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Old 09-25-2010, 03:45 PM
 
Location: Casa Grande, AZ (May 08)
1,707 posts, read 4,356,852 times
Reputation: 1449

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Ok - got sucked back in! Mainly to confirm something - as for the assumable FHA rates ( I have FHA loan), that assumability is ONLY for the balance left on the existing loan, correct? So if we all do get someday lucky enough to have rising home values, the new buyer (in order to purchase the house from us using the existing loan) would have to have enough cash to cover the difference, or get a second loan, correct?

I.E., my loan was originally 145K, now bout 140K, IF for some reason I could sell my house for 200K today (just talkin!) the new buyer would have to come up with 60K right? They couldnt get a new loan for 200K at my rate...?

If Im thinking this is right, the assumability isnt all that great a thing....

 
Old 09-25-2010, 05:25 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,612,591 times
Reputation: 2201
Quote:
Originally Posted by sh9730 View Post
Ok - got sucked back in! Mainly to confirm something - as for the assumable FHA rates ( I have FHA loan), that assumability is ONLY for the balance left on the existing loan, correct? So if we all do get someday lucky enough to have rising home values, the new buyer (in order to purchase the house from us using the existing loan) would have to have enough cash to cover the difference, or get a second loan, correct?

I.E., my loan was originally 145K, now bout 140K, IF for some reason I could sell my house for 200K today (just talkin!) the new buyer would have to come up with 60K right? They couldnt get a new loan for 200K at my rate...?

If Im thinking this is right, the assumability isnt all that great a thing....
Correct. The buyer would take over your loan at then current balance and would have to make up the difference somehow (cash or 2nd loan). Here is a discussion of the pros/cons:

http://www.washingtonpost.com/wp-dyn...021806648.html

Last edited by rjrcm; 09-25-2010 at 05:38 PM..
 
Old 09-25-2010, 05:42 PM
 
Location: Kalamalka Lake, B.C.
3,563 posts, read 5,396,395 times
Reputation: 4975
What blows me away looking at housing prices for solid looking homes in Reno, Flagstaff, Utah, and a few areas with minimal problems is that it costs 250,000 to build a home on the level of these just in materials, and they're on the market for less than an apartment rental! (i.e. payments of 300 or 600 a month) Ouch!
i.e. the price of fittings, copper, plastic pipe, good thermal windows and pre-hung doors and lumber/plywood have NOT come down. And let's not talk about permits, inspections, and engineering and design fees.
 
Old 09-25-2010, 06:29 PM
 
Location: Anchored in Phoenix
1,942 posts, read 4,582,128 times
Reputation: 1784
Very nice. But Reno and Flagstaff are relatively small towns without great income-producing jobs for most potential buyers. The key question a fence-sitter is asking (finally) is "Will my health, job and salary last long enough to pay the mortgage?" Lots of other people are seeing solid looking homes but cannot say yes to that jobs/health question, and it stops them from becoming GFs ("Greater Fools").

To delude yourself into thinking you are a Donald Trump and "own" three houses on an engineer's income is so 2003. If you are a retiree, maybe you can find happiness in one of those areas. I have 20 years to go before I want to retire but by then I may hate altitude.

Quote:
Originally Posted by thedwightguy View Post
What blows me away looking at housing prices for solid looking homes in Reno, Flagstaff, Utah, and a few areas with minimal problems is that it costs 250,000 to build a home on the level of these just in materials, and they're on the market for less than an apartment rental! (i.e. payments of 300 or 600 a month) Ouch!
i.e. the price of fittings, copper, plastic pipe, good thermal windows and pre-hung doors and lumber/plywood have NOT come down. And let's not talk about permits, inspections, and engineering and design fees.
 
