OT - Anyone realtors or mortgage lenders on the board?
- Thread starter bomber89
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That is why you negotiate for cars via email…much easier.
While I suspect most people back in the day hated dicking around with car salesman, I enjoyed it. I hate the kind of pricing now where the price is the price. Because the dealership is going to make a profit. If the price is the price, the profit is spread evenly over all buyers. In the old days if you were willing to do the dance and be firm and patient, you could buy a car not a lot over invoice because the sales manager just got through screwing somebody else for an extra $2K. Back then you kept going back and forth with the salesman to the sales manager, until the sales manager got pissed and dealt with you directly. Then it got deep, I'd tell him I was terminally ill and I needed this car cheap because I had medical bills. He would turn red and call me a liar. That kind of thing. But it usually paid off.
$2000 isn't nothing but it's better than living in a bad neighborhood.
To everyone out there, never buy a home without living in a place at least a year as a renter. You need to learn the area and photos or videos won't suffice.
I am a little late with this info. I am wondering if your realtor had the Sellers permission to do a video chat with you while walking around inside the home. It would not effect the Buyer but a realtor taking additional pictures or videos of the interior of a house without the Sellers permission could find themselves in trouble. I've got to admit I was guilty of taking interior pictures and videos until I heard our state realtors association lawyer detail the liability that could incur in doing so. Bottom line go see any property before buying.
I’m moving to Lincoln, and I just bought a house on 25th and Potter, hadn’t been to that part of town, is it a nice neighborhood? Is 7.99% a good interest rate on a 30 year morgage?
GO BIG RED
GO BIG RED
Losing the earnest money could be a state by state deal. A lot of different laws out there believe me. I have owned homes in 6 states in my life and none seem the same.
I am not surprised by the price increases in cities, bigger towns and resort areas but I am surprised how much homes in small towns in Nebraska have increased in price. Still cheaper than the places I've already mentioned, but much higher than they were 3-5 years ago.
Check out the forecasted interest rates over the next few years. The housing market is hot right now because buyers are desperate to get in before mortgage rates rise to levels not seen in decades. Housing prices will inevitably drop as mortgages become more unaffordable. Would I buy right now? No. I'd wait and hunker down.
Something I'd also keep an eye on in Adjustable Rate Mortgages which always appear when housing prices rise along with interest rates. Lenders are always willing to do anything to get the loan through, but those teaser rates will lead to foreclosures. Do not get one. Bad, bad, idea. Better to buy down the rate even if it costs a lot upfront.
Biden's America...all because people were offended by tweets..
longforecast.com
Something I'd also keep an eye on in Adjustable Rate Mortgages which always appear when housing prices rise along with interest rates. Lenders are always willing to do anything to get the loan through, but those teaser rates will lead to foreclosures. Do not get one. Bad, bad, idea. Better to buy down the rate even if it costs a lot upfront.
Biden's America...all because people were offended by tweets..
MORTGAGE RATES PREDICTIONS 2024, 2025, 2026, 2027 AND 2028
Mortgage rate predictions for this month, 2024, 2025, 2026, 2027 and 2028: 30-year mortgage rate predictions and 15-year mortgage rate predictions. The current mortgage rates. Long-term mortgage interest rates forecast. Mortgage rates trend.
longforecast.com
"As a rule, a condition in mortgage agreements is that you have to pay part of the cost yourself - the so-called down payment. For example, you have to pay 30 percent of the cost of the apartment from your funds, and 70 percent is given to you by the bank on credit. It is the advice my broker gave me from Mortgage Broker Cheltenham.
Estimate your income and your future expenses.
If your loan payments are more than ½ of your annual income, there is a risk of being unable to pay the loan.
Take your time, be picky, compare offers from different banks, and study the contract terms carefully. Make sure each clause is clear to you."
Estimate your income and your future expenses.
If your loan payments are more than ½ of your annual income, there is a risk of being unable to pay the loan.
Take your time, be picky, compare offers from different banks, and study the contract terms carefully. Make sure each clause is clear to you."
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Whenever I went to meeting where our state realtor association‘s attorneys spoke they always preached to tell clients only 100% facts. They wanted us to provide the client with where they could get the information and let them get it for themselves.
