I'd say RG's advice about having enough money down to buy a home is looking pretty sage right now.
I'd say RG's advice about having enough money down to buy a home is looking pretty sage right now.
Tyrone,
Why do you always refer to yourself in the third person? You sound like a sports star talking about himself.
Originally Posted by oregonpackfan
Tyrone,
Why do you always refer to yourself in the third person? You sound like a sports star talking about himself.
That's his shtick.
Scott,Tyrone,
Why do you always refer to yourself in the third person? You sound like a sports star talking about himself.
That's his shtick.
I must ask you to stop appropriating my culture.
Rosy? Geez, and i worked hard not to appear to be a doom and gloom asshole.You ain't seen nothing yet. It will be at least another year of this.
I live in sub prime nirvana...az..and the mortgage brokers..and I mean real brokers..not the guy that switched from selling cars the minute the market got hot..are all telling me that at the minimum a year. Tyrone's brother, who is a very financially viable guy has his bankers saying pretty much the same.
I dont' think many on this board realize how many bad loans are out there. Those no doc loans were given to anybody with ok credit..so every bartender, waiter, person who earned off tips..got a place on. Now, they are screwed because you need to show some sorta earning..and they can't do it. They can't afford the new payments after the arm term ends..nor can they refi as they can't prove earnings.
Every week there are more commercials for REDC and buying properties at auction. Ty's crackhead friend went to buy a property that the bank had bought after foreclosure (poor bastard had left 100k in equity in the place)...house at one time valued at 650...bank offered it at 395...property sold at 375.
And, let's not forget the other countries like India, Australia, UK that are also going thru their own sub prime problems.
Just saw this and agree completely. I also have a good friend in the sub prime business, and those boys know the score. His outlook isn't quite as rosy as you friends.
Talking with those guys makes me wonder why I got in my line of business. The (relatively) easy money is in finance - despite all the current contrary evidence.
I'm with your buddies...I think we are really going to suffer for quite a while.
Ty's brother has two million dollar properties in N.Scottsdale that he can't sell..or rather he could sell, but he would be financially hurt by doing so.
Ty saw this coming early as Ty had transitioned from being in tech to headhunting. Ty's territory was S.Cali and civil engineers/surveyors. Boom, suddenly firms that were crying for land dev candidates were letting people go. Reminded Ty of the dot com/y2k era.
Business: Agreed. When the market turns again..3 or so years, i may just bail to that. If a bunch of used car salesmen can make 300k why not Ty?
Smart move. Same one i made.I am really glad I backed out of buying my first home in 2005 for $200,000. That same home now is worth $180,000 and I would have used an ARM loan to get it. I'm still renting a house, waiting for the right time to buy one with a 30 year fixed.I agree Ty.
On average, I would expect home prices to tumble at least another 5-10% before the housing market truly corrects itself. The supply of available homes is only going to continue to grow...and the credit crunch means there are fewer and fewer people buying.
And that is at the heart of the matter. There were people in houses who couldn't afford them to begin with. There were valid reasons that prior to 5 years ago you couldn't get a no money down home. This had to end badly.
Sometimes having that sound Wisco background...30 year fixed, etc. stops us from making a ton of money in risky areas...but, it also prevents catastrophic mistakes.
I think RG recommends a 15 year fixed. I know I do. You used to get a half a point discount on the interest rate, and if you can't qualify for the higher payments, its a pretty good indicator that you might be in over your head on the 30 year.
Always get the 15 year fixed if you can afford it. If you start with a 30 fixed or an ARM as soon as you can refinance do so to a 15 year. Before you know it your home is paid for.
The market in Alaska is still solid...nothing is really coming down in price enough to make any big moves buying up income property or such...but I'm heading south this Thursday and will be looking everywhere I go for some deals.
C.H.U.D.
Yeah, but just think how much the late-night infomercial industry would have suffered.
Wasn't the head of Bear Stearns just saying 4 or 5 days ago that everything was groovy and that they had a good cushion to make it through these tough times? Sounds like another Enron story.
C.H.U.D.
Do you know of any books or websites that support this financial strategy?
To much of a good thing is an awesome thing
HOFer
I'm pretty sure you can find it in Motley Fool. The idea is that not only are you paying it off in 15 years as opposed to 30, the sheer number of dollars that you put into interest payments is cut WAY way down. My ex always said that we'd take the 30 and pay it like a 15, figuring that way if you hit a financial snag, you weren't forced to make the higher payment, but somehow he never got around to paying the 30 like a 15 (which sucks because we'd have a lot of money if he had).
"Greatness is not an act... but a habit.Greatness is not an act... but a habit." -Greg Jennings
Do you know of any books or websites that support this financial strategy?
My first personal finance book - Wealth Without Risk - Charles Givens. Much of it is getting pretty dated.
I love the Motley Fool. I subscribe to a couple of their newsletters. I've been a fan for years.
I've read Wealth Without Risk years ago...you want a classic...try The Richest Man in Babylon.
Consumer advocates Clark Howard and Dave Ramsey also favor getting a 15 year fixed if you can afford it.
About 5 and 1/2 years ago, we went from a 30 yr. fixed mortgage at 7.0% to a 15 yrd fixed mortgage at 5.0%. Our monthly payments went up just $34!
In the long run, we are saving thousands of dollars.
Wow! Yeah, you guys are probably saving a lot of money!!!Consumer advocates Clark Howard and Dave Ramsey also favor getting a 15 year fixed if you can afford it.
About 5 and 1/2 years ago, we went from a 30 yr. fixed mortgage at 7.0% to a 15 yrd fixed mortgage at 5.0%. Our monthly payments went up just $34!
In the long run, we are saving thousands of dollars.
Looks like Enron for these folks!
http://money.cnn.com/galleries/2008/...une/index.html
Not really. Most Enron investors were the little guys. Enron was a massive corporation with a lot of regular employees with stock options they were counting on for retirement/education/whatnot. The big wigs bailed before the ship sank and pocketed their cash, but the little guys all went down with the ship.
Bear Stearns did not do anything illegal...they simply accepted too much risk based on the housing market and got burned.
My signature has NUDITY in it...whatcha gonna do?
Catch Cramer last week.
"Don't be an idiot. Don't sell Bear."
My god, has anybody lost more money than this guy? Funny thing, i use to read his columns and think he was pretty smart. Now, i just think he is a talking head.
He actually said "Don't take your money out of Bear". He says he was responding to a question of whether people should pull their money out of Bear accounts, not whether they should sell Bear stock.
Ring the bells that still can ring
Forget your perfect offering
There is a crack, a crack in everything
That's how the light gets in - Leonard Cohen
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