Essential Economics for Politicians

Bruddah IZ said:
Especially if youʻre the lender. They get paid every month by the borrower who also buys default insurance (PMI) for the lender as a part of their monthly payment. Does your asset do that?
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PMI is not always required.
 
espola said:
The bank can lose money if they foreclose on a property and sell it for less than the remaining principal on the loan.
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That’s why they get you to pay for their PMI so that they don’t lose money if that happens. Dude there is no way you’re a real estate guy.
 
messy said:
Why do you lick these brief little eras when things went “off the rails?” Why would you buy a house at a 17% mortgage? Try to make sense.
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We had an adjustable mortgage that got up to over 20% once. We were able to refinance after a couple of years to a loan below 10%, and an even lower rate than that when we refinanced in a deal that got some cash out of the equity. My experience from all that was that if you are holding an asset with positive equity and a good credit record then lenders will fight each other to give you money.
 
Bruddah IZ said:
People buy more homes when money is cheap, less homes when money is expensive. The housing industry responds to higher interest rates by lowering home prices. Questions?
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No questions. Advice. Pull your head out of your sophomoric readings and actually engage in commerce. Real estate and otherwise. You will learn much more that way.
 
espola said:
We had an adjustable mortgage that got up to over 20% once. We were able to refinance after a couple of years to a loan below 10%, and an even lower rate than that when we refinanced in a deal that got some cash out of the equity. My experience from all that was that if you are holding an asset with positive equity and a good credit record then lenders will fight each other to give you money.
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That’s the ticket! Why is it that we Dems understand how to do this and those guys don’t?
 
espola said:
We had an adjustable mortgage that got up to over 20% once. We were able to refinance after a couple of years to a loan below 10%, and an even lower rate than that when we refinanced in a deal that got some cash out of the equity. My experience from all that was that if you are holding an asset with positive equity and a good credit record then lenders will fight each other to give you money.
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That’s right. They’re always happy to ammortize another loan for you people who ignore the time value of money. The bank is in the lending business instead of the real estate business for a reason. And it’s not so you can make more money than they do. Just in case you RE gurus haven’t noticed.
 
Bruddah IZ said:
That’s right. They’re always happy to ammortize another loan for you people who ignore the time value of money. The bank is in the lending business instead of the real estate business for a reason. And it’s not so you can make more money than they do. Just in case you RE gurus haven’t noticed.
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Did you intend that to make sense to anyone but yourself?
 
Lion Eyes said:
I didn't get hurt jackass...
I still have my home in Camarillo that I bought in 1991
It's appraised for at least 4 times what I purchased it for...
Merry Christmas Einstein.
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You mean you didn’t sell it in ‘94? I think you may have some ideas to offer to some of your cronies on here. Or maybe Iz can convince you to be a “bank” and not a homeowner. LOL
 
Bruddah IZ said:
You will learn more if you do both.
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Are you a bank, or a real property owner, or both? I’ve never met a guy who is an individual mortgage lender! I’ve met some bank presidents and owners, but they are not “banks.” I’m curious as to how you evaluate our choice to be a bank or a property buyer.
 
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