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

It is harder to lose it to foreclosure - Auto 101 Doug March 20, 2013 IF you pay off your house, it is harder to lose it to foreclosure. A 15-year mortgage is better than a 30-40 year one. Did you know they are making 50-year mort... - by jimtini

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

The economy is booming... - sidfeinberg | Feb 5, 2013 03:27 PM ET swfljim | Feb 5, 2013 02:53 PM ET Speaking as a Realtor in Southwest Florida (Bonita Springs-Naples area), prices here were up 17% on average last year and the a... - by Lisa721

Combined with Fannie Mae and Freddie Mac - Archy1 | Dec 26, 2012 02:27 PM ET Comments such as: shut down Fannis and Freddie, Obama as a Free Ride, free money forever, I want my free house. All show one thing. Many have been fooled by the ba... - by jon3345

Where homebuyers love mirrored closets, Roman tubs - michelle1
March 28, 2013
− Your map pin pointing Phoenix, AZ is in New Mexico.....good job. 34 Reply

dack maddy michelle1
March 28, 201... - by Homeshow



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!