I get that since it’s a lot subjective. This realtor apparently didn’t do that either. Provide resources for crime stats and things like that. Comparable sale prices, etc.
Is that how high rates have gone up? I locked in at 3 percent last Dec.
Well back in April that interest rate was high as hell…you either have bad credit or got a horrible deal. 8% interest rate right now is only a little bit high. I also refinanced at 3% over a year ago.
These numbers, if they are legit accurate forecasts, mean housing is going to take a big haircut down the road.Check out the forecasted interest rates over the next few years. The housing market is hot right now because buyers are desperate to get in before mortgage rates rise to levels not seen in decades. Housing prices will inevitably drop as mortgages become more unaffordable. Would I buy right now? No. I'd wait and hunker down.
Something I'd also keep an eye on in Adjustable Rate Mortgages which always appear when housing prices rise along with interest rates. Lenders are always willing to do anything to get the loan through, but those teaser rates will lead to foreclosures. Do not get one. Bad, bad, idea. Better to buy down the rate even if it costs a lot upfront.
Biden's America...all because people were offended by tweets..
MORTGAGE RATES PREDICTIONS 2024, 2025, 2026, 2027 AND 2028
Mortgage rate predictions for this month, 2024, 2025, 2026, 2027 and 2028: 30-year mortgage rate predictions and 15-year mortgage rate predictions. The current mortgage rates. Long-term mortgage interest rates forecast. Mortgage rates trend.
7% rates aren't that bad historically, but then we get into the 10% and later the 12% range, that actually would have the net effect of cutting prices by 55%, if interest rates go to 12% in comparison to calculating them at 4%.
The interest component makes a big difference at those higher rates. All those people who rushed in to buy a home in the last 2-3 years will be upside down.
People like my wife and I, who HAD to buy a home and did back in Jan, did a 30 at 3.625 and with today's rates, and all other numbers being equal, our house payment would be approx. $700.00 more, which means we would not be in this home. So even if prices fall on homes (and they won't crater), the higher rates will not only offset any savings on people's monthly budget, but their monthly payment will also be higher if they waited. Sellers are the one's who will take the hit since they will be the ones who have to list at a lower price. My point is, people who bought homes in the last year or two, did the right thing by not waiting. Sometimes you are a prisoner of the times and you have to live somewhere, so if you have to have a home now, it is what it is, and you can't worry about things that are out of your control.
So true...
I did a refi and got in at 2.25%, which is almost free money...I would hate to be looking right now and even selling right now seems like a mess compared to just a few month ago.
I think the right house at the right price still goes pretty fast, but things have definitely changed. When we bought 8 months ago we were not even married yet, didn't even have the plans set, etc, etc, but I told my then fiancé "If we don't buy right now while there's some snow on the ground in January, and with where this market is headed in the short term, we're going to regret it"...luckily she listened and came around and we bought our dream home (the very first home we looked at no less), and we made 2 addl house payments on top of the one we just bought for several months because we each had our own place at that time, but it was still 1000% worth it. Now we sit out back around the fire with a glass of wine and talk about how glad we are that we did it. We will be here until one of us dies and we wouldn't change a thing.
Dude, I was mad because it was 2.0 maybe even 1.75...but by the time I got around to it was 2.25.
I’ve always agreed with this but with the caveat that the federal government lately has been full of fun little Christmas presents. The latest being the student loan forgiveness bs which will add a good chunk of buying power to a lot of folks at one time. Plenty of those folks will use that to buy houses, especially with the “get in while you can” psychology the recent situation has put on them.
In the short term, that is going to send prices higher. They probably will have to jack interest rates to those levels or higher to combat it and I agree, eventually prices should come in at least a little bit. I still maintain the caveat of - What will the feds come up with next to send us into hyperinflation? They can keep this going for awhile.
If the interest rates go up to 12% as that site predicts, home values should drop by around 55%.. If those things happen, you can be sure that the banks who hold those notes, will no longer feel comfortable with that level of debt collateralization.
They will call those loans to be payable immediately or the home will be forfeited to the bank to honor the loan. And this would start happening long before prices fell by that much. As soon as a homes value approaches loan value, banks are going to start implementing that clause in the mortgage agreement.
