Lenders will have LOTS of cash to lend

TEA_BAGGIN_IDIOT | Feb 27, 2013 08:10 AM ET no....I look forward to the collapse of this country......at that time the revolution will begin

NewDay12 | Feb 27, 2013 10:01 AM ET No one needs a $750K home unless you are just trying to impress your friends....aka the jones`s......

Beringer | Feb 27, 2013 12:57 PM ET NewDay12 - Depends on where you live. The median price in the Silicon Valley area is about $600k, and this includes the surrounding areas - meaning your commute sucks. If you live closer to the heart of the Valley, the median price in your town can be well over a million bucks. Los Altos, Palo Alto, Menlo Park, Cupertino, Saratoga, Los Gatos, Atherton, etc - all have median prices over $1.2M, with a couple of those towns over $1.5M.... and again - this is the MEDIAN price, not the top of the market.

Earth_Scientist | Feb 27, 2013 01:22 PM ET Osama Bin Bernanke is at it again: bubble, bubble. I could see requiring 30% down on a $1 million jumbo loan. These are the loans that rapidly defaulted 2007-2009, in speculative markets, and very dangerous. I can also see requiring 3% down on a $100k conforming loan. The default rate on small loans is very low. The default rate on VA loans is almost zero. These are very safe loans. Be on the lookout for appraiser capture, again: realtors and lenders threatening appraisers to `hit the numbers, or else`, like in 2007. Appraisers need to keep a lid on prices; they are paid flat fees. The rest of the crooks are all paid in fees that escalate with prices, so they try to bubble up prices much faster than incomes, inevitably leading to lots of defaults every 5 years or so.

Earth_Scientist | Feb 27, 2013 01:25 PM ET "Lenders will run out of cash to lend to jumbo borrowers. If rates rise, they will have other places to find yield. When you`re sitting on $100 million in mortgages yielding 4 percent and you can use that capital to earn 6 or 7 or 8 percent? You`re going to have to liquefy them somehow." --- CD rates back to normal levels of 5% will get the job done. Lenders will have LOTS of cash to lend at 6, 7, or 8%. The sooner this normalization takes place, the better. We need to get back to traditional 5% risk-free rate-of-return.






Start a Conversation - Add Comments

Your Comment: ( Please enter all fields and security code. )

Name:
Email:
Website:
Topic:
Comments:
 
Word Verification:
 

Latest Comments

Jumbo Mortgages Are Back, but at Far From 2007 Levels - MandyBrazil | Feb 27, 2013 03:58 AM ET if the bank is demanding 30% down and 760 score plus verification of income plus one year payments in bank, how can it be a risk? this is great news
BBB7525

Existing Home Sales Unexpectedly Fall 1 Percent - thereugoagain | Jan 22, 2013 10:12 AM ET Unexpectedly .....is a relative term ....if an idiot looks at the unemployment figures and chooses to believe the government bs that was shoveled out during a... - by UCC4112

Toll Brothers Misses Estimates; Plans to Enter Rental Market - TheRealist82 | Feb 20, 2013 07:27 AM ET Yes, Leopold, and now that we`re up 50%, this obviously justifies a P/E ratio of 300... Makes sense... lol.

Mr.Clumpus | Feb 20, 2013 09:06 AM E... - by Mick577

Home sales inch up in January as inventory shrinks - Phil Bertoli
February 21, 201 These are the people who, to a major extent, gave us the 2007 R/E crash. If you believe their propaganda, I have a bridge in NYC I can sell you at a great price... - by GG4866

FHA loans that essentially let a home buyer purchase a house - FACTcheck | Feb 26, 2013 10:07 AM ET The government needs to kick the leg out of this artificially high market. There is artificial demand available with FHA loans that essentially let a home buyer p... - by Jett134



Lenders will have LOTS of cash to lend

Real Estate Agent Directory

Are you looking for a real estate agent in your area? At housing news blog, you can search for your local realtor and real estate service by using our agent search features.

Real Estate Agent Directory

Get listed!

Are you a real estate agent? Get listed for free with us! Complete a real estate agent profile form and get listed in a few days. Click on the link below to get started!

Free agent profile!