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  1. Wow do you even live or think outside your own head? go back and re-read the whole thread.....slowly this time you just contradicted youself numerous times Because I first responded like his argument might be valid and ignored the strawman he was making? Sorry, I was hoping he'd back up his claim of 200K lost equity if he had to save for a 20% down-payment first.
  2. Option-ARM loans are what did them in.
  3. I think you missed George's point that he bought his house LOOOOOONG before the boom and has paid off a lot of principal and now sit's on a lot of equity. You do realize that People did buy houses before the housing boom...right? Yes I know people bought houses before the housing boom. In fact I never said he did buy during the boom, just mentioned the way he was saying saving for a 20% down home loan would cost him 200K in equity. If the house was going to appreciate that much in the time it took to save for a reasonable downpayment than that growth wasn't real and just a bubble. I made the point because his defence on 0% down was the same as everyone else's "In the time it takes me to save a 20% down payment, this house will have gone up $300,000!!" - while its because of those loans home values grew at such unsustainable rates. I understood George's point perfectly, he was attacking a strawman. He was framing it as if a 20% down home loan is the same thing as only being able to buy the house all up front in cash. I think its you who missed his point. And yet another strawman to attack. Where is selling his house even mentioned??? I see no mention of why going back to 20% down loans is such a terrible idea...
  4. Exactly. How many less houses, cars, appliances, televisions, etc. would be sold if consumers only purchased what they could pay for in cash, or with a "safe" loan. All houses with a minimum 20% down and full income documentation? All autos with a minimum 40% down and full income documentation? Personally, I don't agree with the "live beyond your means" or "I must have it now" mentality, but this country's economy has been powered by an advertising-based engine that has been in overdrive for the past 30-40 years. Hundreds of thousands of jobs are based on products and services related to purchasing on credit that would otherwise not exist. You can't just flip a switch and send everyone instantly back to the 1960's level of consumption without seismic repercussions ... So I should still be RENTING here instead of owning a house with $100,000--->$150,000 EQUITY (maybe more like $200,000) Because I could not pay cash??????????? You're saying your house went up $100,00 (maybe $200K???) in the time it would take to save a 20% downpayment? It sounds like you're talking about buying a house during the housing bubble to have such great appreciation in little time. If thats the case, then sorry but you'd be lucky to have 25,000-->50,000 in equity currently. The way you doubled the equity you think your house has in one post, sounds like you think the bubble is still going strong lol. How can you seriously rage against a 20% down home loan??? You do realize that people not having to put any money down (or worse) to buy a home is a big reason why we're in the mess we're in? YOU ARE JUST A LITTLE CONFUSED Exactly what am I confused about? EQUITY I see your IGNORE is broken Equity = Assets - Liabilities. I think you're in denial about home equity being able to decrease aswell as increase... Since I'm confused on how this works please answer me this: I bought a home for 500K (with 0% down of course), two years later it is valued at 800K, ofcourse I made no dent in the principal of the 500K mortgage so I still owe 500K on a house worth 800K. 300K~ equity right? Now a year later the home's value plunges 50% and is only worth 400K and I still owe 500K (love this 0% down loan) on it... Do I still have 300K worth of equity or even $100?
  5. Exactly. How many less houses, cars, appliances, televisions, etc. would be sold if consumers only purchased what they could pay for in cash, or with a "safe" loan. All houses with a minimum 20% down and full income documentation? All autos with a minimum 40% down and full income documentation? Personally, I don't agree with the "live beyond your means" or "I must have it now" mentality, but this country's economy has been powered by an advertising-based engine that has been in overdrive for the past 30-40 years. Hundreds of thousands of jobs are based on products and services related to purchasing on credit that would otherwise not exist. You can't just flip a switch and send everyone instantly back to the 1960's level of consumption without seismic repercussions ... So I should still be RENTING here instead of owning a house with $100,000--->$150,000 EQUITY (maybe more like $200,000) Because I could not pay cash??????????? You're saying your house went up $100,00 (maybe $200K???) in the time it would take to save a 20% downpayment? It sounds like you're talking about buying a house during the housing bubble to have such great appreciation in little time. If thats the case, then sorry but you'd be lucky to have 25,000-->50,000 in equity currently. The way you doubled the equity you think your house has in one post, sounds like you think the bubble is still going strong lol. How can you seriously rage against a 20% down home loan??? You do realize that people not having to put any money down (or worse) to buy a home is a big reason why we're in the mess we're in? YOU ARE JUST A LITTLE CONFUSED Exactly what am I confused about?
