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.
bridge loans methods variety
There are a variety of methods by which bridge loans are made.
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.
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.
people realistic time
People are a little more realistic about their time frame, especially young folks,
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.
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.
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.
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.
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.
interest lock optimal
The optimal thing to do is to lock in your interest rate.