|
Replies: 30
| visibility 2889
|
All-In [42028]
TigerPulse: 100%
Posts: 6286
Joined: 12/8/20
|
Buy a Home
6
6
May 29, 2024, 5:15 PM
|
|
News out today is one of the biggest lenders is going to no money down on a 30year loan with a balloon payment.
Back the truck up.
Did we not just go through that years back? Folks could not make the payments on those, and the houses became sub prime in market value. Billions of dollars of tax money went in to bail out and reward the predator lenders. Politicians of course got their share.
Apparently it is time to pull that scam again.
I feel for folks wanting a home when they can't afford one. They need to save and wait until they can, of course that means working jobs. Buying a home you can't afford with payments you can't make will always lead to disaster.
|
|
|
|
 |
All-TigerNet [12476]
TigerPulse: 100%
Posts: 5316
Joined: 10/31/03
|
Re: Buy a Home
2
May 29, 2024, 5:35 PM
|
|
And then you have to max out the credit cards to fill it up with new furniture and BIG TVs.
|
|
|
|
|
|
All-In [27772]
TigerPulse: 100%
Posts: 10264
Joined: 2/14/13
|
Re: Buy a Home
May 30, 2024, 6:11 PM
|
|
No no no...you roll all that nice new furniture and TV's into the mortgage too. I mean why not pay on a 70in for 30 years?
|
|
|
|
|
|
Orange Blooded [2448]
TigerPulse: 100%
Posts: 2003
Joined: 11/27/22
|
Re: Buy a Home
1
May 29, 2024, 5:42 PM
|
|
People can't save anymore....it's " I gotta have it now!"
|
|
|
|
|
|
Asst Coach [749]
TigerPulse: 97%
Posts: 442
Joined: 1/23/24
|
Re: Buy a Home
1
May 29, 2024, 6:12 PM
|
|
I think a lot of people don’t make enough to cover basic living expenses, so savings out of the question for them.
Obviously they shouldn’t be buying a house.
|
|
|
|
|
|
CU Guru [1706]
TigerPulse: 100%
Posts: 1950
Joined: 7/11/13
|
Re: Buy a Home
3
May 29, 2024, 6:29 PM
|
|
This !! And even when you have two really good incomes in a household you still use the CC to pay certain things and get certain things .. not even extravagant expenses… and a house that would cost 180k 5-6 years ago will cost you 400+ now… a normal cookie cutter home in these neighborhoods with decent credit runs 2000-2300 a month on the lower end , that’s insane !! On top of all the normal living expenses and god forbid you have a decent vehicle with a payment. Or a kid that’s 1200-1500 a piece for daycare … math just don’t math too well
|
|
|
|
|
|
110%er [6761]
TigerPulse: 100%
Posts: 9131
Joined: 5/28/10
|
Re: Buy a Home
May 30, 2024, 5:28 PM
[ in reply to Re: Buy a Home ] |
|
They are stuck between a rock and a hard place. If they buy a home, they go into crippling debt for the rest of their lives. If they choose to rent, the only other option to put a roof over their heads, they are paying ridiculous rent. I was looking at apartments and houses for rent in Greenville and the cost was insane. almost all of them were between 2-3k not including utilities.
|
|
|
|
|
|
CU Guru [1851]
TigerPulse: 98%
Posts: 2489
Joined: 1/2/20
|
Re: Buy a Home
May 30, 2024, 5:23 PM
[ in reply to Re: Buy a Home ] |
|
You’re right. People can’t save now. For the average middle class American saving isn’t possible. It takes at least a 20k down payment to buy a house. The average American household income after taxes is 64,240$. Most families have 2 people working. That’s 32k a piece. That’s less than 3k a month. Kinda hard to save up 20k on 3k a month when you have a 1,200 rent, a 300$ car payment, 200$+ insurance. 250$ in gas. That’s 2k gone. Without mentioning utilities, food, and hygiene. Or car maintenance. Or child care.
What a ridiculous comment.
|
|
|
|
|
|
110%er [6761]
TigerPulse: 100%
Posts: 9131
Joined: 5/28/10
|
Re: Buy a Home
May 30, 2024, 5:31 PM
|
|
They dont care. They are living the good life because they bought their house in 1970 for a quarter of what one would cost today.
|
|
|
|
|
|
All-TigerNet [10712]
TigerPulse: 100%
Posts: 7879
Joined: 12/5/15
|
Re: Buy a Home
11
11
May 29, 2024, 5:43 PM
|
|
Yes, we went through that. They were called “liars loans”. It worked like this: 1. Liar says he has money and job. 2. Lender loans the liar hundreds of thousands of dollars. 3. Lender resells the insanely risky debt to a 3rd party. 4. 3rd party chops up millions of insanely risky debts and repackages them as triple A investment to be sold on the market. 5. Government Agency that is responsible for verifying what is what, is drunk, stoned and asleep at the wheel and certifies that horse apples are diamond encrusted platinum bars. 6. Rubes by the bad debts because the government said they were diamond encrusted platinum bars. 7. Liar defaults on his debt because he’s a liar and he has no money or job. 8. The horse apples are revealed to be worthless because they were always worthless.
