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

To: Live2Sail who wrote (87100)	8/26/2007 9:28:58 AM
From: Pogeu Mahone	Read Replies (1) \| Respond to of 306849

No you won't!!!!!!!!!!!!!! If you get 10% down lenders say no thanks, the property could lose more then that in an instant. If you try you will find out you are wrong in spades! ======================== Lizzie, Why 30+% down? I'm sure that there are plenty of places to find jumbo loans. The question is what is the rate? Hell, I'll loan 500k if I can get 10%. Anybody need a jumbo? The rates at Wells Fargo have jumped from 6.8ish to 8ish from the bank. People who don't have $1M to drop on a house are reworking their spreadsheets to see if they can afford their mortgage, daycare, and Hawaiian vacations. Otherwise, they sit out and hope the prices go down. Buh-bye meals at French Laundry, Masa's, and Gary Danko.

To: Live2Sail who wrote (87100)	8/26/2007 12:59:34 PM
From: Travis_Bickle	Respond to of 306849

In Florida you can only have pre-payment penalties for the first two years so at 25 months the borrower refinances at a lower rate and you get your principal back and have to figure out what to do with it. You enjoyed a 10% return for 25 months, helped borrower improve his credit score. Not as big a deal if the loan was pooled and sold to investors but if you had been counting on that 10% for a number of years it's not good.

To: Live2Sail who wrote (87100)	8/26/2007 4:49:54 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

I'm sure that there are plenty of places to find jumbo loans. The question is what is the rate? Hell, I'll loan 500k if I can get 10%. Anybody need a jumbo? really? i'm curious.... would you settle for 10% if you felt the underlying collateral was a declining asset? personally, i think that is a LOT of risk to take on, for what, 5% over a no risk CD the mortgage lender Hudson City, i posted about earlier, is and HAS been required around 40% downpayment on $1M and over loans.. they will do just fine in the coming downdraft of 'impaired valuation' for underlying collateral, obviously.