Higher Down Payments not answer (payment, rates, deposit, creditors) - Personal Finance -debt, loans, credit cards, banks, insurance... - Page 3 - City-Data Forum

MadManofBethesda · 04-03-2011, 08:43 PM

Quote:

Originally Posted by Norm Barnes

You are right. State Income PA at 3.07% or thereabout would be another $2400 for $80K or more.

Once again, you are leaving out a pertinent part of your calculation. Many cities in PA also assess an income tax - in some cases as much as if not more than the state amount. Isn't Philadelphia's rate almost 4% on top of that 3.07%? And Pittsburgh is an additional 3%, no?

When I lived in Maryland, I was paying about 8% total in state and local income taxes. That is one of the reasons that I moved out of the state on the day that I retired last year.

Norm Barnes · 04-23-2011, 01:31 AM

Been away from mortgages for a couple of years now and am very curious as to how major players report their delinquency on Mortgages. The time I was in the Industry we judged it based on how many days past due - 30, 60, 90 etc. to non-performing and in foreclosure. I also knew then it took many good performing mortgages to offset the loss incurred by a non-performing mortgage. With all the adjustments by refinancing etc. You have to wonder just how bad the situation might be now. Ironic part about it is that most problems even this severe is cured by added lending in order to drive down the delinquency rather than pulling in the horns.

texdav · 04-23-2011, 05:14 PM

Basically since the governamnt is not goig to guantee loans except maybe in rare cases;alot of going to change. Rememeber that Geithner said that the intent is do get back to more histoical level of 65% owning homes.That is much more likely to mean more than just having some skin in game form get go but actaully lokig at debt to income. I personally think it could be much less in coming deacdes than that with the numbers not quailfying for some time or wanting to in many instances.

Norm Barnes · 04-24-2011, 06:53 AM

Texdav

Thanks for input!! You know my greatest concern is that the geniuses can't see the fundamental cause of the mortgage debacle. If I were on the street corner selling lemonade for $5.00 a glass I wouldn't have many takers but if I were giving it away I'd be trampled. Here is what I am saying from a view of 1969 - present. Mortgages were the crown jewel of a banking institution. It was handled with consideration of its long term income and with a degree of caution since you will live with it in some cases for 30 years. Are you married? You know 30 years is a long time. If you are careless a misstake is costly and takes several well performing loans to offset the lost. Basically Banks squandered money on technique rather than substance. I mean find a way to generate a loan without employing anyone to do the job. Enter Mortgage by credit score interpretation. Do you know a credit card could be granted to a person who is unemployed? Easy enough - they have a good credit score. Vomit - Vomit!!!! Banks married alot of customers who either will divorce them or take them to the cleaners. Its all because of expedient and cost efficient lending rather than intelligent lending. Now our solution is to be more cautious -- how by increasing the credit score requirements. The blind leading the blind. To be an expert today you need two qualities: 1) Know how to shoot the ----; 2) Have an excellent imagination. This mortgage problem was not a lifelong problem it occurred in the relatively recent past. I have no idea what they think the solution is but I have every confidence that they will ---- it up. Maybe credit scores should be used in matching couples also -- you know I believe someone out there is working on this right now.

Norm Barnes · 04-29-2011, 02:51 AM

ACS STARTS NEW CAMPAIGN!!!!! The American Cancer Society will start a new campaign embraced by CVS, Walgreens, Rite Aide and Walmart. These target supporters embrace a shopping audience of millions. Match Packs will be generously given to everyone who buys a pack of cigarettes or any type candle product. The kickoff slogan appearing on the matchbook cover will be: "Stop!!! Do it for yourself. Do it for your family. Do it for life". An Ad will also run as a public service announcement. It will show a young boy back to camera. The announcer begins: "Johnny wants to grow up just like Daddy". The camera changes angle and runs a direct shot of Johnny. Johnny has a Tee shirt on and Cigarettes rolled up under one of the sleeves. The announcer continues: "And he did!" Another slogan to be used goes like this: "Its cool to smoke; dead cool!"

sonarrat · 04-29-2011, 10:57 AM

The Fair Isaac Corp. is the biggest scam in the financial industry in the past century. The idea that the world's biggest financial companies automate their underwriting based on a proprietary, secret formula is beyond absurd. I can't even fathom how the idea ever caught on. If we went back to manual underwriting, it would have nothing but positive consequences for the economy. It would create jobs, foster better and safer lending practices, and make our packaged debt products more attractive to investors.

Norm Barnes · 04-30-2011, 08:06 AM

I agree. Fair Isaac will be shown be accurate in forecasting the imminent future but not over a term as lengthy as a mortgage. Bankers way of placing people on the unemployment line.

Norm Barnes · 05-18-2011, 05:10 AM

FHLMC commonly referrred to as Freddie Mac is offering assistance if you purchase a "Homesteps Property". The assistance is 3.5% towards closing costs. Your Realtor gets a bonus also of $1,200. I see a light here and its all green. Maybe they have woke up and smelled the coffee -- Wawa Coffee. I have some concerns about the glut of homes being liquidated. The tax revenue recovered and returned to municipalities will be no different then in the refinance hay days. Municipalities waste money and seldom return unused revenues to anybody particularly the taxpayer. The revenue trackers in municipalities have to be monitored now for waste or it won't get any better. I believe school districts should be the starting point.

Norm Barnes · 05-23-2011, 11:38 AM

A place for it where the sun don't shine. What money saved with the financial Fiasco we are in. It has its place in small ticket items but not for a house and 30 years. Why not select a President and our congressman by credit score? Why not select your wife by credit score? Credit scoring is overrated and the biggest con since Houdini. Its expedient and cost effective. How about if your credit score is below a certain amount you are eliminated? How about we eliminate credit scores in housing it would be like bringing the Berlin Wall down.

dazzleman · 05-23-2011, 06:42 PM

Quote:

Originally Posted by sonarrat

The Fair Isaac Corp. is the biggest scam in the financial industry in the past century. The idea that the world's biggest financial companies automate their underwriting based on a proprietary, secret formula is beyond absurd. I can't even fathom how the idea ever caught on. If we went back to manual underwriting, it would have nothing but positive consequences for the economy. It would create jobs, foster better and safer lending practices, and make our packaged debt products more attractive to investors.

The credit score is a tool that was misused. It should be one thing that is considered, among manner. It really doesn't matter how high your credit score is if you're borrowing more than you can afford to repay based upon your income. And the whole system is designed to keep people forever in debt.