9. Rube loses his *** because horse apples are worthless. 10. Taxpayers pay for everything. 11. Lenders, resellers and government workers get bonuses, raises and promotions.
12. Lenders, resellers and government workers need more bonuses, raises and promotions, so they decide to do it again.
|
|
|
|
|
|
110%er [6966]
TigerPulse: 98%
Posts: 4889
Joined: 2/20/24
|
Re: Buy a Home
May 29, 2024, 5:45 PM
|
|
Sorry for the post below. I see yours. Thanks
|
|
|
|
|
|
110%er [7202]
TigerPulse: 100%
Posts: 6463
Joined: 9/21/04
|
Re: Buy a Home
May 30, 2024, 2:38 PM
[ in reply to Re: Buy a Home ] |
|
Astute assessment, however, I feel now it’s because the pool of qualified buyers is starting to shrink to dangerously low levels, and they need more people to qualify for loans, otherwise housing prices are going to collapse
|
|
|
|
|
|
110%er [6966]
TigerPulse: 98%
Posts: 4889
Joined: 2/20/24
|
Re: Buy a Home
May 29, 2024, 5:44 PM
|
|
I have a fixed 30 year loan at a solid interest rate. Anyway, so how does a balloon payment work?
|
|
|
|
|
|
Hall of Famer [22754]
TigerPulse: 100%
Posts: 7717
Joined: 3/3/99
|
A balloon attached to an air pump is shoved up your azzz ... it'll pop some day.
1
May 29, 2024, 5:55 PM
|
|
|
|
|
|
|
|
All-TigerNet [10712]
TigerPulse: 100%
Posts: 7879
Joined: 12/5/15
|
Re: Buy a Home
1
May 29, 2024, 6:01 PM
[ in reply to Re: Buy a Home ] |
|
I have a fixed 30 year loan at a solid interest rate. Anyway, so how does a balloon payment work?
You pay an artificially low payment for an agreed upon time, then pay a giant (balloon) payment at the end.
|
|
|
|
|
|
CU Medallion [60975]
TigerPulse: 100%
Posts: 40400
Joined: 11/12/04
|
with the expectation that you would sell the home for a profit before then.
1
May 29, 2024, 7:04 PM
|
|
If not just walk away like it's 2008.
|
|
|
|
|
|
110%er [6465]
TigerPulse: 100%
Posts: 5947
Joined: 7/3/12
|
Balloon payments are rare anymore, because they are a terrible option
May 30, 2024, 2:28 PM
[ in reply to Re: Buy a Home ] |
|
basically you start your loan with a nice payment at what is hopefully a very accessible mortgage payment....but then at a certain point, determined in the loan documents, the payment balloons to a larger payment, much larger, and this is your new payment to payout the loan over the duration.
Basically a backloaded deal on a property that will increase in value, so therefore the loan company has no risk at all in doing this because if balloon payment causes a default the tenant is kicked out and ownership goes to whatever banks owns it at the time and they start the process all over at a higher amount and make even more money.... this balloon payment just exacerbates the problem, either you can or you cannot afford the price of a home (if it takes a balloon structure to afford the home, then you cannot afford the home)
|
|
|
|
|
|
Heisman Winner [114796]
TigerPulse: 100%
Posts: 74781
Joined: 9/10/03
|
Re: Buy a Home
1
May 29, 2024, 6:21 PM
|
|
lots of peole going variable rate now, they are gambling that interest rates will go down,and they should in time, but they are paying 2300 a month fro a 375k home. Bt that is also what rent costs, so it is still nto the dumbest thin, especially if we go through continued inflation. We will never have %3.75 consumer home loan rates again tho. 
|
|
|
|
|
|
Starter [375]
TigerPulse: 97%
Posts: 217
Joined: 3/18/14
|
Re: Buy a Home
2
May 30, 2024, 9:25 AM
|
|
I had a 2.25% loan. Sold when I relocated to SC and rates were in the 4-5% range. Lived in a condo for over a year until I could pay cash for a house. Fortunate to be able to pay cash and get out of all the costs associated with a mortgage. I couldn't stomach going from 2.25% to the 7's.
|
|
|
|
|
|
Legend [16002]
TigerPulse: 100%
Posts: 8595
Joined: 11/30/98
|
Re: Buy a Home
4
May 29, 2024, 6:39 PM
|
|
it all boils down to living beyond you means. these same people vote too. LMAO. banks should be allowed to fail.
