zubs said:So the 40%~50% drop people were wrong...what new economic distortion (new normal) has this created?
I think the new normal is interest rates will never go above 4.5% again, because if it does USA ceases to exist.
zubs said:And that's why 5/1 arm guys are the smart guys in the room....even though i got a fixed rate...i r dumb..
I left money on the table...approximately $300/month after taxes according to Qwerdog
zubs said:And that's why 5/1 arm guys are the smart guys in the room....even though i got a fixed rate...i r dumb..
I left money on the table...approximately $300/month after taxes according to Qwerdog
irvinehomeowner said:We need some guy to start an Irvine housing blog that talks about the details of how 5/1 ARMs are going to implode and cause a foreclosure tsunami in 5 years when they reset and homeowners can't afford the new payments.
Only problem is according to the other thread, the 5/1s are a very low percentage of borrowers.
#dejavu
irvinehomeowner said:We need some guy to start an Irvine housing blog that talks about the details of how 5/1 ARMs are going to implode and cause a foreclosure tsunami in 5 years when they reset and homeowners can't afford the new payments.
Only problem is according to the other thread, the 5/1s are a very low percentage of borrowers.
#dejavu
qwerty said:If mortgage rates go up the whole US housing market implodes. Too many people with sub 4% mortgages. People will not sell because they won't be able to afford the new rate without some drastic price reduction. Then the govt will intervene again and rates would come back down.
5/1 Arm for life!
Perspective said:qwerty said:If mortgage rates go up the whole US housing market implodes. Too many people with sub 4% mortgages. People will not sell because they won't be able to afford the new rate without some drastic price reduction. Then the govt will intervene again and rates would come back down.
5/1 Arm for life!
I generally agree, but a high rate high inflation decade isn't outside of the realm of possibility. i.e. Inflation could soar (the Fed is certainly trying!) taking incomes and therefore house prices up; while rates could increase dramatically concurrently.
So, the appraisal won't be a concern in year seven of your ARM, because your house' value has increased so much, and your rising income affords you the ability to manage the annually increasing mortgage payment, but your next door neighbor will be sitting pretty in their 30-year fixed at 3.5% mortgage.
Panda said:Inflation will soar, but i don't see that happening for a while. How do i know this? The commodity cycle peaks in a 30 year cycle, It peaked in 1920, 1950, 1980 and recently in 2011 and the next peak will take place around 2035 - 2040 when most of us here are old in our 60s. So yes, I do see another acceleration of inflation taking place, but it will be gradual and will start to accelerate between 2025 - 2050. These Gold bugs are correct that an ounce of gold will reach $5,000 ounce eventually, but not any time soon. Most of us here will be old grandparents in our 60s when this happens. Hopefully IHO finally gets to live in his 3 car wide garage dream in Irvine by then.
Perspective said:qwerty said:If mortgage rates go up the whole US housing market implodes. Too many people with sub 4% mortgages. People will not sell because they won't be able to afford the new rate without some drastic price reduction. Then the govt will intervene again and rates would come back down.
5/1 Arm for life!
I generally agree, but a high rate high inflation decade isn't outside of the realm of possibility. i.e. Inflation could soar (the Fed is certainly trying!) taking incomes and therefore house prices up; while rates could increase dramatically concurrently.
So, the appraisal won't be a concern in year seven of your ARM, because your house' value has increased so much, and your rising income affords you the ability to manage the annually increasing mortgage payment, but your next door neighbor will be sitting pretty in their 30-year fixed at 3.5% mortgage.
eyephone said:Did you consider the price of oil might go up?
Panda said:Inflation will soar, but i don't see that happening for a while. How do i know this? The commodity cycle peaks in a 30 year cycle, It peaked in 1920, 1950, 1980 and recently in 2011 and the next peak will take place around 2035 - 2040 when most of us here are old in our 60s. So yes, I do see another acceleration of inflation taking place, but it will be gradual and will start to accelerate between 2025 - 2050. These Gold bugs are correct that an ounce of gold will reach $5,000 ounce eventually, but not any time soon. Most of us here will be old grandparents in our 60s when this happens. Hopefully IHO finally gets to live in his 3 car wide garage dream in Irvine by then.
Perspective said:qwerty said:If mortgage rates go up the whole US housing market implodes. Too many people with sub 4% mortgages. People will not sell because they won't be able to afford the new rate without some drastic price reduction. Then the govt will intervene again and rates would come back down.
5/1 Arm for life!
I generally agree, but a high rate high inflation decade isn't outside of the realm of possibility. i.e. Inflation could soar (the Fed is certainly trying!) taking incomes and therefore house prices up; while rates could increase dramatically concurrently.
So, the appraisal won't be a concern in year seven of your ARM, because your house' value has increased so much, and your rising income affords you the ability to manage the annually increasing mortgage payment, but your next door neighbor will be sitting pretty in their 30-year fixed at 3.5% mortgage.
Perspective said:irvinehomeowner said:We need some guy to start an Irvine housing blog that talks about the details of how 5/1 ARMs are going to implode and cause a foreclosure tsunami in 5 years when they reset and homeowners can't afford the new payments.
Only problem is according to the other thread, the 5/1s are a very low percentage of borrowers.
#dejavu
~5% of borrowers in 2016 are choosing ARMs:
http://www.elliemae.com/resources/origination-insight-reports