97% lending for home loans

Discussion in 'Off Topic' started by Mountainman, Dec 14, 2008.

  1. Mountainman

    Mountainman Active Member

    yes -- as seen on tv

    do not think that offers such as this

    are going to get the USA back on track

    what the heck kind of a THING is going on ?

    we should take their cars from them and make them ride motor bike THINGS
    Last edited: Dec 15, 2008

  2. Happy Valley

    Happy Valley Active Member

    The horror. You mean I have to come up with 3% down payment?
    I want one of those no money down loans where I get the keys and an instant $50K cash in home equity on the day of closing.
  3. Mountainman

    Mountainman Active Member

    hang in there

    hang in there HV

    loans as per your request
    should be available before long

  4. Happy Valley

    Happy Valley Active Member

    Well I joke not and that's what's done many parts of CA (and AZ,NV,FL) in then, isn't it?

    I caught a 60 Minutes segment several months ago where some former (cough)
    home owners, think it was up around Sac., were interviewed about the house deal they'd struck back a couple of years prior. They got in with no down, $50K in cash the day of signing and the keys. Of course, they said they blew the 50 on a new car and in-ground pool the first month, so that was gone too.
  5. Mountainman

    Mountainman Active Member

    yes - Happy V

    I realize that all of this foolish lending is not a joke -- hard to believe -- but no joke

    over the last ten years or so -- it seems around three or four times
    when I would see and talk with a neighbor down the old dirt road
    he would state -- you won't believe how much my house is worth now
    before all of his refinancing ventures were over
    he had pulled out close to 7 hundred thousand dollars
    today his house is worth around 4 hundred at the most

    I think that there are two to blame in this case
    neighbor -- who it appears seemed to make some dumb money loan moves
    and the banks -- greedy lenders

    and who is expected to bail these two misfits out of this mess -- US -- yes -- US

    all of these type of excessive lending of monies
    will have to all be washed away in time

    seems the main THING should be at this time -- not to be repeated over and over again

    they should all take a long ride on those THINGS
    Last edited: Dec 15, 2008
  6. Skyliner70cc

    Skyliner70cc Active Member

    A lot of this dumb lending and borrowing is what caused home prices to rise so quickly. The average selling price in my city is now 309,000 dollars (this is after a 17% decline in home prices). That's a crazy amount of money for a home and a big noose to have around your neck mortgage wise for 30 years. Just 12 years ago, that 309,000 dollar home was only 135,000 dollars.
  7. Mountainman

    Mountainman Active Member

    ride that THING -- seems to fit !!!

    yes -- it would not bother me if they devalued my home
    right on down to what it's truly worth

    my wife and I are also willing to pay way extra to buy American
    I posted that statement a while back in another thread
    seems that many wish to cry about it -- jobs leaving

    but -- as stated by them
    they don't want to pay the higher prices for goods made in the USA

    what good is it to talk the talk
    if not willing to walk the walk ?

    ride that THING -- seems to fit !!!
  8. Skyliner70cc

    Skyliner70cc Active Member

    Great point. The same folks who get laid off in a USA manufacturing industry shop at Walmart which sells mostly China made goods. In fact, I recall a TV news crew interviewing a woman shopping at a Walmart who was laid off from a textile company....the irony is very sad.
  9. HoughMade

    HoughMade Guest

    Not that long ago there were lenders loaning 125%...maybe they are still out there- doubt it.

    Also, seems like the "interest only" loans were a bad idea.

    Here I sit in a modest house with a modest mortgage with a decent job and no car loans while my friends who make what I do went and got the big house and new cars every other year because they figured that was normal for our income bracket....all of a sudden I'm not looking like a cheapskate....I'm looking smart.
  10. arceeguy

    arceeguy Active Member

    Yes, in some areas housing prices ran up way too fast. In my area, housing prices were going up 8-10% a year since the mid nineties. When did I decide to buy a larger house? 2005 - probably at the peak of the market. I really didn't want to buy, but the better half did not want to live in our first house, which was less than half the size of our current home. But I had a sizable down payment, and got a regular old 30 year fixed mortgage. o "creative financing" needed for me to buy the house she wanted. Even with the down market, I am still probably owing less than what my home is worth, but even if I were "upside down", I would still continue to pay the mortgage and not be a scumbag and default.