|
|
|
|
|
|
Hall of Famer [23421]
TigerPulse: 100%
Posts: 17046
Joined: 12/2/00
|
Lets also ban any politician that filed bankruptcy
5
5
May 29, 2024, 8:14 PM
|
|
If you can’t keep your own financials in order, you shouldn’t be trusted with other people’s money.
|
|
|
|
|
|
Orange Blooded [2893]
TigerPulse: 100%
Posts: 1702
Joined: 12/17/21
|
Re: Lets also ban any politician that filed bankruptcy
2
May 29, 2024, 9:31 PM
|
|
^^^^^ YES 100% ^^^^ ban them
|
|
|
|
|
|
Orange Blooded [2605]
TigerPulse: 100%
Posts: 3450
Joined: 9/5/04
|
Re: Buy a Home
1
May 29, 2024, 8:06 PM
|
|
Once my $300k student loan is forgiven, I'm in!
|
|
|
|
|
|
110%er [5546]
TigerPulse: 100%
Posts: 4789
Joined: 10/28/02
|
The Fix is in Gents. Always has been and always will be.
1
May 29, 2024, 10:16 PM
|
|
Wall Street just gets their hands slapped and then goes back to the old ways when the Feds aren't looking. Do not ever take a balloon payment loan. It is a guaranteed path to bankruptcy and foreclosure. Sadly, too many people see this as the only way to get a house.
|
|
|
|
|
|
110%er [9383]
TigerPulse: 100%
Posts: 5373
Joined: 9/3/03
|
But, but, it's your right to own a home!
May 30, 2024, 9:53 AM
|
|
Not sure where you find that "right" anywhere, but that's the argument. Same as a right to a higher education, even if you don't really need it to do what you want and you end up in 5-6 figures of debt as a result. And you have a right to health care, etc, etc.
|
|
|
|
|
|
110%er [6931]
TigerPulse: 95%
Posts: 6542
Joined: 10/7/07
|
Re: But, but, it's your right to own a home!
1
May 30, 2024, 9:59 AM
|
|
Deadbeats think everything is their "right". Including the "right" to murder unborn children.
|
|
|
|
|
|
Orange Blooded [3441]
TigerPulse: 100%
Posts: 2914
Joined: 7/10/11
|
Re: Buy a Home
1
May 30, 2024, 1:44 PM
|
|
Easy to tell people to save. But actually attempting to in this economy is ridiculously hard for the common working class. Most politicians don't care and just want to rake the next cash flow into their pockets. Most voters don't really know what they're voting for because they're too worried about "social issues" and bickering about petty matters that ultimately DON'T matter than they are about affording basic necessities that affects everyone. One day I'd like to be able to afford my dream home that I've always wanted since I was a child. But I'm afraid I was born in the borderline dystopian era of the world.
|
|
|
|
|
|
Walk-On [110]
TigerPulse: 100%
Posts: 137
Joined: 11/30/98
|
Re: Buy a Home
May 30, 2024, 2:41 PM
|
|
Nobody seemed to care in the early 1980s when I bought a house with an 11.5% mortgage. It was not easy, but the wife and I made it work.
|
|
|
|
|
|
Associate AD [845]
TigerPulse: 97%
Posts: 646
Joined: 10/9/19
|
Re: Buy a Home
May 30, 2024, 2:50 PM
|
|
Yeah, my first house mortgage in 1978 was 9.5% I believe A year later I was glad had it.
What we have now and then is what i think is unbridled capitalism. Make all the $$$ you can for the corporation with no regard for the consumer. IMHO
|
|
|
|
|
|
110%er [6465]
TigerPulse: 100%
Posts: 5947
Joined: 7/3/12
|
2 insanely huge differences between 1980's and now
1
May 30, 2024, 2:52 PM
[ in reply to Re: Buy a Home ] |
|
houses were reasonably priced even for the time.
Interest rates on YOUR money in the bank was making at minimal 4%
Now home prices are insanely inflated and interest rates on savings are insanely low. Unless you have hundred of thousands of dollars, you make nothing from the bank.
The way banking has changed over the years is really the only thing you need to understand to know why the world is the way it is today.
The way banking works, they loan you money so you can buy things and pay for it over time, while at the same time offering you a return on the money you have in said bank. Therefore it is like making a daily transaction with that bank that is mutually beneficial. Well, kids today will never understand how this phenomena worked and worked really well up until a certain point in the early 90's unless you are already financially well off.
Young generation will have it difficult because it has been made much more difficult due solely to greed and corruption at the highest level.
|
|
|
|
|
|
Orange Blooded [4399]
TigerPulse: 100%
Posts: 5536
Joined: 2/20/18
|
Re: Buy a Home
May 30, 2024, 6:10 PM
|
|
When half the country can’t fund a $1,000 emergency, this Bidenomic scheme is BS.....
|
|
|
|
|
|
Replies: 30
| visibility 2889
|
|
|
50
