Trump day 1 suspends FHA mortgage insurance rate cut for Homebuyers

a reply to: unfor54k3n

If they are that tight on funds, then it seems pretty irresponsible of them to be taking out a mortgage on a $600,000 home.

This is the type of nonsense that led to the fanny may and Freddie Mac real estate bubble.

a reply to: unfor54k3n

One should never purchase a home until they have saved enough to not have to pay for mortgage insurance.

It's a basic principle. Why would you want to pay the mortgage company premiums insuring THEM against YOUR default?

Think about it.

a reply to: watchitburn

Yep.

The secret to getting ahead is to compromise on your first home - buy for price, not for fancy living. Pay it off as fast as you can, then let the equity you have leverage you into something better the next time around.

The problem with everyone today is that many people have forgotten that money does not grow on trees and that patience and persistence is what gets people ahead. These types want everything NOW and don't want to work hard for it.

originally posted by: watchitburn
a reply to: unfor54k3n

If they are that tight on funds, then it seems pretty irresponsible of them to be taking out a mortgage on a $600,000 home.

This is the type of nonsense that led to the fanny may and Freddie Mac real estate bubble.

I think the point though is it gives people a cheaper alternative and options versus only using banks and other loans. Even if you arnt that cash strapped but have the option to save an extra $1000 a year by going with an FHA over a traditional loan why wouldnt you? (Remember these same banks are the predators who loaned before during the bubble not just home buyer assistance programs.)

More options the better I would assume. Again this doesnt impact some people as much as other but for some this can be a pretty big financial hit. Keep in mind rhis program has been around since the great depression as a means to get Americans into their first homes its nothing new.

a reply to: unfor54k3n

I think you missed the part about crashing the economy.

a reply to: unfor54k3n

I don't get why anyone would think that it's financially responsible to pay anyone (govt or private mortgage co) mortgage insurance in the first place!

Maybe this is why my monthly MIP charges haven't gone away yet.

Supposedly, the loan company is to discontinue MIP charges once your loan balance is less than 80% of your home value (or original mortgage, at least). Ours is at 75% and still no change in MIP....

Regardless of the rate, if they're only supposed to charge you for the loan proceeds in excess of a standard 80% home loan, there could be a great deal of additional revenue that isn't exactly "legal".

ganjoa

a reply to: markosity1973

I do agree but what constitutes as "working hard"?

I always thought the same as you but if I have to work 6 part time jobs minimum wage on a strict boring diet and do nothing but eat, sleep, and work... then I say fug all of that. Sign me up for welfare! Cause all that other sh-t is abuse.

Working hard? What is that. Feels more like people want to abuse you and you just have to bend over and take it and if you take the abuse without complaint then maybe you'll get acknowledgement. Well I'm not signing up for that. No thank you!

a reply to: unfor54k3n

The people don't need homes!

originally posted by: bknapple32


For some its closer to 1000 a year. which is make or break for tons of single parent families. But lets not kid ourselves. If dictator Obama did anything that would cost the avg american 1000 extra a year, we'd see deport Obama threads in no time..

A single parent family that can afford a $500,000 home? Thats a huge demographic.

a reply to: ganjoa

Get your house appraised....sometimes if it's appreciated your percent will fall in line for the MIP to drop. We had that happen

a reply to: geezlouise

That was not meant as a jab at you personally.

I too have earned less than average wage my entire adult life. I too struggled to save because the wage I earned, despite working 45 - 50 hours per week, was enough to cover rent and bills but never quite enough to save what I needed to get a house deposit. And I found that no matter how fast I saved, the price of real estate kept increasing and moving the goalposts further and further away.

By working hard I meant there are some out there (I meet them all the time BTW) who have this dreadful sense of entitlement. They just think that the world 'owes' them a new car and a flash house in a well to do suburb. They have no concept of budgeting and are the ultimate conspicuous consumers who want to keep up with the Jones' without the financial means to do so. Those people are the ones who do not work hard - as in they are the special snowflake type who want someone else to help them out.

Read my post on the first page of this - it tells my story of what I had to do to get my own home. It took a huge lifestyle change and a move to the country with my current employer to make home ownership a reality for me.

Most importantly NOBODY helped us out. My parents disowned me years ago (long story) and I moved to a different country to make peace with them. My partner is from a poor family who's parent's do not have the financial means to help us out either. When my partner and I met in 2006, I was literally down to my last $20, living in a hostel out of a suitcase and he had just broken up with his partner, was living back at home and had nothing other than clothes to his name.

So don't give up, it took me 43 years to buy a home but I got there. If you keep persisting you can make it too

a reply to: markosity1973

Thank you for the kind response.

I didn't take it personally but I am going through a thing, lol. I understand the kind of people you're talking about. They're the ones who cry about how it's unfair if someone else does a better job than them, or how they have to read textbooks in school... and Ive found that the people who act the most entitled are more likely to be thieves than anyone else. Like actual thieves. Sadly.

Sometimes though, I do feel like... idk like there is no "working hard." Not for me. It'll never be enough. But we'll see.

This is the kind of thing that must be done to reduce the size of government

This is the kind of thing that will hurt the middle class. Added on to the dozens of other economic attacks about to be unleashed by Congress and the middle class is going to be hurting.

a reply to: bknapple32

IF 1000k dollars would break you in a year maybe owning a house isnt what you should be doing with your money. These loans are very risky making it a little harder to get the loans and being more invested might help stop failing rates.