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To: John F. Dowd who wrote (168236)	7/15/2002 1:48:49 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

RE:"You miss the point. If a person owns a home and has refinanced it with present rates at a higher valuation he has taken equity out of the home. If the price of the home goes down and the mortgage market turns around the loser will be the bank not the consumer. The banks on the other hand usually turn around and hedge this bet as soon as they can. I just don't see the drastic result of the RE bubble whatever that is. The problem with home building and rising prices is that there are fewer people able to build a home on ever fewer available lots where people want to live. Prices are going up around here but they are not resulting in sales. The RE market up here will not close at present high prices. This will not cause any great hardship as few people are buying on spec if at all they will either just take their house off the market or accept a lower price. Those that refinanced did not do so to turn around and sell their house the next day. But if they did they have already monetized a great deal of their home by the refinancing. I don't think you understand what is going on here. perhaps there is a job for you at the misinformation club that is also known as CNBC". RE:"I don't think you understand what is going on here. perhaps there is a job for you at the misinformation club that is also known as CNBC" You seem to be in denial...or even worse. Or maybe it's because you live up in Camelot. How do you know that prices are going up if there are no sales? Think about it. You seem to be ignoring what's going on... Money rushing into real estate and out of stocks. DOW is down another 330. How many times does the stock market have to hit you over the head? Have you found a job yet?

To: John F. Dowd who wrote (168236)	7/15/2002 4:12:44 PM
From: Ali Chen	Read Replies (1) \| Respond to of 186894

"If a person owns a home and has refinanced it with present rates at a higher valuation he has taken equity out of the home. ... But if they did they have already monetized a great deal of their home by the refinancing." What "taken equity" are you talking about? I do not think you understand what "the refinancing" is. It looks like you are confusing it with "2-nd mortgage". When re-financing a home, you do not take any equity nor monetize anything. You just _potentially_ save on future interest payments. Even more, you have to pay "closing costs", which frequently makes the whole deal meaningless, unless you are planning to pay off your home in another 30 years. And if you can afford to amortize your loan at higher rate, it also makes the closing costs worthless. And if you continue to stay in your home and pay monthly installements, bank (or whoever the lender is) never loses, whether your home goes down or mortgage markets "turn around", as you say. It never ceases to amaze me how some people are easy to throw opinions on subjects they have no clue about. I am no expert on mortgage issues by any means, but even to me the basic concepts of financing are clear enough to note your confusions. - Ali