The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: russwinter who wrote (1265)	10/6/2003 8:45:04 AM
From: loantech	of 110194

Russ I don't know about foreigners but people are overbuying right and left in Portland and Vancouver. Not to this extent. But 97% Loan to value FHA loans and increasingly popular 100% loan to value one loan or piggyback 80% 1st and 20% 2nd's with zero down. Usually with an artificially raised sales price by a few thousand dollars so the seller will pay the closing costs. A majority of recent borrowers this past few years or so have zero to little equity going in and most are buying pricey enough housing to have a combined hosing and total debt to income ratio approaching 50%. That means on a family income of $5,000 monthly their debt load is $2,500. After tax income being $3250-$3500 this leaves $750.00-$1,000 per month for day care, food, utilities, insurance, entertainment, gas and oil and automobile upkeep. Of course nothing left here for savings we are just talking living payday to payday. If either spouse has their employment situation interrupted there will be an immediate crisis. Tom

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next