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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (5912)	5/9/2004 10:32:53 AM
From: Haim R. Branisteanu	Read Replies (4) \| Respond to of 116555

mish I really question that some one can buy a $500,000 apartment or townhouse with no money down. It may be that he paid the 20% + fees and after closing applied for an home equity loan and it is also possible that the appraisal came in already higher than the price he paid for. If I am wrong please give me real life examples. I know there are FNM program for low income housing with 2% or 3% down but $500,000 is not a low income house!

To: mishedlo who wrote (5912)	5/9/2004 6:37:45 PM
From: yard_man	Read Replies (1) \| Respond to of 116555

>>A management consultant in Denver, Mr. Thomson bought at $500,000 townhouse last Friday in the suburb of North Cherry Creek. As many other first-time home-owners have done, Mr. Thomson put no money down. Instead he took out a first mortgage for 80 percent of the purchase price and paid the rest by taking a home equity loan against the new house. To reduce his monthly payments, and to qualify for a big enough loan, he took out an adjustable rate mortgage that requires him to make only interest rate payments." And what happens if we get a spike in interest rates? The bank will own the house << nobody wants to add this up. I'll add it up for you: if you are thinking you are going to make money long term by being in RYJUX or shorting government bonds you are stoopit!! The banks WILL NOT be allowed to fail. Other entities will be sacrificed first.