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No-money-down mortgages are back

By ChrisKolmar   Follow   Fri, 1 Feb 2013, 1:03pm   332 views   3 comments
In Menlo Park CA 94025   Watch (0)   Share   Quote   Permalink   Like   Dislike  

http://www.marketwatch.com/story/no-money-down-home-loans-are-back-2013-02-01?source=Patrick.net

Its 100% financingthe same strategy that pushed many homeowners into foreclosure during the housing bust. Banks say these loans are safer: Theyre almost exclusively being offered to clients with sizable assets, and they often require two forms of collateralthe house and a portion of the clients investment portfolio in lieu of a traditional cash down payment.

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1. jvolstad Follow Befriend (4) 992 threads 1,125 comments San Antonio, TX jvolstad's website

   1   1:09pm Fri 1 Feb 2013   Share   Quote   Permalink   Like   Dislike   20% down, 20% down, 20% down. If you want a house, you need 20% down.

2. SFace Follow Befriend (2) 61 threads 1,303 comments Premium

   2   1:15pm Fri 1 Feb 2013   Share   Quote   Permalink   Like   Dislike   Protected   Borrowing cost is less than inflation (They are borrowing at around 2% - 4% depending on the collateral. All use prime +/-). If the bank wants business and establish relationship with wealthy clients, they'll need to go there or not get any business. A major stock collaral is as good as 20% down. Win-Win. Only dinosaurs can't see it from both sides.

3. epitaph Follow Befriend (3) 5 threads 172 comments

   3   1:46pm Fri 1 Feb 2013   Share   Quote   Permalink   Like   Dislike   Anything less than 20% should be illegal. I agree that borrowing cost is less than inflation, but stock is volatile, cash is not. Show me the money.