patrick.net

Call it Crazy says

HELOC Resets Could Force Lenders to Rework Loans Once Again

Once again, homeowners are beginning to see their monthly payments go up, this time because their home equity lines of credit have reached the 10-year mark and are resetting. Instead of requiring just interest payments, the second lien becomes fully amortizing and the borrower has to pay both interest and principal each month for the first time.

It is going to be painful for many borrowers who could see their monthly mortgage payments go up by $400 or more, according to Horvath, an executive vice president for Springboard Nonprofit Consumer Credit Management Inc. in Riverside, Calif.

“Just when you think you are climbing out of it, and then you got these adjustments,” he says.

He is not taking into account that many homeowners could just get another HELOC. With rising home values it should be easier.

APOCALYPSEFUCKisShostikovitch says

Houses are too cheap. No one can have any respect for a shack that can't command a few million dollars in valuation.

For a modest fee I can value any property of your choosing at whatever you feel your property is worth.

Of course my fee is a small percentage of that valuation... Gotta provide the proper inventive to get the numbers right after all.

There's definitely tangible and specific effect from the fed - the federal funds rate has been stuck at 0.25% for over 5 years now. That rate directly affects the interest rates that banks pay on savings accounts and also CDs. Since savings/CDS are considered risk free investments, it affects the valuation of other asset classes and makes riskier investments more attractive than they would have been otherwise. For example, T dividend yield is currently 5.27% which appears to be attractive when savings accts are paying 0.1%. However, if savings accts were to pay 3.75%, that 5.27% yield from T don't look as good anymore so prices for T shares would have to fall for dividend yield to rise and maintain the spread vs risk free vehicle.

Slightly off the subject...

Do you remember those ads on cable TV that were incessant for Ditech?
"Release the equity in your home. Take a vacation, pay off credit cards, buy a boat!" etc?

I have not seen any of those ads in years. Why not I sometimes wonder.....?

Actually, I don't wonder but I like the phrase.

One reason people aren't going to be selling/moving is that they're among the 50% Alt-A/Sub prime people (losers) who can't qualify for another mortgage probably, and they're probably also underwater, or treading water with the water up to their nostrils. I don't really know but it's a thought.

clambo says

One reason people aren't going to be selling/moving is that they're among the 50% Alt-A/Sub prime people (losers) who can't qualify for another mortgage probably, and they're probably also underwater, or treading water with the water up to their nostrils.

There are two additional problems:
1. Housing is expensive again. So why sell? To move up? Leads us to...
2. Typically move-up buyers have equity. Even though one's house is no longer underwater, there is likely not enough equity to make a significant downpayment.

So if the fed is only there to help the poor, by making operating costs cheaper, by lowering interest rates from 1.1% down to 1.0%, the govt only exists to screw the poor by making operating costs higher via taxes.

Welcome to bizarro world

clambo said: Do you remember those ads on cable TV that were incessant for Ditech?
"Release the equity in your home. Take a vacation, pay off credit cards, buy a boat!" etc?
Have you seen the ads Wells Fargo has been running lately (I think they debuted on YouTube in the last week or two). From what I can tell, they are encouraging people to take out loans to "pursue their dreams" which includes:
1. A music career
2. A motorcycle purchase
3. A kitchen remodel
Here we go again.

Every time one of these Conservatarians says something like this, or, like much of Ron Paul's old team or Zimmermann's fan club president, turns out to be a white supremacist, it's pure coincidence.

The Democrats are the real racists.

I cribbed this from a posting by anon2 on Socketsite. Looks like IPO unprofitability is approaching levels not seen since the heady days of the dot com bubble (1999-2000). Check it out at http://bear.warrington.ufl.edu/ritter/IPOs2013Statistics.pdf (see page 12). Profitable IPOs in 2014 so far is 13% of all offerings.

His comments were probably taken out of context, he was probably referring to those slavs in eastern europe, aka russians and ukranians, the ultimate wiggas.

I'm totally against airstrikes - yes, drones too - on Bundy and his minions. But that would be an appropriate and proportional response to insurrection.

But this needs to be dealt with the same way George Washington dealt with the Whiskey Rebellion, which is military force.

By the way: How do all those "patriots" sit out there and pose with their weapons all day? Don't those people have jobs?

I had to run down to the DMV.

I would also add that I am opposed to torturing Bundy, as is often done to traitors. And I do not countenance the use of artillery or heavy armor against his compound.

The use of an A-10 Warthog, firing delightful bursts ("BRAAAAAP!") of its 30mm Gatling gun at the Ranch buildings, would also not be appropriate, I think. And execution by hanging for treason would be premature at this point.

Hmmm, I wonder who forgot to take their medicine today.

And what has this got to do with the constant crap you post about Sandy Hook, Boston, 9/11....?

Oh, and whilst you are at it, feel free to post up the links to where I have supported zionism. I'll be waiting.

A few minutes researching the racism of democratic and republican politicians will pull scores of horrific examples

try Democrat Lyndon Johnson's rationale for the Civil Rights act "“I’ll have those XXX voting Democratic for the next 200 years.”

or some of Republican Abe Lincoln's views on African Americans "repatriation to Africa!"

Google comments by Democrat Woodrow Wilson (re-segregated Federal workers) and Republican Richard Nixon on Italian Americans (they smell different) or Democratic Speaker of the House and Former Klansman! Robert Byrd

Politicians are nasty people and its misguided to think either party does not have a slew of racists among their ranks.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I'm still recovering from 4/20, er, Easter, I meant Easter. I ate a lot of candy that day.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

In order to save some money, I picked "free shipping" for my Sexflesh Hermaphrodite Admixture Stroker from Amazon.com.

