxes?
He asked for fact you insult him?
I'm debt free to the point that I don't even own my home any more. I rent. And my rent is $1600. To buy the house three doors down (same quality and reverse floor plan), my monthly payment would be approximately $3,700, including taxes.
Something is fishy in the Seattle suburbs market when you compare those two dollar amounts.
This time is unique. here are some things that were not there during other cycles:
1. A flippers mentality (housing as an investment)
2. Creative loans
3. Fifty year mortgages
4. >50% of your monthly income allowed for a mortgage payment - even on a "teaser" rate.
5. New bankruptcy laws
6. Massive refinancing for "non-home-related" items.
It is going to be interesting to watch the loans reset in the next 18 months. We are seeing some of it now, but so far we are like the guy during the tsunami that walked out into the newly exposed ocean bed and said, "Hey look. It looks like the water's starting to come back".
Interesting times are ahead.
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