IrvineRenter_IHB
New member
<em>" Hahaha! How did you know? That's where I heard it."</em>
Some predictions are all too easy.
Some predictions are all too easy.
Fed lowers rates
- Thread starter waitingtill08_IHB
- Start date
graphrix_IHB
New member
<p>An interest rate update for this thread:</p>
<p>The lender I quoted for the Fannie Mae conforming 30 year fixed is currently 6.625% vs. 6.75% at par. </p>
<p>The lender I quoted for jumbo 30 year fixed is still 7.5% and it will still cost you an arm and a leg. First borns may get you 7.375%.</p>
<p>The lender I quoted for the Fannie Mae conforming 30 year fixed is currently 6.625% vs. 6.75% at par. </p>
<p>The lender I quoted for jumbo 30 year fixed is still 7.5% and it will still cost you an arm and a leg. First borns may get you 7.375%.</p>
awgee_IHB
New member
<p>Ah, c'mon. Donchoo get it. The answer to insolvency is to borrow more money. </p>
<p>Example: The Jones have been spending more than their income, and monthly payments are now more than monthly income. What is the solution? Easy, smeazy. Get their interest rates lowered by .5% and borrow more to make the payments. And keep repeating this process until their wages increase enough to overcome their payments.</p>
<p>How can you guys be so blind?</p>
<p>What? You say the banks don't want to lend the Jones more? Well, that is easy too. Just keep lowering the rate at which you say the banks borrow from one another and they will come around. And it makes no difference that they were already loaning to one another at 4.85% already.</p>
<p>What's that? What if the banks don't come around? Boy, you don't get it, do you? We have mathematical models showing the banks will always do what we think they should do? We learned these mathematical models in college so they will always be correct.</p>
<p>Example: The Jones have been spending more than their income, and monthly payments are now more than monthly income. What is the solution? Easy, smeazy. Get their interest rates lowered by .5% and borrow more to make the payments. And keep repeating this process until their wages increase enough to overcome their payments.</p>
<p>How can you guys be so blind?</p>
<p>What? You say the banks don't want to lend the Jones more? Well, that is easy too. Just keep lowering the rate at which you say the banks borrow from one another and they will come around. And it makes no difference that they were already loaning to one another at 4.85% already.</p>
<p>What's that? What if the banks don't come around? Boy, you don't get it, do you? We have mathematical models showing the banks will always do what we think they should do? We learned these mathematical models in college so they will always be correct.</p>
lendingmaestro_IHB
New member
<p>graph-</p>
<p>If you go retail thru my bank you can easily get 6.375% with no points. Full-Doc. </p>
<p>Jumbo is still above 7% through retail, same as you quoted above.</p>
<p>This is why California is owned big time. Banks just don't have enough in deposits to offset the loans. They just can't write it. Can we get access to a chart that shows the average mortgage balance per household vs the average LIQUID savings account (checking, savings, money market, and cd) per household? We all know what it would look like. Banks can't have negative net worth like people can.</p>
<p>Borrowers are simply at the mercy of those buying loans (issuers of credit.) The banks are underwriting and processing the loans, but they aren't truly issuing the credit. Nothing that I have seen in the last 3 weeks has made it more likely that invesment firms will start buying ABS and MBS paper again. Until that happens, the jumbo market will still be at a standstill.</p>
<p>If you go retail thru my bank you can easily get 6.375% with no points. Full-Doc. </p>
<p>Jumbo is still above 7% through retail, same as you quoted above.</p>
<p>This is why California is owned big time. Banks just don't have enough in deposits to offset the loans. They just can't write it. Can we get access to a chart that shows the average mortgage balance per household vs the average LIQUID savings account (checking, savings, money market, and cd) per household? We all know what it would look like. Banks can't have negative net worth like people can.</p>
<p>Borrowers are simply at the mercy of those buying loans (issuers of credit.) The banks are underwriting and processing the loans, but they aren't truly issuing the credit. Nothing that I have seen in the last 3 weeks has made it more likely that invesment firms will start buying ABS and MBS paper again. Until that happens, the jumbo market will still be at a standstill.</p>
graphrix_IHB
New member
<p>LM,</p>
<p>Yeah I know that you can find better rates on conforming but I just went back to the same lender so that the rates show the actual change. If I were still in the biz I could match the 6.375% no points full doc conforming loan. </p>
<p>BTW have you seen <a href="http://www.abalert.com/Public/MarketPlace/MarketStatistics/index.cfm">this link I've posted before</a>? Click on the invidual charts and it will give you an excel spreadsheet with the previous years numbers. UGLY!</p>
<p>Yeah I know that you can find better rates on conforming but I just went back to the same lender so that the rates show the actual change. If I were still in the biz I could match the 6.375% no points full doc conforming loan. </p>
<p>BTW have you seen <a href="http://www.abalert.com/Public/MarketPlace/MarketStatistics/index.cfm">this link I've posted before</a>? Click on the invidual charts and it will give you an excel spreadsheet with the previous years numbers. UGLY!</p>
lendingmaestro_IHB
New member
<p>are you saying banks will have negative net worth or the gov't will allow this?</p>
<p> </p>
<p> </p>
effenheimer_IHB
New member
Isn't that called "fractional reserve lending?"
Trooper_IHB
New member
<p>LM, I think this clip (IR) from another thread indicates that neg net worth is the norm....<a href="http://forums.irvinehousingblog.com/discussion/930/money-as-debt/#Item_2">Irvine Housing Forums - Money As Debt</a></p>
<p>Like Eff said, "fractional reserve lending"..... </p>
<p>Am I missing something ?</p>
<p>Like Eff said, "fractional reserve lending"..... </p>
<p>Am I missing something ?</p>