Keith Gumbinger
Keith Gumbinger
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.
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.
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.
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.
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.
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.
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.
business slips stuff whenever
Whenever business slips a little, lenders trot this stuff out.
answer ask bank bankers believe ensure fixed helps loan obvious pitching product question rates rise variable
The question you need to ask yourself is, why would a bank be pitching you this product at this time? The obvious answer is that bankers believe rates will rise in the future. Getting you out of a fixed loan and into a variable one helps ensure profitability on your account.
allowing declining housing interest rate rising risks today together top
What is new today is that lenders are allowing for the layering of risks on top of one another. What we don't know is what if we put all these risks together and put them in a rising interest rate environment, a declining housing market, or a weakening economy.
cut low mortgage people rates
With rates as low as they are people can cut years off the mortgage for the same monthly payment.
credit good homes lend mac percent qualify
Fannie Mae and Freddie Mac will even lend 103 percent of the homes value. You need to have very good credit to qualify for this kind of loan.