It's what I want to use to kill Kim Jong-un, but free shipping takes ten business days.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I'm an American. I couldn't find North Korea on a map of North Korea.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I've been too busy arguing with bigots on Patrick.net.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

Like how am I suppose to tell him apart from all the other Koreans?

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I don't want to piss off Dennis Rodman.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

He reminds me of the Michelin Man.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I enjoyed his work in Ghostbusters.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I got the wrong guy.

North Korea / South Korea. Who knew there were two of them?

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

He reminds me too much of that boy from Up.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

Have you ever seen Kim Jong-un and Superman together? Can't risk it.

This is an interesting story. Bundy's father bought the 160 acre ranch in 1948, and this shows how people who got a leg up in the early 20th century have more wealth working for them today.

How many black people have 160 acres (the maximum allotment under the Homestead Act) working for them like Bundy.

This is in addition to the issue of just using Federal ranch land -- the commons -- for free. Again, if urban people had Federal-owned asset wealth available for their productive use they wouldn't need to be on welfare either.

But that'd be fucking communism and we can't have that.

smaulgld says

and its misguided to think either party does not have a slew of racists among their ranks.

The Democrats largely purged their racists, so the situation is fucking far from symmetrical.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I'm sorry, but he's just the perfect height for blowing me while standing up.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I did. They just keep cloning the fat bastard.

APOCALYPSEFUCKisShostikovitch says

PatNet Survey: Why Haven't You Killed Kim Jung-un Today?

I tried. I gave him the keys to a car, but Dennis Rodman drove for him.

bgamall4 says

Bigsby says

And what has this got to do with the constant crap you post about Sandy Hook, Boston, 9/11....?

Oh, and whilst you are at it, feel free to post up the links to where I have supported zionism. I'll be waiting.

You are a globalist. You believe in the British Empire. That was influenced by multiracial Zionism many years ago. And it still is. Tell my you are happy that the court ruled that Zionism of today is not Abrahamic Judaism and I will throw flower petals at your feet.

I do? That's news to me. Post up the links where I've expressed my support for the British empire (seriously?!?). I'm still waiting for the zionism links.

bgamall4 says

I am not going through all your posts. Just say you are happy with the court's ruling and I will believe you.

So you just enjoy throwing out baseless accusations? Paint me unsurprised.

And I've never thought being anti-zionist was the same as being anti-semitic. Your idiotic conspiracies, and the tone of much of your posts, though, are a different matter. Remember, for example, that article you happily linked to with those blatantly anti-semitic images in it...

APOCALYPSEFUCKisShostikovitch says

Still, having to wait a day or two in order to take delivery of a Sexflesh Hermaphrodite Admixture Stroker in order to beat him to death with it

If you were pistol-whipping a banker, would you let him slump to the floor just to shoot Kim Jong-Un?

I've already said that I don't think being anti-zionist is the same as being anti-semitic. Why would I?

And it was an employment tribunal.

I was in Safeway this evening and heard over the PA system "come to US Bank and get a home equity loan today! the rates are great, blah etc."

There is a kiosk of US Bank right in there next to Redbox.

I was wondering which UCSC student would go ask for a home equity line of credit anyway.

Of course.

The money from the housing bubble was spent, blown, gone. What you see today is the real economy.

As an extreme experiment, I remember our summers on Martha's Vineyard since the early 60's. The locals saw themselves priced out of the market where they grew up and there were all kinds of ideas floated to help them.

One thing was for sure; I knew a LOT of poor people who ate tuna on wonderbread 5 times per week, but their HOUSE was worth a lot of money for sure.

None of these poor people could figure out a way to rip off a shingle and trade it for some groceries every day.

The wealth effect: it is what they call it.

It used to be that all homeowners and even new entrants profited from the rising tide.

Now the tide is stagnating and new entrants have to pay for everyone that came before them.

The wealth effect is a thing of the past. Everyone who comes now will suffer from (and complain about) high prices, except retirees scaling down.

bgamall4 says

you can live multigenerationally and not compete with them at all.

The 1% chisel their wealth out of us via many means.

Real estate, health care, and energy being the biggest and most obvious economic rent centers.

Corporate profits in general are also a rent tap on us.

As is food, specifically.

http://community.corpwatch.org/adm/pages/food_industry.php

but yeah, I'd love to buy some productive acreage and live off the land.

http://www.fresnobee.com/2014/04/18/3884946/valley-farmland-values-grow-to.html

well, I guess there's always Japan . . .

The Federal Reserve is only useful if the economy is too "hot" and they raise interest rates to cool it down.

The very fast dramatic lowering of interest rates by Greenspan BEFORE the housing bubble peaked/popped was not wise. Absurdly low interest rates will tend to punish savers, and will encourage more risk taking that seeks a better return on capital.

Greenspan to his credit admits his stupidity and was surprised that the banks and others didn't protect themselves but rather amplified their risk and downside and were bankrupted in 2008. We TAXPAYERS saved them.

It would be good if the focus of the FED were clear that its purpose is only to combat inflation, i.e. the Fed can make interest rates higher and rules stricter, not lower interest rates to zero, not buy assets to prop up their price, etc.

Having done damage before the debt asset bubble popped, the Federal reserve and Treasury saved the banks, while putting us on the hook.

The interest rates being low didn't produce natural gas in North Dakota and Texas, it also doesn't increase innovation in Silicon Valley.