Homes are investments for the home owners they should not be seen as investments for investors unless they are willing to go the long haul on their investments. You can not sell off these sort of investments. They must be held through term of loan. Packaging home loans will never work period it isn't profitable for those whom purchase them at inflated values with unknown factors of which can and will degrade their values over time.
This would be an example based on affordable to those whom are interested in buy into these mortgages backed by the government also using a normal rate of forclosure. It could be profitable and would work. But instead we had homes elling for $ 175,000. being purchased by people earning $ 42,0000 and it just doesn't work even if you don't use an arm or subprime loan.
I agree yet wish to ad, the whole idea of affordable housing is in my opinion key to this issue. Now with this in mind what is affordable housing. It is what it says it is affordable. That said how do we define affordable by whoms standards? It must be by the real standards that apply. If the average worker earns $32,000. then affordable housing must be costed out using this amount as a frame work or starting point. So now we have a home selling for $ 65,000. at 30 years for
@CAJUNNSC That is only true because homewoners vcannot effectively hedge the risk of a ystemic downturn in housing prices.
MikeJacobsJr 2 months ago
Homes are investments for the home owners they should not be seen as investments for investors unless they are willing to go the long haul on their investments. You can not sell off these sort of investments. They must be held through term of loan. Packaging home loans will never work period it isn't profitable for those whom purchase them at inflated values with unknown factors of which can and will degrade their values over time.
CAJUNNSC 3 years ago
This would be an example based on affordable to those whom are interested in buy into these mortgages backed by the government also using a normal rate of forclosure. It could be profitable and would work. But instead we had homes elling for $ 175,000. being purchased by people earning $ 42,0000 and it just doesn't work even if you don't use an arm or subprime loan.
CAJUNNSC 3 years ago
I agree yet wish to ad, the whole idea of affordable housing is in my opinion key to this issue. Now with this in mind what is affordable housing. It is what it says it is affordable. That said how do we define affordable by whoms standards? It must be by the real standards that apply. If the average worker earns $32,000. then affordable housing must be costed out using this amount as a frame work or starting point. So now we have a home selling for $ 65,000. at 30 years for
$525.99 a month.
CAJUNNSC 3 years ago