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Hello, I am going to buy a house and can put about 25% down. Does it make sense? Can this give me a better rate? I know that putting down at least 20%  makes difference but is it worth putting more than 20% down

Hello. Is getting a full approval means a commitment for the borrower?
cookie monster
I think housing has stabilized here in downtown Minneapolis, how are things going in your neck of the woods?

Not that I think that it is a great investment just now, but I bought a condo not too long ago and do not regret it.
25th-Feb-2009 09:29 am - The crisis of credit:
tree in rain
This group has been quiet for a while, but I'm breaking the silence to share a video made by Jonathan Jarvis, a master's student at Art Center in Pasadena. He does an excellent visual presentation of the credit crisis and how it affected the economy and the housing market to lead to the current situation.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
22nd-Jun-2008 08:23 pm(no subject)
what's the best way to save a down payment for a house? or what did you do?

this year, my significant other and I decided to live solely off his income. first we put all my income onto my student loans, which were paid off in march. since then we have been stashing my income into a standard savings account at my bank (pnc). we have about $5k saved and I thought once we got a bit higher maybe we could move it to a money market account or something so it could earn more interest.
4th-Apr-2008 07:16 pm(no subject)
Hey all, I've got a first time homebuyer question:

(I'm buying my first house. I'm 23, making $32,000 a year and want to get something around $90,000-110,000. My credit is good (~730), I have no debts, and I have $22,000 in my bank accounts.)

I'm looking at two financing options, and wondering if I'm missing something:

[b]Broker:[/b] Will take 3% down, will require PMI, closing costs will be $2,000-3,000, APY will be ~5.75.

[b]Bank:[/b] Requires 5% down, requires no PMI, will pay closing costs, APY ~6.125.

Assuming I'm not planning on pouring money into equity, I don't see how the bank isn't a phenomenally better option. If the PMI is $40/month, it seems like the broker would have to offer a rate that was ~7/8 of a point less just to make up the difference in monthly payments.

Is there something I'm missing here? Is the bank simply the best way to finance, or are there other factors that might make a broker a better option?

7th-Mar-2008 02:51 am(no subject)
hello! just found this community. thanks for all the great info!

here's a question -- does one's home equity just 'drop'? or do you need a re-appraisal in order for that to happen?

we put down 10% on our house last year, and I'm sitting here watching the news about house prices dropping 10 percent in some areas (not mine yet, i dont think) and wondering if one day we'll suddenly be sitting on something where we owe more than our mortgage.

we would like to refinance if rates drop, but if that means opening the door to an appraisal that comes in less than last year's appraisal, i would reconsider it.
29th-Feb-2008 07:12 am(no subject)
Really cool resource


The housing market continues to tumble in the Bay Area. New statistics show home sales dropping to a 20 year low and housing prices falling nearly 9 percent and it doesn't sound like things are going to get better any time soon.

Hundreds of people packed a hotel conference room in Oakland to bid on more than 200 Bay Area foreclosed homes.

California had the fourth most foreclosure listings in the nation last year. And with more homes for sale, people were here looking for a bargain.

<span class="noscript-show"> <a href="http://log.go.com/log?srvc=otv&guid=CAF29C56-7D93-4B2A-8B94-9C148B534E41&drop=0&addata=2462:64501:381950:64177&a=1&goto=http://ad.doubleclick.net/jump/wn.nat.abc/ToyotaNC003_ABC7News_ROS_300x250;sz=300x250;ord=2008."> <img style="display: none;" src="http://ad.doubleclick.net/ad/wn.nat.abc/ToyotaNC003_ABC7News_ROS_300x250;sz=300x250;ord=2008." alt="" border="0" height="250" width="300"></a> </span>

"I'm looking at paying 50 cents on the dollar," says Sanjoi Kaushish, home buyer.

Kaushish was outbid for his desired homes in the East Bay, but Dave Gomberg landed a condo in bay point.

"It's a two bedroom, one bath in Baypoint," says Dave Gomberg, home buyer.

But an economist working for real estate research firm Beacon Economics says the California market has not hit rock bottom and the stats back him up.

"Your average homeowner in San Francisco, if they wanted to buy the average home, would have to have spent 70 percent of their household income to pay for that home," says Christopher Thornberg, Beacon Economics.

Real estate information company, DataQuick, shows total sales in the Bay Area are down close to 42 percent from last January and dropped more than 29 percent since December.

And when homes do sell, it's for a lot less. Prices dropped about 6.5 percent from December and 8.5 percent from January.

That means, on average, homes in the Bay Area lost $51,000 dollars in value in a year.

"The reality is prices are going to fall 35 percent in the state and in the Bay Area. I suspect they are going to fall between 25 and 30 percent before this is all over," says Thornberg.

So, people who are trying to buy a home at rock bottom may have to wait another year. Thornberg believes the Bay Area housing market will begin to stabilize in 2009. He also advises sellers to sell as fast as possible because prices will only drop even more.

(Copyright ©2008 KGO-TV/DT. All Rights Reserved.)
cookie monster
The Recessionary Macro Effect of the Worst U.S. Housing Bust Ever
Nouriel Roubini | Oct 28, 2007
A friend of mine who is a senior professional in one of the largest financial institutions in the world has sent me privately – and confidentially - the following email messages. Like me, he predicted a year ago that this would be the worst housing recession in US history and described a bust process that would go through 4 phases. Here is the way he is putting it:

It appears that we are now entering phase 2 on the timeline for the housing bust:

Phase 1: rising mortgage defaults, homes prices start falling, sale volumes falls, housing starts and permits decline.

Phase 2: home-builders’ bankruptcies, housing starts and permits crash, substantial layoffs in construction and real estate-related fields (mortgage brokers, mortgage lenders, etc.).

Phase 3: substantial price declines in major metro areas, large rise in defaults of prime but low-equity mortgages.

Phase 4: large-scale government intervention to help households going bankrupt. This is a political phenomenon, so the timing and nature of this cannot be reliably forecast.

Evidence of financial distress and default among homebuilders in phase 2:
Read more...Collapse )
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