Soylent Green Is People_IHB
New member
Still an issue putting pictures in, but I'm sure I'll get the hang of it somehow
HELP - Loan Origination Fee
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LoudRoar_IHB
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no, THIS is a huge image that spoils everything:
<img src="http://imgur.com/dISSy.jpg" alt="" />
<img src="http://imgur.com/dISSy.jpg" alt="" />
Geotpf_IHB
New member
[quote author="Soylent Green Is People" date=1253155142]I recommend ARM loans where appropriate. ARM loans in today's environment are a reasonable risk choice for some.
Sub $417k ARM's are at 3.75% (Conforming, 1.0 point or so...) with a 2% cap per year. Assuming worse case scenario 3.75, 5.75, 7.75 the average rate over 7 years is 4.6% - lower than today's 5.0% 30 fixed. Seven years is a long, long time. If the rate goes to 9.75, it's cap, the average is 5.25%. Depending on circumstance an ARM can be a correct choice.
I've said earlier that handguns aren't for everyone, neither are ARM loans. Both handguns and ARM loans can work well in the right circumstance. Informed and educated buyers are best served when given all choices, including ARM's.
That said, the ARM cost to buy rate down is tossing good money after bad. If the break even point is 4 years or longer. Pass.
My .02c
Soylent Green Is People</blockquote>
But, in most central SoCal locations (that is, not the Inland Empire or Palmdale/Lancaster), wouldn't it be cheaper to rent if one is only going to be in a property for seven years or less?
That is, it seems to me that an ARM only makes sense if property values are increasing and/or monthly costs are below rental parity, and you plan on living in the house short term. Otherwise, renting (if you are going to be there for a short period) or a 30 year fixed (if you are going to be there until you die) make more sense, IMHO.
Sub $417k ARM's are at 3.75% (Conforming, 1.0 point or so...) with a 2% cap per year. Assuming worse case scenario 3.75, 5.75, 7.75 the average rate over 7 years is 4.6% - lower than today's 5.0% 30 fixed. Seven years is a long, long time. If the rate goes to 9.75, it's cap, the average is 5.25%. Depending on circumstance an ARM can be a correct choice.
I've said earlier that handguns aren't for everyone, neither are ARM loans. Both handguns and ARM loans can work well in the right circumstance. Informed and educated buyers are best served when given all choices, including ARM's.
That said, the ARM cost to buy rate down is tossing good money after bad. If the break even point is 4 years or longer. Pass.
My .02c
Soylent Green Is People</blockquote>
But, in most central SoCal locations (that is, not the Inland Empire or Palmdale/Lancaster), wouldn't it be cheaper to rent if one is only going to be in a property for seven years or less?
That is, it seems to me that an ARM only makes sense if property values are increasing and/or monthly costs are below rental parity, and you plan on living in the house short term. Otherwise, renting (if you are going to be there for a short period) or a 30 year fixed (if you are going to be there until you die) make more sense, IMHO.
CM_Dude_IHB
New member
Loudroar, that picture is SWEET.
Nude_IHB
New member
[quote author="Soylent Green Is People" date=1253173245]Still an issue putting pictures in, but I'm sure I'll get the hang of it somehow</blockquote>
Instructions are <a href="http://www.irvinehousingblog.com/forums/viewthread/2018/#47675">here</a>, with screenshots and everything.
Instructions are <a href="http://www.irvinehousingblog.com/forums/viewthread/2018/#47675">here</a>, with screenshots and everything.
stepping_up_IHB
New member
what about 10/20 interest only loans? I saw these at 5.5 yesterday. Is 10 years a safe enough hedge against price declines/future interest rates?
LoudRoar_IHB
New member
[quote author="stepping_up" date=1253262944]what about 10/20 interest only loans? I saw these at 5.5 yesterday. Is 10 years a safe enough hedge against price declines/future interest rates?</blockquote>
usually 2 problems. The interest only period is the only lock you get on the interest rate, so 10 years of interest only, then the interest rate is adjusted. A double whammy when considering the loan is recast for 20 years fixed at a rate you cannot predict. Which of course is interest + principal.
like IR said, it depends on your needs. But if anything, the housing crisis proves you cannot predict anything, and shouldn't gamble with your home. Something has to happen after the first 10 years. Can you sell, who knows... only time.
usually 2 problems. The interest only period is the only lock you get on the interest rate, so 10 years of interest only, then the interest rate is adjusted. A double whammy when considering the loan is recast for 20 years fixed at a rate you cannot predict. Which of course is interest + principal.
like IR said, it depends on your needs. But if anything, the housing crisis proves you cannot predict anything, and shouldn't gamble with your home. Something has to happen after the first 10 years. Can you sell, who knows... only time.