What is Digg?96 Comments
- AJanitor, on 03/27/2009, -0/+30Just locked in a rate for my first home a few weeks ago. I have been working part-time since I was 14 and finally saved up enough money to make a purchase. I got a killer deal. Our monthly mortgage + insurance + taxes is only $10 more than our apartment and the rent is going up this year.
- lordmike, on 03/27/2009, -0/+18Congratulations! Nothing like buying your first home! Enjoy! :-)
- radiofrequency, on 03/26/2009, -2/+15The rates aren't the problem. Asking prices are outrageous.
http://www.redfin.com/CA/Atherton/53-Walnut-Ave-94 ... - BillE3, on 03/26/2009, -1/+13The best time to buy a home is when no one has the money to buy a home.
- AJanitor, on 03/27/2009, -0/+10Thanks, after hearing all the loan horror stories I was wondering if we would be able to get a loan. However, my wife and I have worked hard to stay debt free and the loan process couldn't have gone smoother.
For those selling, stay hopeful. You'll find a buyer. - zydeco, on 03/27/2009, -0/+8Congratulations as well! That $10 difference is a great deal, and you've obviously budgeted for home maintenance and repair expenses, right? =)
(I'm a homeowner too, so I can laugh with ya, not at ya. Owning a home can be a bitch at times. Wait until your air conditioner quits or your roof leaks.) - tacotomato, on 03/26/2009, -1/+9Well, at least everyone at AIG can buy a home now.
- zacharytelschow, on 03/26/2009, -0/+7Almost $1000 per sq/ft? Holy freaking crap.
- uwiniwin, on 03/26/2009, -5/+12This is really interesting
- DirtyVicar, on 03/27/2009, -0/+7Of course that's good news if you can even get a home loan, given the much tighter credit requirements. If you are one of the millions who got laid off, enjoy another 10 years of renting.
- Tanbo, on 03/27/2009, -0/+6So what? Homes prices are ridiculously high. You can give me a 0% rate and charge me an absurd amount for the house which I get to pay over 30 years.
Like the car dealers are doing. - AndersenWatcher, on 03/27/2009, -0/+6Locked in 5% 30 year fixed from Wells in LA. Woot.
- inactive, on 03/27/2009, -1/+7"This is really interesting."
This is obviously a legit comment from someone who obviously read the story (twice at least!) - inactive, on 03/27/2009, -2/+7This is really, really interesting.
One level higher than you! - ifruit, on 03/27/2009, -1/+6That's great news, you enjoy that house
- skinny01, on 03/27/2009, -2/+7Head-on, apply directly to the forehead!
- BotchaMcCoola, on 03/27/2009, -0/+5But the Poltiicians are going to try and stop that. Same with cars.
- AJanitor, on 03/27/2009, -2/+7Your reply to his comment is really interesting.
- AndersenWatcher, on 03/27/2009, -0/+5...and the paperwork requirements were ridiculous.
- grantmoore3d, on 03/27/2009, -0/+4Holy double posts Batman!
- AJanitor, on 03/27/2009, -0/+4Well we got lucky and the house has recently be renovated. While I still plan for things to go wrong, the roof is a year old. The electrical work, floors, plumbing, heater and kitchen are all completely new, so hopefully we wont face too many issues.
The seller bought before the market crashed, sunk money into it to flip, then the crash happened. He didn't have a single offer in 100+ days. He was pretty desperate to just break even. - Akairenn, on 03/27/2009, -0/+4So not only can I get a home at a price I can afford even if I get laid off and have to work at Wal-Mart (go go desperation sales!), but I can get low interest to go with it.
<3 crappy economy. - pak314, on 03/27/2009, -0/+4Sold for $850K two years ago according to Zillow.com.
Comparative houses in the neighborhood are $500/sf. - shastafide, on 03/27/2009, -0/+44.5 with a point 30 yr fixed. met life Scranton Pa... Woot Woot!
- DJProxy, on 03/27/2009, -0/+4Come on though...you chose Atherton which is known for being outrageous. Take a look at houses about 15 minutes south on Hwy 280 and you will see things a bit more realistic.
But...the bay area is STILL crazier than most other parts of the country. - mcquitty, on 03/27/2009, -0/+4drmobutu,
I agree with you. Mortgage lenders should be loaning their money so they are responsible for the outcome of profitability or losses. They shouldn't be able to sell the loan to the government without impunity.
Here's a good bank, right?
"Bad or delinquent loans? Zero. Foreclosures? None. Money set aside in 2008 for anticipated loan losses? Nothing. … The bank even squeaked out a profit of $87,000. And its Tier 1 risk-based capital ratio was 31.6 percent, or more than three times higher than many community banks in Massachusetts. “We’re paranoid about credit quality,” [Joseph] Petrucelli said. The 62-year-old chief executive has run the bank since 1992."
Yet, here's how the FDIC judges them:
"The FDIC’s negative review of East Bridgewater Savings Bank’s loan volume is an anomaly in today’s current banking scene as lenders reel from their role in offering too many cruddy mortgage products to borrowers with weak credit.
Still, the FDIC slapped East Bridgewater Savings with a rare “needs to improve” rating after evaluating the bank under the Community Reinvestment Act."`
Makes sense, doesn't it? - ryanthelyon, on 03/27/2009, -0/+4just closed a month ago on a 15 year fixed at 4.5%
I didn't even believe it till I signed the papers and we were done, I kept waiting the bank to say they made a mistake! - calvinit21, on 03/27/2009, -0/+4That's great news, you enjoy that house
- mcquitty, on 03/27/2009, -0/+4Credit isn't hard to get. It's only hard to get right now if you are on the edge of not being able to pay your bills or have crappy credit. I had not problem getting a loan recently. However, the problem with housing was it was too easy to qualify for a home. No money? No problem. No verifiable income? No problem. No work history? No problem.
