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 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.
cash draw equity home improve lets money popular resist temptation
This is very popular right now because it lets you draw some money out of your home and improve cash flow. If you do this, resist the temptation to draw too much equity out of your home.
aware five higher home interest likely money rates reality road save seven somewhat three within
Someone who will be out of their home within five years to seven years can save some money with an ARM. But you have to be aware of the reality that interest rates are likely to be somewhat to significantly higher in three years, five years, 10 years down the road from today.
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.
break cost eventually money mortgage supposed virtually
All mortgage money may eventually cost virtually the same. You're supposed to get a break (with ARMs). Where's the break?
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.
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.
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.
certainly difficult high prices time
Leveraging yourself out at a time when (home) prices are very high certainly could set you up for difficult times.