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oh snap! more housing crisis looms

Discussion in 'Members' Lounge' started by Briansol, Oct 15, 2008.

  1. Briansol

    Briansol Admins Admin VIP

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  2. cheese9988

    cheese9988 Senior Member VIP

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    Ouch! I'm glad I got a fixed rate.
     
  3. BigJ

    BigJ I'm just about that action Boss. VIP

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    69% of wachovia's option arms are in california. Anyone expect that? All the california sellers sold there to people outside of their means, and moved to Oregon, and Washington and paid cash and drove up our market prices.
     
  4. Justin66

    Justin66 The Hondaswap Canadian

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    Glad im in Canada..... im in an apartment anyway.
     
  5. invisibledemon

    invisibledemon Bored Moderator VIP

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    so, who wants to find a nice big piece of land far far away from anything and start a colony with me when we go completely under, bc im sure as hell not staying anywhere near a city when the shit hits the fan.
     
  6. phyregod

    phyregod !!YTINASNI

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    15 years fixed. 20% down. House payment no more than 25% of your household's takehome pay.

    no stress, no worries, no bullshit.
     
  7. invisibledemon

    invisibledemon Bored Moderator VIP

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    unfortunately, the masses arent that smart.
    stupid people do stupid things and greedy fucks looking to make a quick buck are eager to help them do that stupid shit.
     
  8. Briansol

    Briansol Admins Admin VIP

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    i'm at roughly 52% of my take home.

    somehow, i'm able to afford an m3 on top of that.... and a truck....

    no stress, no worries, no bullshit, no kids.
     
  9. phyregod

    phyregod !!YTINASNI

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    You bought too much house for your income. This is where I argue that the 27% overhead on your house payment could be going toward your retirement every month, but with the stock market going down faster than an aircraft missing a wing and on fire, its a shit arguement. Then again, I believe now is a good time to buy. Wallstreet is having a yard sale right now, pick some stuff up retardedly cheap.

    I'm talking in circles. Need coffee.
     
  10. nootrac22

    nootrac22 Well-Known Member VIP

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    that's right about where I'm at except it's 30yr fixed. Had I known that a bail out was comming I woulda bought a 250k home instead of 70k. Only in america do we reward the stupid.
     
  11. Celerity

    Celerity Well-Known Member

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    The bailout isn't putting any money or opportunity in the pocket of homeowners. I have a $240k house, and I'm not helped at all.
     
  12. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    I plan to be in my own home in 2-2.5 years. However, I don't get this, can one of you homeowners explain?
     
  13. Briansol

    Briansol Admins Admin VIP

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    arm loans are similar to interest-only.
    they are designed for short-term owners.

    live there for 3-5 years, just pay interest, and expect your sale price to cover 100% of the principle left over.

    well, prices fell.

    now, people owe 120% +/- of the value on these loans.

    When their intro 5 year period is up... BAM, 60% + change in monthly payments.

    figure an average mortgage is 1500 bucks. add 60% to that, and you're hitting 2200 ish a month for your payment now.
    most people can't afford an extra 700 a month, so round 2 of defaulting and bad loans looms.
     
  14. cheese9988

    cheese9988 Senior Member VIP

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    Why people would gamble on something like that. I hope these people can work second jobs.
     
  15. Briansol

    Briansol Admins Admin VIP

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    because america is stupid :) we've been through this.

    They don't care that they can't afford it. they WANT it.
     
  16. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    I'm 22 and realize a 3-5 year plan would be a bad idea. I also wouldn't just pay interest. I realize debt is inevitable when buying a home, but they don't penalize you for paying off a 30 year mortgage in >25. Pay more here and there, you pay less interest overall, get out of debt earlier, more capital in my pocket. I realize I'm making it more simple than it is, but its a very understandable concept.
     
  17. Briansol

    Briansol Admins Admin VIP

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    you're not an idiot. That's why you get it.


    Look at all the crap on tv. How many people have bought dick pills? or some ab machine? or some diet pill?

    THESE are the people that also buy these stupid loans.
     
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