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.
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.
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.
access allowing people reasonably
Lenders are allowing people reasonably unfettered access to their equity.
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.