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75
WookieMan
2018 Jan 18, 5:04pm
WookieMan
2018 Jan 18, 5:04pm
Satoshi_Nakamoto says
I also believe he said he was moving to the Vegas area. Does this Anon not have the ability to read?
anon_0128c saysHoe do you like living in Reno Roberto? Can you describe why move there from Bay Area?
He didn't move there from Bay Area.
I also believe he said he was moving to the Vegas area. Does this Anon not have the ability to read?
76
ja
2018 Jan 19, 4:01pm
ja
2018 Jan 19, 4:01pm
rando says
YEs, but the overall expectation in a non-bubble market is that long term return of a house will exceed the cost of the lending. Same reason that short time rates for a savings accounts is less than a long term rate of a loan. Same reason than stock returns beat housing returns. I'd refinance my house to invest in SP500 for 30 years in a heart beat.
Lol, a fair comparison would point out that leverage works both ways. Houses may not go to zero (except in Detroit) but your equity can easily go to zero, and then keep on digging a hole you may never be able to climb out of. Stocks don't do that. If they go to zero, that's the end of the damage. (Unless you buy on margin, generally a bad idea.)
YEs, but the overall expectation in a non-bubble market is that long term return of a house will exceed the cost of the lending. Same reason that short time rates for a savings accounts is less than a long term rate of a loan. Same reason than stock returns beat housing returns. I'd refinance my house to invest in SP500 for 30 years in a heart beat.
77
HappyGilmore
2018 Jan 19, 4:47pm
anon_e60ba says
It will obviously still be less than PMI
anon_e60ba says
Yep, most likely. But I didn't say that they'd be able to refinance in a few years, but rather that the ratios would look better in a short time. By the time they're ready to refinance, the ratios will probably look much better.
Then what was gained by refinancing and eliminating PMI if you're going to add more costs and a higher rate?
It will obviously still be less than PMI
anon_e60ba says
If you only put down 3.5% originally on the FHA, it's going to take a lot more than a few years to get below 80% LTV.
Yep, most likely. But I didn't say that they'd be able to refinance in a few years, but rather that the ratios would look better in a short time. By the time they're ready to refinance, the ratios will probably look much better.
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This is a great article that uses the Case-Shiller housing price index to compare home affordability today to the bubble ten years ago. This is eye opening!!