is the resurgence of 0-5% down payment mortgages going to cause another crash in the housing market /biz/? will home values hold or keep going up? is everyone fucked?
I work in the mortgage biz, and it keeps me up at night seeing people who live paycheck to paycheck signing up for mortgages on a daily basis.
Yes
People are idiots. They will get houses far too expensive for them, or take on variable rate mortgages just because it might be 'the cheaper option in the short-term'. People have no sense or recognition for the future, they live in the present and don't care. We live in an age where people must have everything at once rather than work for it and it just cannot work like that. We are knocking on the door on the worst financial crisis since the great depression and only the smart people who have physical assets are safe
>>1102631
physical assets like houses, chucklefuck?
>>1102637
Nah he means gold and ethereum
>>1102631
I don't see how values can hold when the up and coming millennials will be completely unwilling to pay a premium for houses, let alone wanting to buy houses at all because they can't afford even shitty houses.
>>1102637
gold you fucking mongoloid
houses? are you dumb, you don't own a house until the mortgage is paid off. Which 95% of the 0-5% down payment cucks will never achieve
>bought a house in 2012
>house is worth double in 2016
>feelsgoodman.jpg
>>1102724
How'd you afford to buy a house? Just work your ass off and save?
>>1102650
Rich Chinese and Indians will keep buying houses. Think about how many of them there are -- just the top 0.1% of 2 billion people is 2 million people.
>>1102727
I'm a poor borderline NEET, but the way "bought" the house was I used a FHA loan which allowed me to put 3% down on the house. The shitty part of getting an FHA loan is that an extra $100 gets added on to the monthly mortgage payment
>>1102730
Interesting, thanks for the reply man. I've been wanting to buy some property.
>>1102730
good job, very VERY good job!
you are an outstanding citizen of the state
>>1102608
>resurgence of 0-5% down payment mortgages
Citation needed. Bank lending standards are stricter today than they have been for 40 years.
Your entire premise is bullshit, and you lie about working in the mortgage industry. "muh happening" thread exposed.
>>1102731
Here's how I assume the process might go for you
>you discuss your situation with the realtor
>he will send you to someone to see how much money you get pre approved for
>the realtor shows you what kind of houses you can buy based on the pre approved amount
>you pick a few houses you like then you and the realtor go and look at them
>you find one you like then you make an offer
>once the offer is accepted, you have to pay an inspector to go through the house to make sure everything works
>once both parties are satisfied the loan goes into escrow
>30-45 days later you get the keys
>>1102735
The government didn't loan me money or anything like that. An FHA loan means the government guarantees the loan will be paid even if I can't or don't pay for it. So if paying my bills makes me a "good citizen" then yes in a good citizen
>>1102728
I don't have source, but there was a report that came out in 2015 saying that there are roughly 13 million ppl worldwide with either 20mil in cash or 30mil in liquid assets and that 4 million of them live in the united states.
>>1102724
Sell it nigger, make your gains real
>>1102637
He probably meant people with physical assets that aren't using them as collateral in a secured loan.
>>1102752
By backing your loan you paid less interest than you would have otherwise.
Less interest means less money going to the bank which means less money in government coffers.
So technically they did pay for it.
They also pay for it by putting up the money when your compatriots do default.
But yeah, personally you should say fuck it I got mine, everyone else is.
>>1103594
No, by the government providing insurance backing the loan you're able to get one in the first place where you may not have been able to otherwise. Homes pre-FHA often required 50% down with 3-4 year mortgages for example. Even today; lenders have their own qualifications above and beyond that which FHA requires and different interest rates to go with that.
On top of that you know you have to put a down payment on that FHA insurance policy up front in addition to monthly payments, right?
>So technically they did pay for it.
Mortgage interest is tax deductible anyway. Your whole post is full retard from top to bottom. Google how mortgages work at least before you embarrass yourself anymore.
>>1102724
>highly volatile illiquid asset
>Im rich now
Lmao are you a boomer
>>1102608
I dunno. Probably.
I live in an area where values are low due to criminally low demand, so odds are the price of a house will not go up much more than my effective spending power will.
On a more relevant note: half of a house's listed price is a good down payment, right?
or you can just not move out, ever.
>>1103625
Nothing you said changes the fact that government backing mortgages shifts the risk reward profile which lets banks charge less interest to the individual and shifts it to the government in one form or another.
If it doesn't cost the government anything they could just insure every aspect of peoples lives.
>>1102608
I would be more concerned with the same old games being played at the IBs. Sure; consumers didn't learn anything(as usual). But neither did they. Why not. They'll just be rescued again anyway. And the cycle continues.
https://www.youtube.com/watch?v=7Csx9Qe53uw
>>1103870
Of course it shifts the risk reward profile otherwise no one would be able to buy a home unless you were rich.
I don't know why you keep focusing on interest. That's 1% of the equation. I explained that at length for you but clearly you're not interested in learning how mortgages work.
Anyone reading your comments that has or has had a mortgage knows you have no idea what you're talking about.
>If it doesn't cost the government anything they could just insure every aspect of peoples lives.
They already do. Homes, banks, healthcare, education.
Even still - the government is on the hook for the principal mortgage balance anyway, not the interest. So your comments still make absolutely no sense.
I bothered responding to educate you but if you're just going to plant your flag in ignorance, knock yourself out. I won't waste my time.
