real estate lending environment

Jay070 | Feb 21, 2013 01:07 PM ET Practically the only people who are debt-free are the banking class and those that play ball with them - including the writers for articles posted on CNBC. CNBC`s staff will never have the courage and honesty to tell the ugly truth about money. They would then lose their jobs and be forced to compete in the rat race created by their masters. And who would want to do that?

Harryjh | Feb 21, 2013 01:10 PM ET Hi All: Since 1972, I`ve dealt with the bad lender comments. The 1st thing I realized was "He who has the gold, makes the rules!". In all cases (refinace or purchase), most real estate transactions requires financing and a willing lender to extend that financing. In the current real estate lending environment, the GFE and corresponding Worksheet gives the borrower the best look at cost and the ability to cause lender competition for the deal. Nothing is perfect. If you are looking for perfect, you likely will fall short of your goals. Harry Jensen CA DRE Lic.# 00532825 NMLS ID #236752 NMLS Company ID #357085

duck33 | Feb 21, 2013 01:14 PM ET if you pay $500/per month for a year=that`s $6,000 per year wasted I am renting a house on a Island on the inter coastal that is worth in excess of one million dollars for under 2,500 a month on a long term lease. Tax`s and insurance are some 1,200 a month included in rent that means 1,200 of my rent is cover cost other than mortgage. If I had to service the million dollar mortgage and pay insurance and tax`s my payment would be 5,000 a month. I am living at the beach for half what it would cost me if I bought and have none of the headaches i.e. hurricanes , upkeep , insurance and best of all financial terrorist stealing the value. I sleep so much better renting...

duck33 | Feb 21, 2013 01:36 PM ET Now if I take the 2500 plus what I save on maintenance and invest it in ten years time I will have payed myself not the insurance and banking companies. You are always better of paying your self instead of paying a bank compounding interest or for junk insurance that will not pay a claim. To much robbery associated with owning a home....

duck33 | Feb 21, 2013 01:41 PM ET I would say to the youth live below your means and pay cash for every thing and save. If you do not become a victim of the banks you will not become a debt slave. Saving and paying cash in your youth will make you wealthy in latter years Just like the bank compounding interest you will pay 300,000 to the bank for a home you bought for 100,000 if you save and pay cash you avoided paying the banks 200,000 dollars Pay your self not the banker Take a loan on your 401k and you are paying your self not being a victim of the banker in the market.

Harryjh | Feb 21, 2013 01:58 PM ET OK: If you want to take home ownership one step further, then you must realize that in the USA you never own a home. If you dont have a mortgage and own the home free and clear, you still are subject to the real estate tax. If you don`t pay the taxes, then at some point in time the state can sale the home to recover the taxes. The state has a lien against the property. If you want to go one step further, the state`s "Imminent Domain" power makes real estate ownership in peril in any socialist run society. Renting works when property is over valued. If rent is $2500 and is lower than ownership cost of $5000/mo., then renting makes sense. This means there will be an econmoc correction than will make homes more affordable in the future. Harry freeandclear

TheAustrian | Feb 21, 2013 02:23 PM ET Don`t forget, the housing market is on life support! If interest rates were allowed to rise to natural levels, prices would plummet, as would rents. Whether you rent or buy, the Fed is taking money out of your wallet by pushing prices upward. If you buy, you are paying too much, if you rent, your landlord is paying too much, a cost he must pass on to you. Which is better may vary from market to market, but either way, housing costs are taking up a much greater share of you income than it otherwise would.

Harryjh | Feb 21, 2013 02:41 PM ET Right. The media reports stories of improving housing industry employment. The numbers don`t support such claims. As long as the unemployment number is 8% or 14%, the actual number of people getting some sort of government handouts exceeds 70 million. Property values must go lower as foreclosures increase and inflation continues to get out of hand. Interest rates at 20% can be paid by those buying a 1800 sq. ft 3/2/2 home @ $100,000 or less. The american renter or owner will never pay more than 52% of their net income for housing expense. Watch out for a econmic downturn with the real industry leading the way. Harry freeandclear

LoganMohtashami | Feb 21, 2013 02:57 PM ET Look at housing in this way, if we were in a real recovery then you would have seen a bigger pick up from traditional and first time home buyers. However, even with the QE juiced up interest rates it hasn`t correlated to even a big pickup in mortgage purchase application since mid 2010... This is and will always be a high DTI and light liquid asset problem. The after tax/expense incomes of Americans is just too weak to have a mega real estate booming market and one is for sure.. rates are going up in the long term so you will not only need more jobs but better income growth to offset the higher rates.

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