Many people who couldn't afford the houses they were buying and a boom in housing prices because too many people bought what they couldn't afford? Big problem.
Enjoy the house. - arizona01, on 03/27/2009, -3/+6Your comment is really insightful.
- radiofrequency, on 03/26/2009, -1/+4Welcome to the bay area, CA.
- Y0tsuya, on 03/27/2009, -0/+3Prices still have a long way to fall in the Bay Area before regular folks can afford to buy again, which is what you need for a housing recovery. Artificially low rates and gimmicky loans cannot sustain a healthy housing market.
- lordmike, on 03/27/2009, -0/+3C'mon someone... buy my house!!! I'm selling it at the the price it was 10 years ago... anyone? anyone? Bueller?
- skinny01, on 03/27/2009, -3/+6Head-on, apply directly to the forehead!
- duggdowncatisad, on 03/27/2009, -2/+5Quick! Buy now before mortgage rates and home prices go back up! Why are you still reading this comment? GO BUY A HOUSE RIGHT NOW!
This message brought to you by the National Association of REALTORS™ - mcquitty, on 03/27/2009, -0/+3Y0tsuya,
And how you you let the housing prices correct? You let people file bankruptcy and the price of houses drops. The Democrats have been yelling for years about the price of housing. When the market starts to correct, they are trying to prop up the values. It's simple supply and demand. - Sisyphus9, on 03/27/2009, -0/+3I think it's more about location than anything else - tiny little places in eastern West Virginia (~1.5 hours from Baltimore/DC) are selling for a half-million and up still.
- je12u, on 03/27/2009, -0/+3This low is orchestrated by the Builderberg group to sucker the rest of the middle class population to invest into the falsely 'strong' economy. I believe it will last about a year or so upon which the market will then collapse and the money invested by the people will then be used by the federal reserve to buy up major assets at premium cost in turn making their empire larger and more powerful than ever before. People please do not over extend yourself in debt which cannot be paid, learn from the past.
- chihpih, on 03/27/2009, -0/+2Thats insane. I live in NYC and our prices are very expensive and i can guarantee you can find a larger apartment in Manhattan for less then they are asking. This is a 850 sqf house, I have a 1 bedroom apartment thats 830 sqf and its huge by NY standards. My windows are 9 feet wide so I guess the size of the house is just slightly bigger then my apartment.
- geekee, on 03/27/2009, -0/+2Isn't this exactly what the fed did in 2001 that helped create the housing bubble?
Low interest rates only drive up house prices. Our govt. at work trying to keep the bubble inflated. - calvinit21, on 03/27/2009, -0/+290% of homeowners are still paying their mortgages on time, if they have a chance to save money, they should take it.
- inactive, on 03/27/2009, -0/+2I should hit my budget goal by May then im ready to buy! Prices in my area are great. I hope the rates stay low for a little longer
- Hetman, on 03/27/2009, -0/+2Yea house and property prices are going to go down. It sucks if you bought property before the housing collapse, but the next 5 years are going to be sweet as property and housing prices drop. Renting and owning is going to become a lot cheaper.
- phish3r, on 03/27/2009, -0/+2$3.50?
- Taiyoryu, on 03/27/2009, -0/+2Then try Detroit.
http://www.cnn.com/2009/US/03/17/rtr.detroit.oppor ... - kakapu4u, on 03/27/2009, -0/+2Where and what was your credit score?
- Boofster, on 03/27/2009, -0/+2Locked a 5 fixed 30 in AZ. Yay.
- LordRedSnake, on 03/27/2009, -1/+3Where's your logic? It has nothing to do with the mortgage industry itself. The mortgage industry is in the process of being reformed after granting so many mortgages to those who could not afford them. Yes it's tougher to get a mortgage now since lenders are operating out of an abundance of caution, but it will not get too much easier.
The standard rules of affordability are pretty simple to understand, based on your current debt load and your income. People who aren't qualifying aren't qualifying for a reason. This is not a function of the mortgage industry being greedy or corrupt, it's just a function of many people not having the means to afford a home.
At this stage in the development of our economy there is just going to be a limited number of people who can afford to own a home. Houses are expensive, and they will be until construction costs come way down (unlikely) or people become wealthier on average (more likely, but over a long time). - LordRedSnake, on 03/27/2009, -0/+2Depends on your personal circumstances, and your local market. Prices still have room to drop, but sales are picking up due to such a large inventory and lower prices. I've been looking to buy and have had several deals snatched away from me before I could act.
You need to decide what is affordable to you without expecting the house to appreciate in value in the next 5 years. Houses on average aren't meant to be appreciating assets, that's the result of a mindset created by inflationary monetary policy. If housing supply keeps up with housing demand the prices would remain stable, except in the past 10 years supply had outpaced demand and yet prices still rose. We're seeing a correction now.
Set a price that in your head that's affordable to you (mortgage payments + insurance + taxes should be no more than 1/3 of your monthly income), set your requirements for square footage, yard, bedrooms, etc. and find a house that meets those criteria without getting dollar signs in your head of what it will be worth in the future. - chihpih, on 03/27/2009, -0/+2I have a 7/1 ARM which is set to expire in 10/2010. Currently I have 5.25% and with the rates being so low for the next few years I dont even need to refinance. Refinancing will cost me a few thousand dollars, why do it if I can get market rates which will be from 5.00 - 5.50% :)
I might have to refinance my FL apartment which is at 6.5% -
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