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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (86146)	8/20/2007 7:43:45 AM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<Two rebuttal points: 1) The extra time allows home buyers to accumulate more capital and achieve higher income levels, putting them in better financial position to assume the mortgage. 2) A lower purchase price and higher interest rate improves the odds of refinancing later to a lower rate.>> __________________ Buyers SHOULD be taking time to accumulate more capital and achieve higher income levels.......the fact that they didn't do either one and still had access to credit to achieve unrealistic goals is THE problem, no? (Can't tell you how many people I've told during my lifetime to stop thinking about buying a house and get their income and savings levels up.) I'm afraid that your rebuttal #2 is overly optimistic......thinking that odds are "improved" of refinancing at a lower rate. Hello? Look at interest-rate history in this country. Just because interest rates have been historically and EXTREMELY low recently does not mean they will stay that way. We have a new world and a new view about risk, suddenly, and it probably won't change for a while.