Posted on 08/31/2006 5:26:52 PM PDT by Mini-14
"I've found this scenario to be wildly overblown and the dooms day predictions to be without merit"
Not true in So. Calif., not only are prices going down but people with ARMs on average homes are getting hit with increases of $450-500/ month in their payments. They can't sell because current market is $50k+ below their mortgages and forclosures are increasing.
Southern California does not a national trend make.
Further, with the "massive decline" in real estate sales the media has touted for July, North Carolina saw a 7% increase.
And what's that?
While you might be opposed to it, a three-year PPP could have easily yielded three points. Try that on a couple of $600,000 deals in one month.
Good points, I suppose. I'm not that deep into the plastic for it to work for me, and the annual mortgage interest is too low to be a viable deduction (nearly paid off).
Well, that's the way to do it. But, sometimes, people do the best they can with what they have, and if you do it right you can set yourself on a much better financial course.
If you plan on keeping your house, or your property value isn't growing at an extraordinary rate, good idea. For those in areas where the property values were skyrocketing, and they were planning on flipping, it made sense.
"Southern California does not a national trend make."
No but hen 12%+ of the nations economy goes on it's head you are going to feel it.
Call me older fashioned. We're 3 years into a 15 year fixed. And we were about 40+% down on the refinance.
That's the way my Dad did it when we were kids.He had the family homestead (located in an upper middle class suburb of Boston) within 8 years of having bought it while supporting 4 kids and our stay at home Mom.
He was most assuredly a child of the Depression.
tabloid garbage in business week. What is next, Nicole Richie starving herself and how that is bad for the economy?
This is garbage. If Business Week is reporting tabloid news you should invest or do the exact opposite.
A little more: With the max PPP, IndyMac usually had the best yield spread. Still, check the daily rates - you might do better with WaMu or Countrywide.
Really? Why don't you just link me up to prove what you say...I think you don't know sh**
He's totally correct-IF-your credit was good, it was in 2003 or 2004, and you had under 80% loan-to-value with verifiable income.
A mere 20-50 dollars in extra principal can take a lot off the back end of the mortgage as well, and thankfully, that is something I have done from day one.
If I had it to do over, though, I would have looked far harder at the 15 year fixed rate than I did. Instead, I went with the 30 yr with no penalty for early payout, and expect it will have taken 22 years when done (if all goes well).
The other factor is that I bought about two years after a local housing bubble burst, at one third the former selling price of the house.
Frankly, to have done it right, I could have bought a block of 4 townhouses for less than my primary residence, and had I done that instead, would have doubled my initial investment and paid for my house.
Live and learn.
No matter where you start pick a goal and have a plan (and a plan B) and you will get there.
ARMs allow people to purchase when they don't have a leg to stand on.
I agree. My in-laws learned the ARM lesson years ago when they lost their house.
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