More mortgage bad news.

[Winnie]

In my experience, those who opt for no down payment are similar in mind-set to those who claim no deductions on their W-4's or use a debit card in place of a credit card. There is nothing inherently wrong with any of these choices.

 

[Bob]

the down payment is but one piece of the puzzle. foreclosures are cutting across all demographic lines now.

 

[lerxst]

What ever happened to advanced planning? When I was coming up, we waited to get married until we had decent careers, then we saved for a house, then children were planned, or at least one spouse was able to pay the mortgage by that time usually because one knew they were going to stay home; diapers, doctor visits, school supplies, all factored in.

I know the best laid planned don't always work out; contraception fails, illness, job layoff, but some practicality needs to be exercised.
We're already paying through the nose for welfare programs for those who lives their lives without a care. I am tired of paying for it through government sponsored loan programs.

Just for the record, I take no issue with 3% down loan if one of the Borrowers' debt to income ratio is half what is required for the program.
FYI--- I am a licensed Mortgage Broker.[/quote

Mango what do you make of this "2nd wave" approaching of foreclosures regarding Alt-a's and option arms. interesting video i hope is not accurate

http://www.cbsnews.com/video/watch/?id=4668112n&tag=related;photovideo

 

[Miss Kitty]

No, mid -to high 600's are not subprime fodder, but my issue is the down payment amount. 3% is squat and with a tax write off incentive, FHA is setting it self up once again. What is so wrong with 5-10% down, even more? The less money put down, the higher the insurance rate; therefore more defaults and with the property prices so much lower, there is no reason to insure loans to $729k as conforming in high cost areas. Ginnie Mae, do not even get me started with them and those loans that are considered in Farm rural; Sowal being one of them. :roll:

I've always believed that saving up for the 10% or more down is a good indicator of how prepared a person is for home ownership. You can rent with a paycheck to paycheck budget. Home ownership involves a greater level of responsibilty and reward.

I once heard Gretchen Wilson say that it made her mad to hear people denigrate people for living in mobile homes. She said she's know many good people who dreamed of having their own piece of ground and mobile home to put on it. Nothing wrong with that IMO.

Someone who can't manage to save 10% for the down payment doesn't deserve to own a home IMO.

Owning a house isn't a right - it's something you earn with good financial planning, so if you can't afford the downpayment, maybe you <gasp> can't afford the house!

This old timer is applauding these posts. How was it that we had to put down 20% on our first home in 1979 and every home purchase since (maybe I am imagining this and Mr, K jsut does that)?

scootyb is right...owning a home is not a right! But think about all the no interest loans one can get to completely furnish these homes and buy the latest greatest cars, tech toys, etc. There is a pattern to all of this...I want it and I want it now. The American Dream has become a nightmare.

 

[SHELLY]

Someone who can't manage to save 10% for the down payment doesn't deserve to own a home IMO.

Owning a house isn't a right - it's something you earn with good financial planning, so if you can't afford the downpayment, maybe you <gasp> can't afford the house!

..how arcane...and how true.

.

 

[Yarmap]

I've always believed that saving up for the 10% or more down is a good indicator of how prepared a person is for home ownership. You can rent with a paycheck to paycheck budget. Home ownership involves a greater level of responsibilty and reward.

I once heard Gretchen Wilson say that it made her mad to hear people denigrate people for living in mobile homes. She said she's know many good people who dreamed of having their own piece of ground and mobile home to put on it. Nothing wrong with that IMO.

If these people want a home they need to start saving up now. Because in the next few years it is only going to get worse. Lets hope the economy will turn and slow this down.

Deutsche Sees 48% of All US Mortgages Underwater in 2011 : HousingWire || financial news for the mortgage market

 

[Andy A]

This old timer is applauding these posts. How was it that we had to put down 20% on our first home in 1979 and every home purchase since (maybe I am imagining this and Mr, K jsut does that)?

scootyb is right...owning a home is not a right! But think about all the no interest loans one can get to completely furnish these homes and buy the latest greatest cars, tech toys, etc. There is a pattern to all of this...I want it and I want it now. The American Dream has become a nightmare.

Sadly, how true, how true.

 

[Bob]

you could have put 20 percent down in '06 and you would still be underwater....

 

[Mango]

you could have put 20 percent down in '06 and you would still be underwater....

Yes, but much less likely to default than someone who didn't throw their own beaucoup bucks on the table.