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My concern is with the government and the push once again to equal opportunity home ownership via the toxic twins Freddie and Fannie...3% down and loose standards are making a comeback and it's an ominous trend. I fear Mel Watts and the FHFA.
One ad does not make a "bubble." Go get a mortgage and then come back and tell everyone how easy it was. You will be the first to say so in years.
Many people are concerned about the economy over the long term. It does run cycles, and if a stormcrow caws long enough, he will be right at some point. Just like a stopped clock is right twice a day.
This is not merely "negative." It is actually pretty crass and cruel:
One can surely reasonably hope that the college tuition bubble will burst, as college costs are out of control. Public and private colleges and universities have run costs so high that it has opened the door for for-profit schools to market overly-expensive "education" that is modeled on selling easy access to overpriced student loans to hopefuls.
But, whether talking about housing or education finance, one can only hope that consumers are making wise choices. Some do. Some clearly do not.
My son got a 3% FHA in a heartbeat 3 years ago. I could easily join him with my 792 FICO score.
The problem is that people who can just meet P+I and tax/insurance are 1 broken HVAC away from abandoning a home and defaulting. Many of the current new construction uses junk materials which have a short life and may cause homeowners to bail out as maintenance starts to eat them alive.
Heaven forbid a slowdown and layoffs occurs dropping high salaried employees on our now stingy unemployment benefits.
We had a solid economy based on education, medicine, and government. Now, we are in the speculative tech area.
I wish good luck to all, but be careful of burying yourselves in debt.
My son got a 3% FHA in a heartbeat 3 years ago. I could easily join him with my 792 FICO score.
The problem is that people who can just meet P+I and tax/insurance are 1 broken HVAC away from abandoning a home and defaulting. Many of the current new construction uses junk materials which have a short life and may cause homeowners to bail out as maintenance starts to eat them alive.
Heaven forbid a slowdown and layoffs occurs dropping high salaried employees on our now stingy unemployment benefits.
We had a solid economy based on education, medicine, and government. Now, we are in the speculative tech area.
I wish good luck to all, but be careful of burying yourselves in debt.
There's a huge gulf of difference between people who choose FHA because they don't have 20% to put down on a house and people who are too broke to keep up basic repairs.
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There's a huge gulf of difference between people who choose FHA because they don't have 20% to put down on a house and people who are too broke to keep up basic repairs.
Basic repairs is one thing. A/C compressors and roofs is another.
Basic repairs is one thing. A/C compressors and roofs is another.
I bought a new gaspack 12 years ago. It has years of service left in it.
The upper zone is 22 years old, and shows no symptoms of needing to be replaced.
Bought a roof last year. It will last 30+ years.
It isn't like you buy this stuff every month.
Basic personal finance and budgeting allows for these expenses.
But, some people overspend and take the slack out of the budget by buying more than they can afford. That is an error, for sure.
IF you buy a home you can afford you should be OK. I put down a good chunk on my recent purchase and my monthly is less than it would cost to get a decent one bedroom in the Raleigh/Durham area.
If I can't make my payments the bank will kick me out but by the same token if I couldn't pay my rent the landlord would give me the boot too.
Isn't it all about being a wise purchaser? My husband and I have always purchased a home that we can carry on only one salary. It's always worked for us - so when we need a new HVAC unit, or want to upgrade flooring, we have the means to do so. Not enough people thin that way, though.
Isn't it all about being a wise purchaser? My husband and I have always purchased a home that we can carry on only one salary. It's always worked for us - so when we need a new HVAC unit, or want to upgrade flooring, we have the means to do so. Not enough people thin that way, though.
Exactly.
If you need both salaries, plus overtime pay and bonus projections, and a gift from Grandma for most of the downpayment because you have no cash, you are overreaching, IMO.
I think there is some difference here we should acknowledge between credit worthiness and the appraised value of a home. When you say getting a mortgage is easy that could mean two things, it's easy to fill out all the paperwork and forms or it's easy to qualify (meet income requirements, general creditworthiness). Person A has a good job and credit and would stay within their means so it's easy to get a mortgage for the house they pick vs, I want to live outside my means so I have to justify, spin facts, move around bank balances, whatever tricks people use. Then it's harder to get a mortgage than it was in 2006.
Here is my view:
Housing bubble was two issues, housing market increasing at an unsustainable rate, combined with lenders willingness to provide loans for overpriced properties. Combine that will low documentation requirements and you get people paying too much for a house they can't afford.
So as long as the checks and balances of the home mortgage system don't go by the wayside like they did in the housing bubble, then things should be ok.
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