Feds Penalizing Home Buyers with Good Credit and Down Payments

[WapPride]

It's another tax on the wealthy/middle class to subsidize the lower economic section of the income tax bracket so high risk mortgages can be better backstopped by the govt without burdening forecasted budgets.

You could undo the govt backing of jumbo loans north of $1m but I think you'd find not many would lend without at least 8-10% interest rates to offset the risk. That would tank the market, with knock on downward pressure on lumber, concrete, building materials, etc, which impact markets, labor/unemployment etc.

The wealthy aren't borrowing presently, 3 houses near me have sold for north of $1.8m, all were all cash deals. So the wealthy aren't borrowing and the middle/lower brackets won't get approved at current rates. Quite the conundrum.

Ehh they could be borrowing against assets they currently have with their money management firms. Have $2mil in assets with Merril or whoever, get a $1.5mil “loan” against your assets in cash at a competitive rate and use that to purchase your home.

Unless your point was they aren’t borrowing in the traditional sense, in which case ignore me

 

[jakefest]

Ehh they could be borrowing against assets they currently have with their money management firms. Have $2mil in assets with Merril or whoever, get a $1.5mil “loan” against your assets in cash at a competitive rate and use that to purchase your home.

Unless your point was they aren’t borrowing in the traditional sense, in which case ignore me

Yeah, good points. Might be borrowing against a trust maybe at incredibly low rates but borrowing against a wealth account for example would be risky as you'd be up sh*ts creek if you got margin called, Also, interest rates on those types of loans aren't far off the floating rate unless you're a high net worth type account, then you probably aren't borrowing

But yes, my point was that the wealthier demographic aren't tapping traditional loan methods to finance home purchases and my guess is that is likely interest rate driven.

 

[iceheart08]

Yep. Another tax on the group actually funding this country.

Btw, here’s a million dollar house in Mt. Pleasant… 1655 square foot ranch. Absolutely nothing special.

https://www.zillow.com/homedetails/...ssage&utm_medium=referral&utm_source=txtshare

That is wild. That home probably isn't 1m in my neighborhood in Denver. Would likely be in the 800-900 range.

This one, for instance, is much bigger and much nicer and the sale price of this one will be closer to 1.2 than the current list.

1762 S Jasmine St, Denver, CO 80224 | Zillow

1762 S Jasmine St, Denver CO, is a Single Family home that contains 2084 sq ft and was built in 1956.It contains 4 bedrooms and 3 bathrooms.This home last sold for $469,500 in November 2014. The Zestimate for this Single Family is $799,700, which has decreased by $12,023 in the last 30...

www.zillow.com

 

[tgrharley]

Oh...the horror of having to pay your fair share. Don't these government men understand your high income makes you a better and more valuable member of society?

You are a fckg idiot

 

[BlueRidgedf]

Oh...the horror of having to pay your fair share. Don't these government men understand your high income makes you a better and more valuable member of society?

Could you be any more dumber? I guess you don't own anything.