Large down payments provide stability to the housing market


By golfplan18   Follow   Tue, 30 Apr 2013, 8:17am   274 views   4 comments
In Irvine CA 92620   Watch (0)   Share   Quote   Permalink   Like (1)   Dislike  

http://ochousingnews.com/news/large-down-payments-provide-stability-to-the-housing-market?source=Patrick.net

Down payments are the bedrock of the housing market. Large down payments preserve home ownership, reduce volatility in the market, and reduce the risk to our financial system. The only people who oppose them are realtors and originate-to-sell lenders who see down payments as an impediment to profits and left-wing housing advocates who see down payments as a barrier to putting unqualified borrowers into houses. Down payments preserve home ownership because people who’ve put down large down payments rarely default. In purely economics terms, people shouldn’t consider sunk costs like down payments in their decision making. However, homeowners do. People...

Viewing Comments 1-4 of 4     Last »     See most liked comments

  1. Goran_K


    Follow
    Befriend (4)
    31 threads
    2,192 comments
    Laguna Beach, CA

    1   8:27am Tue 30 Apr 2013   Share   Quote   Permalink   Like   Dislike  

    I do think higher down payments, lower interest rates, and better under writing have provided a stronger housing market.

    Now if they could only do it with normal inventory levels, we might have something.

  2. APOCALYPSEFUCKisShostikovitch


    Follow
    Befriend (27)
    408 threads
    11,789 comments

    2   8:30am Tue 30 Apr 2013   Share   Quote   Permalink   Like (3)   Dislike (1)  

    Downpayments are for ASSHOLES! The bank is supposed to silent second the downpayment for the housing buccaneer. Everyone knows that!

  3. marco


    Follow
    Befriend
    344 comments
    Black Mountain, NC

    3   8:40am Tue 30 Apr 2013   Share   Quote   Permalink   Like (1)   Dislike  

    Downpayments are for serfs ..(you know.... people who aren't "Friends Of Ben").

    "Friends Of Ben" get free money, and they pay cash...... for all their homes.

  4. BobMSN


    Follow
    Befriend
    6 threads
    107 comments

    4   4:05pm Wed 1 May 2013   Share   Quote   Permalink   Like   Dislike  

    The downpayment is the last defence. But if tax payer's money is not involved, who cares about the downpayment? The bank can give the money away with 0 downpayment if they want to take the risk.

golfplan18 is moderator of this thread.

Email

Username

Watch comments by email
Home   Tips and Tricks   Questions or suggestions? Mail p@patrick.net   Thank you for your kind donations

Page took 48 milliseconds to create.