U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-06-2018, 04:47 PM
 
Location: Oceanside, CA
1,738 posts, read 827,032 times
Reputation: 3894

Advertisements

Quote:
Originally Posted by bobspez View Post
Good time to buy a house. Interest rates are below 5% and you can just put 5% down.
And then you're paying PMI. No thanks. Talk about a toilet that just keeps flushing wads of cash until your LTV gets to the point that you might be able to get them to stop taking all that free money from you.
Reply With Quote Quick reply to this message

 
Old 07-06-2018, 05:02 PM
 
608 posts, read 281,196 times
Reputation: 1932
Quote:
Originally Posted by ericp501 View Post
My mortgage broker said back in 2006-2007 the people doing appraisals would literally just drive up to the house, take a photo, and never actually look inside and just write whatever number seemed appropriate on the paperwork. That kinda thing doesn't happen anymore.. Just another example of some of the differences between then and now.
We sold a house last November. The appraisal was a drive-by because we waited for the appraiser to show up expecting them to want a look inside -- never happened. The buyer needed an appraisal of $384K to get his loan and Shazam!, it came in at $386K.

As the seller, who am I to complain? LOL
Reply With Quote Quick reply to this message
 
Old 07-06-2018, 05:25 PM
 
10,700 posts, read 20,119,835 times
Reputation: 9854
Quote:
Originally Posted by jnojr View Post
And then you're paying PMI. No thanks. Talk about a toilet that just keeps flushing wads of cash until your LTV gets to the point that you might be able to get them to stop taking all that free money from you.
I bought a house a decade ago with 5% down and the rate was 5.75%. Now I have over $120k in equity and don't pay any PMI. My rate is 3.12%. I have a 15 year loan that is $300 less a month than the rental next door.

Just think had I listened to you back then I'd still be renting and out six figure$.
Reply With Quote Quick reply to this message
 
Old 07-06-2018, 05:26 PM
 
10,700 posts, read 20,119,835 times
Reputation: 9854
Quote:
Originally Posted by TimAZ View Post
We sold a house last November. The appraisal was a drive-by because we waited for the appraiser to show up expecting them to want a look inside -- never happened. The buyer needed an appraisal of $384K to get his loan and Shazam!, it came in at $386K.

As the seller, who am I to complain? LOL
They are mostly done with online data these days under certain price points.
Reply With Quote Quick reply to this message
 
Old 07-06-2018, 06:08 PM
 
1,461 posts, read 331,260 times
Reputation: 1667
Know who still uses stated income? Credit card companies. And they've got the highest interest rates of all!
Reply With Quote Quick reply to this message
 
Old 07-06-2018, 06:29 PM
 
1,481 posts, read 591,958 times
Reputation: 3764
My daughter just bought a house in Reno. No PMI. 5% down through a credit union. She wanted to get an FHA with 3% down, but the mortgage through the credit union was $250 per month cheaper.

Quote:
Originally Posted by jnojr View Post
And then you're paying PMI. No thanks. Talk about a toilet that just keeps flushing wads of cash until your LTV gets to the point that you might be able to get them to stop taking all that free money from you.
Reply With Quote Quick reply to this message
 
Old 07-06-2018, 09:29 PM
 
4,318 posts, read 5,268,236 times
Reputation: 4214
Quote:
Originally Posted by C2BP View Post
Really??? Fitch Ratings named Las Vegas the most overvalued housing market in America last month.


Real estate in those desert cities and regions listed above are pure scam. No one buys a house to live there, only to speculate. It's the number one scam in America!!! Who has been buying that worthless desert real estate since 2009? Speculators mostly who will run for exits as soon as the music stops playing.

Try to go to Vegas or Phoenix today or tomorrow.....it's literally the hell on earth with temps over 110F. How mentally insane do you have to be to purchase overinflated real estate in Las Vegas or Phoenix today????
You couldn't be further from finding the truth if you knew where it was and walked the opposite direction. The Vegas housing market is booming precisely because people like me, in Oregon, want to escape high income tax states and save money by moving to a cheaper market. The median house is only $280K in Vegas and even looking well above that for me, I'm still going to get something I find to be great for $1.5M that I WILL live in, obviously, that I couldn't afford in a place like California. Another of my friends from LA finally had enough of CA income taxes and liberal politics and left for Vegas, too.

There is nothing overpriced about the Vegas housing market, it was well due for a correction upwards, and the assumption that the income made by workers has anything to do with the larger housing market is completely incorrect in a place like that. There are tons of people just like me, and like my friend, who don't depend on the local economy whatsoever for our income and by living in a no income tax state, we actually get richer, not poorer, because we don't need a wage job. For those kinds of people, Vegas is a very affordable market and that has driven housing prices up fast. The market still hasn't returned to pre-recession levels though it's certainly getting closer.