See last time the real estate market tanked, the fed bailed out the banks. Then we had all the new dod frank rules put in place after 2008. Next time, the fed will not bail out the banks, and in fact the banks are going to have the ability to seize not only the assets, but also the funds held in the bank.
By these new laws, when you deposit money into a bank now, it is no longer your money. You are an unsecured creditor of the bank and the bank is the legal owner of those funds.
Anyway, it's possible that the government would issue some sort of free gift to the people if everyones house started going under water, but it is more likely that the government would seek to nationalize that portion of the housing market, and maybe that is their plan.
No more mortgage, but no more home ownership either.
We are in a long term macro deflationary environment due to the population issue across the globe. It is precisely because of this, that we have gotten away with printing so much money for so long.
I certainly don't hope to see people's home values fall, and I assume the fed would pivot and start printing money before we saw interest rates at that level, but a lot of the analysis I'm hearing on equities and other asset prices, is that the highs reached last November won't be seen again for 10-15 years.
Definitely sounds like a few different ways to implement a great reset where we own nothing. Interesting stuff. Definitely going to look into these new rules some more.
every state is different in regard to the recourses available to them.. most are sold to Fanny & Freddie anyway, but if you have a 400k mortgage and that is secured by a home now worth only 250k, something has to give, and it sure isn't going to be the federal govt in my opinion.
Black Rock/Black Stone standing by with 50 Billion to buy up distressed property at dimes on the dollar.
It's about time all those 2008 distressed loans defaulted to be unleashed. Those were never collateralized, they were bundled in mortgage backed securities.
In the G7 meeting held in June or July states: The G7 nations have agreed to bail-ins if a bank fails. If a bank fails, the depositor's money is used to buy bank shares which then "re-capitalize" the banks. It wipes out the obligations to depositors and gives them shares in the bank in exchange. However, what usually happens before banks go insolvent, the share price declines toward zero; as do their bonds. So, the amount of recapitalization required by the banks would be determined by some agency and that is what the depositors would have to ante up. At that point, the bank share prices are at or near zero so, the number of bank shares handed out to depositors would reach infinity. In other words, the bank deposits are used to buy bank shares that are next to worthless. Do you still want a Great Reset?
Nikki, I won't dispute your 55% figure since I felt 30-40% was my initial assessment. At any rate, I agree with virtually all you posted above. I'm fortunate in that it makes little difference to me, I don't plan on selling during my lifetime and I can't take the money with me anyhow.
Those of us who have a paid off home are very fortunate and I've told my adult kids to keep their paid off homes unless and until this tidal wave of defaults/foreclosures/repossessions time frame ends.
The ultimate plan is to make this a nation of renters. Even those in trailer houses are getting creamed by the new corporate mobile home lot owners. They have those people over a barrel. If a mobile home lot is, say $ 500.00 a month, and the lot rent is raised to $ 750.00 (as is being done) it really forces the mobile home owner to just eat the increase because the cost of moving a mobile home is in the thousands.
I'll try to find the article I read @ 7-10 days ago.
Seems there are about 3-4 corporate owners and their business models all look the same. When they are dealing with a lot of elderly, fixed income or mainly lower income people, how can they be any different that a slum lord that keeps jacking up the rent to those least able to pay?
I know there are 3.8 Million homes due to foreclose and eviction at the end of September. I'll try to find that source again as I just read that in the last 2 days or so. (Until I confirm, could be EITHER 3.8 Million homes OR 3.8 Million people).
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You don’t know what you’re talking about here…unless you’ve been in lending for 35 years. Demand Features don’t vary by State and you don’t have Demand Features on Residential Mortgages except in the instance of Consumer Fraud. Back in the day you could have a Balloon feature that could be problematic but true Demand features….no. Non existent.
look for a depreciation of security clause.
also see # 7 here
10 Important Clauses in a Home Loan Agreement Everyone Must Know - TATA Capital Blog
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If you don't have the extra security, you can be considered in default of the terms, and that is how the property is seized.
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What I did to come up with that figure was to take a $400k loan 20% down, at 4% was roughly a $1500 payment, and then worked backwards, reducing the value of the home until arriving at a similar payment, but at a 12% interest rate. That resulted in a home loan starting figure of 180k, and the difference between the two was how I got 55%
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