Keith Gumbinger
Keith Gumbinger
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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.
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It certainly could cause a change to the marketplace, ... But you're trying to talk about whether the 14th card might fall when first one hasn't fallen yet.
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In many markets, it's possible to borrow at prime or even a quarter to a half a percentage point below prime.
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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.
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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.
interest lock optimal
The optimal thing to do is to lock in your interest rate.
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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.
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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.
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There's no way for consumers to borrow more cheaply. But that might change if the Fed raises rates a couple more times.
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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.
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A quarter point here, a quarter point there, and soon you start to feel the pain of significantly increased monthly payments,
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.