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In United States
Registered May 19, 2010
turtledove's most recent comments:
- On 23 Oct 2014
3% down mortgages now available again,
But they'll require the buyers to carry PMI which wasn't the case in the mid 2000s when a piggy back loan would serve as a down instead. So if the buyers can't make it and housing takes a dip, PMI will make up the difference and the banks will be whole. It works.
I agree. As long as they don't violate reasonable standards of leverage then the borrowers can afford to make the monthly payment. The only losers might be people who suffer a sudden tragedy that makes it so they can no longer afford the debt. Without equity, it isn't ideal for a person who has to sell quickly, early on in a mortgage. But that's what PMI's for...
I think that the sign of impending doom will be if they start allowing people to have mortgage payments that are more than 30% of their monthly gross income. That's where you really increase the likelihood of default. Setting people up to live with NO income wiggle room makes it so that people can't afford their mortgage payments if ever there is any unexpected bill. People just cannot live cutting it so close that they have to choose between buying new tires and making their mortgage payments.
- On 21 Oct 2014
Deficiency Judgements (Post- Foreclosure),
This is so ridiculous. Someone has to pay the taxes. It's either the giver or the receiver. Since you cannot compel someone to give someone else a "gift," then it only makes sense that the receiver of the benefit should pay the taxes owed. Or would they prefer that the general public pay the taxes on their behalf?
- On 20 Oct 2014
Unable to Meet the Deductible or the Doctor, Thanks Obamacare,
It may be possible that the insurance system is a big part of what drives prices up.
I think that's exactly right! Insurance makes it possible for every person to be a deep pocket. No doubt, the medical community took advantage of that. There is a reason why medical costs bear no relationship whatsoever to people's earnings.