tag:blogger.com,1999:blog-278794854156483859.post6394582204861097934..comments2023-10-29T08:16:13.473-06:00Comments on Beyond the Consumer: Will poor folks be shut out of the housing market?Beyond the Consumerhttp://www.blogger.com/profile/16880781143933380601noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-278794854156483859.post-46485683486099190312008-10-23T22:18:00.000-06:002008-10-23T22:18:00.000-06:00I dont think that there is any kind of risk no mat...I dont think that there is any kind of risk no matter what type of loan you are taking out. If you're shopping for a mortgage and ARM rates can be lower in that case a solid fixed never changes. But if you buy a house and only plan to live there 3-5 years, what would be wrong with a 6 year ARM? Fixed rate for 6 years, but your intention is to sell prior to the adjustment. markets are saturated because people borrow the entire value of the home and there is no equity to work with. there are certain <A HREF="http://www.mortgagefit.com" REL="nofollow">type of mortgages</A> out there that make sense for some, and others see them as a bad idea. It is beyond me how people with bad credit or no credit can even borrow money. Owning a home is exciting but it can become a burden if the payment is half the take home pay. I dont think it Would make any difference? If things change and you want to keep the home long term, convert it into a 15 year fixed so you can pay it off.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-278794854156483859.post-8923900427603239422007-07-27T09:18:00.000-06:002007-07-27T09:18:00.000-06:00There is risk no matter what type of loan you take...There is risk no matter what type of loan you take out. You're shopping for a mortgage and ARM rates can be lower but a solid fixed never changes. What I am saying if you buy a house and only plan to live there 3-5 years, what would be wrong with a 7 year ARM? Fixed rate for 7 years, but your intention is to sell prior to the adjustment. Would it make any difference? If things change and you want to keep the home long term, convert it into a 15 year fixed so you can pay it off.<BR/><BR/>By the way, markets are saturated because people borrow the entire value of the home and there is no equity to work with. If you owe more than the house is worth to sell the thing, it becomes difficult to sell. I think foreclosures are high because of these rip-off debt consolidation programs throwing their debt into a HELOC.<BR/><BR/>I think there are certain types of mortgages out there that make sense for some, and others see them as a bad idea. It is beyond me how people with bad credit or no credit can even borrow money. Owning a home is exciting but it can become a burden if the payment is half the take home pay. I wish banks would take more responsibility to stop telling people what they want to hear and give them a scenario of what would happen to them if they got them a loan. It is all about the business and young bankers look at volume of loans they can push through as personal success. Half those loans could be foreclosed on because the people can't really afford them. Integrity has been thrown out the window.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-278794854156483859.post-7818889089008749632007-07-26T15:41:00.000-06:002007-07-26T15:41:00.000-06:00Possibly, but that's too much risk, IMO. What if y...Possibly, but that's too much risk, IMO. What if you plan on living there for 2 years and then move? I guess a 2/28 ARM makes sense. But...what if the end of year 2 rolls around and for some reason you can't move, or can't refinance, or the market is saturated with inventory (like now) and it takes forever to sell and you can't afford the huge new payment?Beyond the Consumerhttps://www.blogger.com/profile/16880781143933380601noreply@blogger.comtag:blogger.com,1999:blog-278794854156483859.post-51476251227999710852007-07-26T15:20:00.000-06:002007-07-26T15:20:00.000-06:00I know there are people who think 30 or 15 year fi...I know there are people who think 30 or 15 year fixed rate loans are the best in every case. They are consistent in that your rate will not change unless you refinance. What if you don't plan to live in the property that long? Would it be worth getting a, *gasp*, ARM?<BR/><BR/>Getting an ARM that would change rates every year or two would probably take an arm and leg when that happens. I use a HELOC to split things 80/20 in order to avoid PMI. It is stupid to use one to take a vacation or feel like you paid off credit cards with it. <BR/><BR/>My credit is fine and I could borrow much more than I need to, but why would I want to do that? Also some of us also have 1099 in addition to W2. There is a difference between being poor and broke. Poor people have given up and have absolutely nothing. People who are broke and buy a house they can't afford will end up being poor without a house. Broke people always know when they'll be broke too. So if they know they'll be broke on Saturday, they party it up on Friday!Anonymousnoreply@blogger.com