Keith Gumbinger
Keith Gumbinger
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.
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.
cash improve likelihood loan might payment reduce term
If you re-extend from 15 years back out to 30 years, that might reduce your monthly payment by 30 percent, ... If there isn't a likelihood that you'll pay off your mortgage, the re-extension of the term of your loan could measurably improve your cash flow.
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.
bridge loans methods variety
There are a variety of methods by which bridge loans are made.
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.
additional continue debts exceed guarantees home levels prices quickly rates remain value
Not only do you not own any of your home, but you may be piling up additional debts that could quickly exceed the value of the home. There are no guarantees that rates will remain at comfortable levels and no guarantee that home prices will continue to go up.
home late night purchases saw
No-money-down home purchases used to be the kind of thing you only saw on late night TV.
interest lock optimal
The optimal thing to do is to lock in your interest rate.
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.
Could there be some 50s? There could be some 50s.
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.
activity catch chance home prices trying
They're trying to make home prices more expensive, so some of this speculative activity will decrease, and incomes will have a chance to catch up.