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.






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Lenders will have LOTS of cash to lend

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