The cost is even higher if you make a hood down payment. in other words, having good credit in this country is now being penalized.
https://nypost.com/2023/04/16/how-the-us-is-subsidizing-high-risk-homebuyers-at-the-cost-of-those-with-good-credit/
13 replies (most recent on top)
The sad part is that the buyers think the only hurdle is getting the house. Buying is easy. It is the ongoing maintenance and repairs that are what can send you on the path of financial destructions. A few basement leaks allowed to continue will end up costing you $20k. Can’t afford a new furnace and go without heat? Be prepared for frozen pipes and water damage. Can’t afford to replace a roof? Be prepared for major structural damage. Think you are going to sit around and enjoy that house? Worry every time it storms. Walk around the house for damage. Gutters clogged? Windows need sealing? Concrete shifting?
That's exactly how the 2009 crisis happened. Making loans to people that OBVIOUSLY won't pay them back and thinking that everyone else that's paying their bills will keep the system afloat. All fun and games until it doesn't.
Owning a house isn't a Right nor is it necessary. Let the free market decide which buyers get loans based entirely on the buyers ability to pay the loan back and we won't have a repeat of 2009. Or, we could just keep doing the same stupid things over and over again while pretending that the resolution isn't obvious.
y'all don't understand how the mortgage market works and the govt agency role
Fannie and Freddie exist to alter the free market and improve homeownership in groups and areas that otherwise would be "underserved"
If you have a mortgage under the jumbo limit - you benefitted by this.
The idea that high quality credit "subsidizes" low quality credit - well duh. that's exactly how credit works regardless of what type of credit and whether a federal agency is involved.
btw these agencies aren't overseen by the office of the president. so all you biden haters go find something else to whine about
Sadly that’s the new American Way.
@jun look at that. You posted two significantly more reputable sites. How hard was that?
Stop being butthurt that people call you out for using questionable sources. A broken clock is correct twice a day.
My first few years in finance were spent in high interest retail lending (and collecting delinquency) and this is where I became familiar with personal accountability. Some folks actually have a life event that temporarily affects their ability to pay a debt. There should be support for those folks and there are opportunities to redeem yourself and regain your good standing.
For others, being delinquent is a way of life. Retail finance depends on it, refinancing deadbeats up to date every 4-8 months is very lucrative. Many of the customers I dealt with had a love/hate relationship with the finance company - they wouldn’t pay and dodged phone calls until the threat of legal action was sent certified mail, then they’d come in, refi the $3000 dollar loan - and restart the rule of 78s (interest charges) - take out $250 bucks in cash and promise to pay on time next month. Three months later, they were 30-60 days past due again - paying almost pure interest for the next 8 months…just in time to refi again. Deadbeats rarely change. We shouldn’t have to pay for their mortgage rate on top of paying taxes on their behalf and high insurance rates…because they don’t have any insurance either.
“The source's owner just paid $787.5 Million for one of his other bullsh-t artist "sources".”
Is Housing Wire biased? Or how about Mortgage News Daily?
https://amp.mortgagenewsdaily.com/article/63c989edfe4e549d560316f2
https://www.housingwire.com/articles/the-new-llpa-and-fico-limits-noble-effort-but-wrong-approach/
The source's owner just paid $787.5 Million for one of his other bullsh-t artist "sources".
For the people poking at the source - maybe your question should be ‘why isn’t my media company reporting on this’?
The legacy media is designed to protect the democrats and uniparty members in the White House.
People complain about the source yet can’t debunk it.
This is why education on critical thinking is needed so badly in this country.
all H-1B and OPT visa workers who take over our jobs also have "risky credit backgrounds" due to just arriving to the country..
We can't implement a policy by nationality, so we will just have to favor H-1B visa workers in perpetuity. Make sure you transfer your knowledge well to them, because American education system failed us.
NYPost is garbage media
I, for one, welcome our social safety nets.