How the US is Subsidizing High-Risk Home Buyers — at The Cost of Those With Good Credit

#28
#28
McDad said:
I've held a mortgage since 1999. I do not recall ever hearing about that orginal .25% fee. I wonder how long that has been there?
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I recall that last time I refinanced (just before Covid) my mortgage broker talked about a new fee (seemed to be 1%) going into effect - maybe it got delayed due to Covid and this was in the works for some period of time.

I had to edit my post you replied to since I originally thought it was a change to interest rate rather than a fee based on the mortgage amount.
 
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#29
#29
some more detail here

Impact of Changes to LLPA Grids - Experian Insights

and

Some BIG Changes to Mortgage Costs Were Just Announced

this chart shows who gets hit the most (biggest increase).

63c9a2932026a02d6ca2665a.png
 
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#34
#34
utvolpj said:
The expert complains about student loans (ones that are really easy to get) and then states this:


Scan and email some documents is brutal?
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They're so pathetic. IDK if anybody saw the Coinbase commercial that dropped recently, but it's pretty great.

 
#35
#35
volinbham said:
I recall that last time I refinanced (just before Covid) my mortgage broker talked about a new fee (seemed to be 1%) going into effect - maybe it got delayed due to Covid and this was in the works for some period of time.

I had to edit my post you replied to since I originally thought it was a change to interest rate rather than a fee based on the mortgage amount.
Click to expand...

I really wish we could discover under which admin it began.
 
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#37
#37
McDad said:
Of course. Real estate is the world's best hedge against inflation. And borrowed money is at 6.5% interest...as purchasing power decreases, your cost of borrowed money decreases relative to inflation.
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I've got 2 properties rn. The plan is to buy again in that little window when interest rates are artificially low again but before that fact spikes housing prices. That's what I did sort of accidentally when I bought my home and my cabin, LOL.
 
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#38
#38
VolStrom said:
So borrow money to buy real estate is what you think everyone should do? No thanks.
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Any investment (for the most part) that pays for itself is a good investment.

If you bought a home today with a mortgage of 1000 knowing you could rent it for 1500 today, why wouldn’t you? Granted that exact scenario is rare
 
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#39
#39
n_huffhines said:
I've got 2 properties rn. The plan is to buy again in that little window when interest rates are artificially low again but before that fact spikes housing prices. That's what I did sort of accidentally when I bought my home and my cabin, LOL.
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Good plan.

Do you rent or AirBnB your non residential properties?
 
#40
#40
If you accept the notion that inflation will always occur because it’s in the best interest of the government, then I think you have to accept the premise that taking on debt is in your best interest in most scenarios. Because every year the government will discount that debt for you through inflation
 
#41
#41
McDad said:
Good plan.

Do you rent or AirBnB your non residential properties?
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That's just starting up, actually. I partnered with some cousins and we have 30 acres in y'all's part of the country. Right now we got a big cabin, a 1200 sq ft cabin (which is the one I have a loan on), and 5 little A frame cabins and right now we are kicking off the business. We're gonna keep building lodging over time and we're building trails that connect to state trails, and we're building common amenities. Air bnb will be a big part of the business for now, but hopefully we can get to the point where we're mostly booking events, like weddings and yoga retreats and stuff like that.
 
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#42
#42
When I move back to Tennessee in a couple of years, I couldn't care less if the property I will buy will ever appreciate. As a matter of fact, I hope the value drops precipitously every year since I will only be paying taxes on it. Since I will die owning it, it's value is of no consequence to me.
 
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#43
#43
n_huffhines said:
That's just starting up, actually. I partnered with some cousins and we have 30 acres in y'all's part of the country. Right now we got a big cabin, a 1200 sq ft cabin (which is the one I have a loan on), and 5 little A frame cabins and right now we are kicking off the business. We're gonna keep building lodging over time and we're building trails that connect to state trails, and we're building common amenities. Air bnb will be a big part of the business for now, but hopefully we can get to the point where we're mostly booking events, like weddings and yoga retreats and stuff like that.
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That sounds awesome.
If you run low on capital and need an investor, please let me know.
 
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#49
#49
McDad said:
To be fair, this has nothing to do with the factors which lead to the collapse of 08. There were different mechanism then compared to this proposal. It doesn't mean there won't be a housing bubble burst in the future, but the magnitude of the 08 crash was only experienced one other time in American history.

In fact, we are more likely to see continued inflation. And if that is the case, all of us should be buying more real estate and borrowing as much as possible.
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It can be different mechanisms, but the goal is the same - open up home buying opportunities for people who cannot currently qualify.
 
#50
#50
So McDad is a Mack..how appropriate..LOL

Moving Van Driver To Old Man At Country Store Porch:
Hey Mac, which way to Redbud?
Old Man:
How'd you know my name was Mac?
Driver:
Just guessing.
Old Man:
Then guess your way to Redbud.
 
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