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No, I am FAR from jealous of ANYONE! I'd actually could say it is the other way around as I've not been hit by any kind of slump in business or real estate or any other kind of financial hit. Well, other than the stock market going up and down but that money is put there for the LONG HAUL as even w/ the downs that come along we are still ahead from when we first started. I'm not a day trader.
No, it was not any kind of "desperate attempt" to "bring buyers back to the market". I'm not looking to sell ANY property be it our primary residence, lake house, vacation condo or our commercial properties. They ALL have done fairly well and we could sell any one of them for a nice tidy profit . IF we WANTED to but at this time I don't care to sell anything. Now if someone comes knocking on the door w/ an offer I can't refuse then I'll pack up as quick as I can Also not a "bitter stuck homeowner" that is "stuck with depreciating illiquid asset and not mobile". Only owned our current primary residence since 02 and put down a hefty down payment and have seen our property RISE in value at a nice steady pace. Not that we plan on selling or moving for awhile at all to make money off of it. And don't worry bout me as we have PLENTY of liquid assets to get ahold of but we also plan for emergencies and make sure all t's are crossed and i's dotted.
All this was JUST to let those that ARE looking to buy but waiting for whatever reason that IF they have ANY kind of glitch on their credit or they prefer to do their own taxes and insurance that they should get out there and take advantage of the situation NOW and not wait till things get worse when it comes to getting a mortgage. Sorry but financing for 15, 20 or 30 years a years worth of homeowners insurance is NOT a wise financial move.
Congratulations on you and your family's financial success!
So, I'm not a bitter renter and you're not a stuck homeowner. It's good that we understand each other
Of course, your situation is definitely not the norm, and all signs point to continued weakness in the market on a national scale, including "paradise" areas such as SLC, Raleigh, and even Dallas. Since y'all have been doing great with your finances, I'm sure you'll all adapt to imminent falling prices well. After all, you don't have to sell...the problem is that I don't have that luxury of staying put.
All this was JUST to let those that ARE looking to buy but waiting for whatever reason that IF they have ANY kind of glitch on their credit or they prefer to do their own taxes and insurance that they should get out there and take advantage of the situation NOW and not wait till things get worse when it comes to getting a mortgage. Sorry but financing for 15, 20 or 30 years a years worth of homeowners insurance is NOT a wise financial move.
Escrowing is not being required as long as you have 20% or more down/equity.
Just because someone escrows does not mean that one year's worth has to be financed for the life of the loan. It can be paid out of pocket on a refi. and on a purchase it is never financed.
Escrowing is not being required as long as you have 20% or more down/equity.
Just because someone escrows does not mean that one year's worth has to be financed for the life of the loan. It can be paid out of pocket on a refi. and on a purchase it is never financed.
Right NOW an escrow account is not required but it will be for MOST loans starting June 1st.
I'm referring to the first years homeowners insurance. The LENDER adds in the cost of the first year premium to the amount of the loan even though YOU may be writting a check and paying for it IF you have that option - some mortgage companies won't take it. Most people don't realize THEY CAN write a check for it and get it off the loan amount. Therefore they ARE financing for the life of the loan that first years premium. And why in the world would one want to refi IF they are getting a good deal NOW on interest rates. If one locked in back in March for less than 5% why would they refi if rates are higher?
What is your background? You say you don't work in real estate but you seem to know alot about it.
Its great that you have a credit card at 9% lifetime rate but it doesn't matter if your rate is 25% if you pay your balances every month like I do and get 2% cash back. I think my rate is like 10-11% depending on Prime but I don't really care as I have never paid them any interest.
I recommend waiting for those on the fence who can afford to stay put. The credit market has already gotten tight and will only get tighter for those with marginal credit.
For people with good credit though or those that can pay cash I would only buy if you find that dreamhouse you plan on staying in for a decade or more. For investors, the deals are only going to get better as the number of short-sales and foreclosures increase.
When do you see prices bottoming out in Dallas? Nationally?
I do see prices dropping in Dallas in the next 12-24 months, but only a little.
BTW, of all of those on here that are saying "don't buy now", do YOU OWN or RENT? Just curious.
I'm an owner, just like you. I'm also in a strong local market, just like you. My logic tells me that a shrinking buyer pool will bring about better deals in the future than I can find right now, so I'll hold tight. FWIW, I'm looking at the market from an investment standpoint right now and not for another primary residence.
I've followed a lot of your posts, and you always seem to be level-headed and easy going. But for some reason in this thread, you keep throwing your finances around like others should be jealous. I'm thrilled that you're doing well in life, I really am. But sometimes discretion is the better part of valor.
When do you see prices bottoming out in Dallas? Nationally?
I do see prices dropping in Dallas in the next 12-24 months, but only a little.
I'm not so sure that I see the Dallas market dropping at all (perhaps pockets, but not the area as a whole). The area has a growing population and strong employment, so I would not be surprised to see Dallas continue to grow.
I consider myself financially responsible. And yet I prefer having the escrow. The interest earned from this small amount of money wouldn't offset the cost of having to deal with paying it every month on my own. For some if their taxes are very very high I could see wanting to manage it on your own.
As for the folks who choose not to escrow and also choose to not put money back every month to cover taxes....(shakes head)....I guess they think money is going to fall out of the sky when it comes time to pay taxes and insurance.
I HAVE! And for the UMTEENTH time real estate IS LOCAL!!!!! The advice given on this forum by some that give a blanket statement that all real estate markets are nose diving and to go in and lowball offer is NOT realistic. The Dallas market is NOT the only market that is not being hit hard. I AM NOT trying to sell my house or any other property and I have property that is NOT in the Dallas area and it is also doing just fine and has not taken a hit in value.
I guess it is okay on here to talk all gloom and doom just because SOME areas are getting hit hard but not okay to talk positive about markets that ARE NOT suffering in a bubble.
I would have to agree with you here. I'm in a market that has done well and will likely continue. We never had huge spikes when the market was going crazy, and we're not taking a bath now that the worm has turned. I live in one of the (perhaps still the) fastest growing counties in Missouri. Our cost of living is quite low, and people are coming to this area at a steady pace.
I also think your points could be made without excessive use of the caps lock key. It is quite apparent that this thread strikes a chord with you, and I'm enjoying the discussion, but capitalizing every fourth word is a bit much.
Right NOW an escrow account is not required but it will be for MOST loans starting June 1st.
I'm referring to the first years homeowners insurance. The LENDER adds in the cost of the first year premium to the amount of the loan even though YOU may be writting a check and paying for it IF you have that option - some mortgage companies won't take it. Most people don't realize THEY CAN write a check for it and get it off the loan amount. Therefore they ARE financing for the life of the loan that first years premium. And why in the world would one want to refi IF they are getting a good deal NOW on interest rates. If one locked in back in March for less than 5% why would they refi if rates are higher?
Escrowing is not going to be required come June 1st. Maybe at your bank or something, but not across the industry. I have not seen anything from any lender that indicates this change.
The lender never adds the 1st year's worth of homeowner's insurance to the loan on a purchase.
On a refi. whatever needs to be held back in escrow (depends on where you are in your policy period and what has been paid) can be added to the loan amount along with the closing costs, but the borrower always has the option of paying some or all costs out of pocket.
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. IF we WANTED to but at this time I don't care to sell anything. Now if someone comes knocking on the door w/ an offer I can't refuse then I'll pack up as quick as I can 
momof2dfw