  6. Exactly. How many less houses, cars, appliances, televisions, etc. would be sold if consumers only purchased what they could pay for in cash, or with a "safe" loan. All houses with a minimum 20% down and full income documentation? All autos with a minimum 40% down and full income documentation? Personally, I don't agree with the "live beyond your means" or "I must have it now" mentality, but this country's economy has been powered by an advertising-based engine that has been in overdrive for the past 30-40 years. Hundreds of thousands of jobs are based on products and services related to purchasing on credit that would otherwise not exist. You can't just flip a switch and send everyone instantly back to the 1960's level of consumption without seismic repercussions ... So I should still be RENTING here instead of owning a house with $100,000--->$150,000 EQUITY (maybe more like $200,000) Because I could not pay cash??????????? You're saying your house went up $100,00 (maybe $200K???) in the time it would take to save a 20% downpayment? It sounds like you're talking about buying a house during the housing bubble to have such great appreciation in little time. If thats the case, then sorry but you'd be lucky to have 25,000-->50,000 in equity currently. The way you doubled the equity you think your house has in one post, sounds like you think the bubble is still going strong lol. How can you seriously rage against a 20% down home loan??? You do realize that people not having to put any money down (or worse) to buy a home is a big reason why we're in the mess we're in?
  7. Probably just hasn't updated or whatever the case may be. Inq's I don't think really affects a score all that much. Especially if this is your first or second I pulled my report with CS and the INQ is there. I just thought it was werid it didn't change my score at all
  8. Two days ago I bought my score off myfico.com and it was 740. I went ahead and applied for penfed after that giving my EQ report one total INQ. This score from today is also 740... did that INQ not affect my score or did this just use my two day old myfico.com score?
  9. "Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate." Ironically enough the reason these are losing 'value' is because the option ARM loans dried up. The value of these homes was artifcially high and got that way because anyone could get a 600K loan, the prices are just coming back to reality now. So if I'm understanding Dave correctly; he feels the prices of homes during the bubble, that can only be supported by use of option ARMs are the correct price. Meanwhile he advocates using only a 15 year loan to buy a home with??? Who exactly is he expecting to be able to afford these homes??? For someone who constantly goes on about living within your means, he doesn't seem beleive that home prices should reflect that. "1. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage." This shows that Dave truly has no clue as to what is going on with these delinquent mortgages. Has he not heard of option ARMs??? Someone who couldn't even afford to pay the interest on the loan every month isn't going to be helped by having 6% interest fixed. People got these exotic loans because otherwise they wouldn't be able to 'afford' the house otherwise. Unless he adds in slashing the principal of the loan by atleast 50% they still won't be able to afford it. It's like Dave has never heard of anyone using credit to live far beyond their means. note: yes I know the option ARM abuse was the worst in California and not every place is as bad off. But the CA mortgages are the ones killing the banks, so you have to fix them to fix the problem.
  10. ...and forced about 40% of homeowners to be stuck in their houses for the next 15 years...think about what that would do to real estate prices! Great for buyers, horrible for those of us that own a home without much equity. Esp. if the value will drop another 45% due to this requirement. 40% is an overcorrection. 10% is reasonable even - there were few problems even with 10% down, honestly. 0% and 3% FHA w/seller assistance alone being eliminated is quite reasonable. I'll bet there are stats already out there somewhere that could back this up or refute it... but I'll bet the majority of those foreclosed on never at any time had even a 10% stake in their homes. You're treading on dangerous ground, LOL! But its true. In the most heated markets like California, people didn't even have 1% stake in the home, it was more like -2% due to minimum payments. Its no wonder that once those ridiculous loans dried up housing prices have fallen some 40% in just a year in Socal and will continue to plunge in price for another few years, while the majority of ARMs continue to reset. 10-20% down isn't that horrible when the prices of homes are what the area's incomes will support. It helps ensure that only people who can actually afford a house are able to buy one - which keeps prices sane.
  11. Are you serious? When IndyMac failed the FDIC took it over and it was a fairly seamless transition. People could get their money out (under 100K) with no problem; ATM cards and checks still worked the Monday FDIC took over. None of this several weeks hold time you're talking about. If you want to try and scare people about FDIC, at least make it have a hint of truth to it... Chase will take over WAMU given the chance, since it will give them a western footprint which they currently do not have.
  12. No. Any show I want to watch I can just download off the internet.
  13. Costco Amex gives 2% back on travel related charges and 3% on restaurants
  14. Going overseas reminded me of just how much I hate getting change. That alone gives me reason to use plastic for everything I can.
  15. Ramsey's debt-fueled success soon came to an end as the Tax Reform Act of 1986 began to negatively impact the real estate business. One of Ramsey's largest investors was sold to a larger bank, who began to take a harder look at Ramsey's borrowing habits. The bank demanded he pay $1.2 million worth of short-term notes within 90 days, forcing him to file bankruptcy. [6] Ramsey vowed to never again borrow money and, after walking away from his debts, he eventually recovered his financial footing. There must of been a beans and rice shortage around this time too...

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