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What I meant was, .25 / .75 is Fannie's add-on; individual lenders may price higher, depending on the "reps and warranties" they maintain with Fannie. Most lenders have indicated they're on-board to lock rates and accept submissions.

If we have one more up day, there will be a firmly established trend even more upwardly, but three days up is about all traders will go (lately) before they take profits. The price add on (to fee, not rate) for jumbo conforming is .25 to FRM and .75 to ARM.

Absolutely available. 5.875% at par, wholesale, on Friday.

How is subprimer a "victim of circumstances" (his words)? He purchased an asset that he hoped would appreciate in value. It didn't. If the asset had appreciated, as he planned, we wouldn't be having this conversation. He'd be making his payments and thanking the "super broker" for putting...

Why should they talk to subprimer? Does he have extenuating circumstances, which are defined as (1) layoff due to reduction in force; (2) death of the primary breadwinner; or (3) medical emergency? He's worrying about an event [rate increase] scheduled to occur THREE YEARS FROM NOW, but he...

Have you ever heard of a single FABULOUSLY wealthy person who did it by NOT employing leverage? I wasn't talking about you, IR, a mere tenant. <teasing> I'm talkin' the Big Dogs. I agree that for the average one-piece-of-real-estate-owning consumer, paying off the mortgage is, um, comforting.

<< You do realize that real estate does not always go up, right? >> Duh. I said, "You can't get FABULOUSLY wealthy without debt."

No, you just have to submit to an interview by the selling agent's preferred lender so that the seller isn't blind-sided by a prospective buyer who was "pre-qualified" by someone who didn't know what s/he was doing. Of course, the Countrywide loan officer will attempt to persuade you, through...

<< Man....how can you guys all suggest just walk away first without at least trying to get a short sell approved? They walk away with no impact to credit and they won't have to pay taxes on any of the losses....according to the bill that just got passed. >> It's important that this myth be...

reason, I'm merely suggesting to subprimer that he keep the proper perspective about what has happened instead of feeling like a victim. How has he been victimized? He had no money for a down payment, yet the "super broker" helped him acquire beneficial ownership in an ostensibly appreciating...

Well, my goodness, I'm certainly not going to lecture this erudite group on the power of leverage. Why bother--your mind's made up. < teasing >

<< Interesting that the CFO and the mortgage broker missed that little detail... >> No one ever got fabulously wealthy by paying off debt. :-)

What book, IR?

Correctomundo, ipoplaya. You 'splained it beautifully.

It's all about "cost of funds" and "return on investment." If you can earn more with your capital than you pay out in debt, you're getting richer even though you're in debt. So, yes, debt adds to your net worth if you manage debt correctly.

But he hasn't lost "his" home. subprimer was a homeowner in name only. He's no worse off (except for blemished credit) than if he was renting and the landlord said, "Time to move." (Always a risk when renting.) In fact, he probably has less into the deal than first and last month's rent...

xsocal land merchant wrote: Like I said in other posts to some people here looking to do Shorts/REOs they better get their "war face" on and be prepared to play tough because the banks will tell them to a hike. Also, in my experience, the banks' loss mit reps can tell if a hopeful buyer is...

The John Galt Plan Might Save US Financial System By Caroline Baum Let's face it: The Federal Reserve must be scared to death as it watches the financial system unravel. Unravel would appear to be the operative word as leverage proves to be as toxic on the way down as it was...

Wait a minute. "Stories like yours..." What "stories?" What has subprimer lost? Not a dime that I can see. He had no skin in the game (purchased with 100% financing) and he's still got no skin in the game. All that's going to happen is that subprimer will move out of his current dwelling...

He meant "No one with any ability to do anything about it."