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Old 11-13-2013, 06:03 PM
 
2,706 posts, read 2,781,603 times
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All mortgages should be 20% down ! Those low down loans are what got us into the housing bubble , letting people that had no business owning a home, buy something that they could never afford. People today are just like the government, forget what you can afford and just borrow, borrow, borrow. This is why folks today that are trying to retire, can't, because they re-financed to "get cash to spend on anything you want" and now they can't afford the payments and have nothing left to live on. If you don't have your house paid off by the time you retire, you are in for some hard times.
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Old 11-13-2013, 06:19 PM
 
3,333 posts, read 7,313,350 times
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Quote:
Originally Posted by Nodpete View Post
All mortgages should be 20% down ! Those low down loans are what got us into the housing bubble , letting people that had no business owning a home, buy something that they could never afford. People today are just like the government, forget what you can afford and just borrow, borrow, borrow. This is why folks today that are trying to retire, can't, because they re-financed to "get cash to spend on anything you want" and now they can't afford the payments and have nothing left to live on. If you don't have your house paid off by the time you retire, you are in for some hard times.

There is no 100% financing today. And. IMO, loans with less than 20% down are backed with risk-appropriate mortgage insurance, it's not "built into the rate" or avoided with 500-fico 80/20s.

You should be happy with the QM procedures in a few months, though. which will more stringently enforce the Affordability-based guidelines.

http://files.consumerfinance.gov/f/2...tr-qm-rule.pdf
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Old 11-13-2013, 06:36 PM
 
4,549 posts, read 11,604,089 times
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Quote:
Originally Posted by Nodpete View Post
All mortgages should be 20% down ! Those low down loans are what got us into the housing bubble , letting people that had no business owning a home, buy something that they could never afford. People today are just like the government, forget what you can afford and just borrow, borrow, borrow. This is why folks today that are trying to retire, can't, because they re-financed to "get cash to spend on anything you want" and now they can't afford the payments and have nothing left to live on. If you don't have your house paid off by the time you retire, you are in for some hard times.
The low down payment loans that are available today (and back then for that matter) are not what got us into the housing bubble. The mortgage crisis stemmed from a load of loan products that are no longer available today.
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