Old 09-25-2010, 09:39 PM
 
10,494 posts, read 27,315,712 times
Reputation: 6718
Quote:
Originally Posted by Ponderosa View Post
Many good economic numbers are coming in. Looks like everything is pointing up again. It won't be long before housing prices firm and begin to rise.
Sure they are. When are people going to understand that it is NEVER going to get better. Housing prices are going to continue in free fall. The USA is going to completely collapse and become a third world country. Here is the real truth below backed up by links. I remember not to long ago there was some guy (can't remember his name) saying the USA can prosper as a service economy. It can't, and that is why we are going down.

http://theeconomiccollapseblog.com/a...blow-your-mind
 
Old 09-26-2010, 04:26 AM
 
9,868 posts, read 11,263,473 times
Reputation: 8533
All Historical Data for Phoenix

Historical home asking price and inventory data are monthly averages calculated from the weekly snapshots. Averaging the weekly data smooths the trend and helps keep M/M and Y/Y calculations well behaved.

Phoenix 25th Percentile (BLUE), Median (GREEN) and 75th Percentile Home Price (ORANGE). Note: These are ("ASKING PRICES")


See HousingTracker.net | Median Home Asking Price & Inventory Data for Phoenix, Arizona

 
Old 09-26-2010, 04:45 AM
 
9,868 posts, read 11,263,473 times
Reputation: 8533
http://www.phoenixmarkettrends.com/public/blog/docs/short%20sales%20in%20phoenix.jpg (broken link)

September 2010 SHORT SALES. Snapshot (as of Sept. 23rd) for the Phoenix area. The sales price per square foot went down $1.50. But the median price went UP $4900.

Source: Cromford Report taken from http://www.phoenixmarkettrends.com/public/blog/164804 (broken link) .

"The increase in Phoenix lender owned homes may put a bit of pressure on short sale. Sure people are more accepting of them then last year, but the uncertainty remains and when a competing property shows up on the market that's either a normal sale or REO and priced accordingly, it's pretty obvious what the choice for the buyer will be. So such a precarious situation will precipitate the pressures on price."

Last edited by MN-Born-n-Raised; 09-26-2010 at 04:56 AM..
 
Old 09-26-2010, 05:16 AM
 
9,868 posts, read 11,263,473 times
Reputation: 8533
See The Cromford Report - Rankings


(I tried pasting it but I didn't have any luck). It chart gives the cost per square foot price changes as of Sept. 16th (by city).
 
Old 09-26-2010, 08:45 AM
 
Location: LEAVING CD
22,974 posts, read 27,098,533 times
Reputation: 15645
Quote:
Originally Posted by sh9730 View Post
Ok - got sucked back in! Mainly to confirm something - as for the assumable FHA rates ( I have FHA loan), that assumability is ONLY for the balance left on the existing loan, correct? So if we all do get someday lucky enough to have rising home values, the new buyer (in order to purchase the house from us using the existing loan) would have to have enough cash to cover the difference, or get a second loan, correct?

I.E., my loan was originally 145K, now bout 140K, IF for some reason I could sell my house for 200K today (just talkin!) the new buyer would have to come up with 60K right? They couldnt get a new loan for 200K at my rate...?

If Im thinking this is right, the assumability isnt all that great a thing....
While this may be true it's still a good hook to get someone to look at your house. Think about it this way, the majority of the loan is at todays rate and if the second loan route is chosen while it would be at a higher rate it would be a smaller loan and averaged down for the total cost. Depending on the rates at the time of sale it could be significant. Example: Primary loan $140k @ 5% and secondary $30k at 8%.
 
Old 09-26-2010, 09:29 AM
 
Location: Rural Michigan
6,341 posts, read 14,744,106 times
Reputation: 10551
Quote:
Originally Posted by sh9730 View Post
Ok - got sucked back in! Mainly to confirm something - as for the assumable FHA rates ( I have FHA loan), that assumability is ONLY for the balance left on the existing loan, correct? So if we all do get someday lucky enough to have rising home values, the new buyer (in order to purchase the house from us using the existing loan) would have to have enough cash to cover the difference, or get a second loan, correct?

I.E., my loan was originally 145K, now bout 140K, IF for some reason I could sell my house for 200K today (just talkin!) the new buyer would have to come up with 60K right? They couldnt get a new loan for 200K at my rate...?

If Im thinking this is right, the assumability isnt all that great a thing....
One more thing - the closing costs are lower on an assumption. The seller has already paid the upfront mortgage insurance fee, and an appraisal isn't needed. The buyer just needs to qualify - not the house.
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