    I don't think it is right that people who got themselves in deep financial doo doo are the ones that the govt wants to help by "renegotiating" their loans. Hey - what about the millions of other people like me? You know, the ones who were responsible and chose to live within their means? I took a "paper loss" of tens of thousands on my house, but because I am paying on time I don't get any help? This seems to be the problem with govt lately - they reward bad behavior at the cost of the ones who followed the rules of common sense. This goes for "Wall St." and "Main St." alike.
  11. Mountainman

    Mountainman Active Member

    they would do everybody a big favor

    if they would outlaw variable loans

    seems the banks wish to cram these down out throats
    the bank a few years back almost insisted that I take out a variable
    I told them heck no more than one time
    got a fixed
    wondering -- do loan officers get a kickback on variables ???

    if so -- they can ride that THING
  12. Skyliner70cc

    Skyliner70cc Active Member

    Don't all blame the banks. It takes two to tango. My physical therapist mentioned she bought her first home. She didn't know what her interest rate was on her loan, she didn't know how much she paid in closing costs. All she could recall that she got a second loan form another bank to pay her closing costs and that she she could afford her first home.
  13. SimpleSimon

    SimpleSimon Active Member

    My parents bought a 65 year old house on 4.5 acres of land, three good wells and a creek, for $10K in 1967. My brother bought it from them in 1985 for his family. built them a retirement cottage on a 1/2 acre plot next door. In 1985 that house, 18 years after the folks bought it (with substantial remodelling and an addition that doubled its footprint and tripled its usable sq footage) was valued by the tax authorities at $780K. Today the assessed valuation of the house and land is $4.73M!

    Yes, million. It is utterly insane.
  14. Skyliner70cc

    Skyliner70cc Active Member

    Simple Simon,
    My parents mortage on their home that I grew up in was less than 300 dollars/month. They paid off the home 20 years ago and when they sold it, they were paying 550/month in property tax. They were financially forced to sell it and move 1000 miles South to Florida so they could afford to live on their modest retirement pensions and Social Security. Their tax bill is currently 60 dollars/month and they live in a much nicer home that cost about 1/3 as much of what they sold their New England home for.

    I can only imagine the taxes on 4.73 million dollar property.
  15. Mountainman

    Mountainman Active Member

    I'll just ride my THING the way it is

    yes -- one heck of a hard time with taxes like that
    that's about what my friend pays
    just for property taxes

    the County Tax Assessor raised my property taxes three times in one year
    I called him on the phone -- trying to work something out
    he said that he could always just come out and look
    and if I trully thought that my home was worth less that 175 grand
    it may work out for me --- told him --- no thanks

    I'll just ride my THING the way it is
  16. Mountainman

    Mountainman Active Member

    update -- still falling sme more

    his house is worth even less today -- 3 hundred maybe -- 350 ??

    I test water wells for gpm
    usually tested when someone buys a house in the country
    making sure they will have enough water so as to live on
    home sells are picking up some
    and prices are down
    good time to buy in so calif -- if you have a job and money !!

    Last edited: May 12, 2009
  17. arceeguy

    arceeguy Active Member

    Maybe I'm nuts, but.....

    For all of these "sub prime" risky loans with little/no money down, aren't they all insured against default?

    If you put less than 20% down on a home, you are required to purchase PMI (Private Mortgage Insurance) by the lender. This does not protect you, it protects the lender against default. So whyizzit the PMI didn't pay the banks for all of the loans that are defaulting? Am I missing something? (I am not a mortgage/banking expert - but I did stay at a Holiday Inn express last night.....)
  18. KilroyCD

    KilroyCD Active Member

    I thought I was nuts...

    When I bought my house in 2003, I bought it with a zero-down loan, zero points and a 30-year adjustable rate mortgage that was fixed for the first five years at 6%. No PMI, and a 2% cap on the interest rate change. At the conclusion of year five, I got a notice of a rate change by my bank. It went to 4.5%. At the conclusion of year six, I got notice of another rate change, and starting in June I'll be paying 3.5%.
    I keep asking myself, "When will the honeymoon end?"
  19. fasteddy

    fasteddy Member

    My son tests hazardous waste sites in New England and when I call him I always have to ask whats the worst one this month.
    The last one was testing basements 10 blocks away from the site.They were too unsafe to be in and the house it's self wasn't much better.
    Who helps these people out?You can bet no one but don't be late with the payment.
    This is one of many he sees.If the Government was to look after it, large parts of the US would be waste land.
  20. Mountainman

    Mountainman Active Member

    don't remember that PMI Thing

    I went to real estate school back in 1989 -- aprox year
    they covered lending a little naturally
    I don't remember anything said about PMI
    just another THING -- from where I sit -- thinking what a joke it is !!!

    if one is in need of PMI insurance -- they probably do not need to be buying a home ??

    maybe man has just gotten to the point
    where he has over thought himself
    the guy or Lady who thought this PMI insurance up -- may have thought it was great
    the ones who think up new taxes constantly -- get some brownie points !!

    too many concerned only with their own greed -- no regard for the welfare of others

    oh no -- there's that welfare word -- free money for many -- who thought that up ??
    meant to be a good THING originally I would think
    but just as many new government THINGS thought up and put into action
    got out of hand in time -- abused by many -- hard to turn back the wheels of time !!
    sure glad that I have some monies left so as to donate !!!

    ride that MB thing