Don't try to compare a place like Vegas, which is the entertainment capital of the world with 300 days of sunshine and tons of people who want to live there, to some podunk town in Anywhere, America where the only way people can afford a house is because of the local economy. Vegas doesn't play by those rules. The people buying houses in Vegas are the same people like me moving there from somewhere else.
Reply With Quote Quick reply to this message
 
Old 07-06-2018, 10:00 PM
 
Location: Prepperland
13,116 posts, read 9,202,467 times
Reputation: 8988
If money is a medium of exchange to facilitate trade when barter is insufficient, then
do you ever wonder who has the power to create new money?
Government?
Banks?
Producers and workers?
. . .

Why would trade in your labor and property be constrained by the sum and value of scarce money tokens you have no control over?


Better not think about that. Move long. Nothing to see here. We are the great and powerful . . .
Reply With Quote Quick reply to this message
 
Old 07-07-2018, 02:14 AM
 
723 posts, read 399,195 times
Reputation: 1079
Quote:
Originally Posted by JonathanLB View Post
You couldn't be further from finding the truth if you knew where it was and walked the opposite direction. The Vegas housing market is booming precisely because people like me, in Oregon, want to escape high income tax states and save money by moving to a cheaper market. The median house is only $280K in Vegas and even looking well above that for me, I'm still going to get something I find to be great for $1.5M that I WILL live in, obviously, that I couldn't afford in a place like California. Another of my friends from LA finally had enough of CA income taxes and liberal politics and left for Vegas, too.

There is nothing overpriced about the Vegas housing market, it was well due for a correction upwards, and the assumption that the income made by workers has anything to do with the larger housing market is completely incorrect in a place like that. There are tons of people just like me, and like my friend, who don't depend on the local economy whatsoever for our income and by living in a no income tax state, we actually get richer, not poorer, because we don't need a wage job. For those kinds of people, Vegas is a very affordable market and that has driven housing prices up fast. The market still hasn't returned to pre-recession levels though it's certainly getting closer.

Don't try to compare a place like Vegas, which is the entertainment capital of the world with 300 days of sunshine and tons of people who want to live there, to some podunk town in Anywhere, America where the only way people can afford a house is because of the local economy. Vegas doesn't play by those rules. The people buying houses in Vegas are the same people like me moving there from somewhere else.
Lol....Las Vegas is a ghetto in the middle of the desert. That market is not booming because of you, those Vegas scammers need unsuspected fellas like you to unload their worthless poorly build desert house. Real estate is a number one scam in Las Vegas but unfortunately you don't know it yet. You will learn it the hard way once you are left out to hold the bag

“We are in a big, fat, ugly bubble.” – Donald Trump – 9/26/16

Good Luck!!!
Reply With Quote Quick reply to this message
 
Old 07-07-2018, 11:30 AM
 
Location: Silicon Valley
2,747 posts, read 1,209,866 times
Reputation: 5047
Quote:
Originally Posted by ericp501 View Post
My mortgage broker said back in 2006-2007 the people doing appraisals would literally just drive up to the house, take a photo, and never actually look inside and just write whatever number seemed appropriate on the paperwork. That kinda thing doesn't happen anymore.. Just another example of some of the differences between then and now.
A great point. The loan industry is a lot more disciplined this time around. I recall when I moved out here there was a guy in the factory that made like $20 an hour that had 7 California homes and he kept living off refi proceeds.

Appraisals in general are still rubbish, but at least their crossing the t's and dotting the i's when they magically make homes worth just above the loan amounts. Pressure from services like Zillow undoubtedly have helped as well.

This time it's the consumers that are nuts and a money supply that is just so cheap and available that it's pushing prices to an amazing high. Figure a 30 year $1M loan at 4% will cost you $718K of interest whereas the same loan at 6% will set you back $1.158M. That's a $400K discount if you can lock in now.

Either way that $1.2M home is still costing you $1.918M at 4% or $2.358M at 6%. Or, if you can swing the payments, it's just $1.443M at 3% on a 15 year. (6905.82 on the 15 vs 5,995.51 on the 30 at 6%) If you look at just the monthly payment, paying more doesn't seem that big of a deal. I know people that have tried to buy homes they know they can't afford just for the school district while their kids are in school. The understanding is that while they'll burn all of their cash on crazy payments, the market will continue to appreciate and they can sell for a profit once the kids are done with school.

Plus, at least here, you have outside money coming in from overseas and domestic companies playing in the residential real estate market in new ways. Our real estate market is setup for people to bid against people. Not to vie people against corporations and foreign investments. Once that's locked in, then prices will go artificially higher because it's no longer a home but a viable investment option for wealth funds. As more "lower tier" cities get comfortable investors, those cities are seeing a massive influx of funds going into them. First commercial and multi-unit and later SFRs. It's like a stock that starts getting analyst coverage and later is picked up by the S&P 500....the price goes higher as there's more buyers.

So I think the lending practices are still fairly solid, though decay has begun. It's the buyers that have changed this time.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top