Keith Gumbinger
Keith Gumbinger
borrowers budget buy encouraged invest loans money paid people product save stretch value
These loans can be of value for people who want to save or invest the money they would have paid in principal, ... Unfortunately, the way the product has been pitched, borrowers have been encouraged to stretch their budget to buy more house.
borrow change consumers couple fed might raises rates
There's no way for consumers to borrow more cheaply. But that might change if the Fed raises rates a couple more times.
borrowers budgetary cushion extra financial impact manageable safe spending themselves year
Most borrowers have some financial cushion so the impact won't be immediate; spending an extra $380 is manageable at first. But it's safe to say there are some who will find themselves in budgetary difficulties a year or two down the road.
borrow buyers cash flush home layer markets minimum money mortgage pay possible risk top value
Mortgage markets have been so flush with cash that home buyers are able to layer one risk on top of the other. It's possible to borrow more than the value of the home, put in no money of your own and pay a minimum monthly payment.
borrowing costs influence mean stop
Does that mean (consumers will) stop borrowing because it costs them another $5 a month? Probably not. It may influence decisions. I don't think it halts decisions.
borrowers choices expanding include loan means menu niche opportunity
Expanding your menu (as a lender) to include as many loan choices means you get a better opportunity to scour borrowers out of niche markets.
borrower challenge credit good seem
If you're a good credit borrower you can challenge fees if they seem excessive.
borrowers harder low money pay points rates trim
If you pay points up front, it's harder to get your money back. When rates are high, borrowers have to pay points to trim rates any way they can, but with rates so low there is really no need to pay those points.
below borrow half percentage point possible prime quarter
In many markets, it's possible to borrow at prime or even a quarter to a half a percentage point below prime.
Could there be some 50s? There could be some 50s.
credit higher interest knock percentage points primary score
Listing the person with the higher credit score as the primary borrower, ... may knock as much as two percentage points off the interest rate.
either good sound
It doesn't sound like either of them got a particularly good deal.
builder buyers definitely expect house pay seller
I would definitely expect more of it. Buyers may not pay for it. The seller or builder may pay for it to get a house sold.
cuts economy fed investors mortgage rates
Mortgage rates come down when fixed-income investors think the economy is slowing, not because the Fed cuts rates.