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So when’s the housing bubble bursting?

Hey Julian! said:
What the fuck kind of moron was getting 5 year ARM’s with 2-3% interest rates? :smh:
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Likely, not many before 2020. However, there are people that were in 5-year ARMs before 2020 and never refinanced when interest rates dropped.

Also, those folks that use to the First Time Home Buyer loan to purchase a house, I believe have to do 5 year ARMs for at least 10 years. And I’m not 100% sure they could have refinanced if they were still within that 10-year period when interest rates were low. I’m not confident in what I just said, but that’s how I understand it.
 
4 Dimensional said:
Likely, not many before 2020. However, there are people that were in 5-year ARMs before 2020 and never refinanced when interest rates dropped.

Also, those folks that use to the First Time Home Buyer loan to purchase a house, I believe have to do 5 year ARMs for at least 10 years. And I’m not 100% sure they could have refinanced if they were still within that 10-year period when interest rates were low. I’m not confident in what I just said, but that’s how I understand it.
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WTF!!!!!!!! Yooooo, talk about fucking people over. Jesus Christ . A higher locked rate I understand but they basically are forcing vulnerable people into loans that can totally fuck up their payment if rates go up . The evil in that kinda shit bruh. Fuck, that shit just depressed me.:(
 
Hey Julian! said:
WTF!!!!!!!! Yooooo, talk about fucking people over. Jesus Christ . A higher locked rate I understand but they basically are forcing vulnerable people into loans that can totally fuck up their payment if rates go up . The evil in that kinda shit bruh. Fuck, that shit just depressed me.:(
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I notice that ARM loans are being pushed a lot these day, they are trying to convince people that the ARM loan might work out cheaper in the long run.
 
SOld my house about a month ago.. wasnt even looking to sell really.. But came across an offer that i couldn't refuse....

So Im going to sit on the surplus funds and rent some place until this market bottoms out... Hopefully a year.....

If your buying something now that's kind of idiotic... Not trying to buy something at 650 now and then its worth 450 in 2 years..... Looking at the rental market I can tell a lot of people are renting right now because all the property's in the nice areas have been getting snatched up before I get a chance to sign a lease.....

This thread has good info.
 
Flawless said:
I notice that ARM loans are being pushed a lot these day, they are trying to convince people that the ARM loan might work out cheaper in the long run.
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That’s one of the major reasons for 2009. Rates adjusted and people saw that their home values tanked. All of a sudden you upside with a much higher payment. People said fuck it. Might as well let that shit go. I’m sure ARMs are not a large part of the market now, but it’s a head scratcher that anyone with normal purchasing situation would take one.

Man I remember this dude I worked for a little back in 2005 was talking about this “Strong ARM” loan he was getting for his dream house he was building. I remember thinking they named the mortgage “ Strong ARM”:confused:.:lol: Anyway, at the time I’m like 22/23 and I don’t know shit about mortgages. He’s explaining how it works to me and I distinctly remember thinking that shit don’t even sound right. Couple years later the market crashed and I’m still wondering what happened to that dude’s house. He was about his hustle though so I hope he figured it out.
 
Hey Julian! said:
WTF!!!!!!!! Yooooo, talk about fucking people over. Jesus Christ . A higher locked rate I understand but they basically are forcing vulnerable people into loans that can totally fuck up their payment if rates go up . The evil in that kinda shit bruh. Fuck, that shit just depressed me.:(
Click to expand...

Yeah, those who do not qualify for the First Time Home Buyer loan can still do the 5-year ARM and they have the option to refinance to fix rates afterward. But a lot of these stipulations depend on the mortgage lender too.
 
Hey Julian! said:
That’s one of the major reasons for 2009. Rates adjusted and people saw that their home values tanked. All of a sudden you upside with a much higher payment. People said fuck it. Might as well let that shit go. I’m sure ARMs are not a large part of the market now, but it’s a head scratcher that anyone with normal purchasing situation would take one.

Man I remember this dude I worked for a little back in 2005 was talking about this “Strong ARM” loan he was getting for his dream house he was building. I remember thinking they named the mortgage “ Strong ARM”:confused:.:lol: Anyway, at the time I’m like 22/23 and I don’t know shit about mortgages. He’s explaining how it works to me and I distinctly remember thinking that shit don’t even sound right. Couple years later the market crashed and I’m still wondering what happened to that dude’s house. He was about his hustle though so I hope he figured it out.
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ARMs are more protect now of days versus 2008. I’m not even sure 5-year ARM were even a thing in ‘08. I think lenders were just giving people adjustable rates without a 5 year stipulation.
 
cocodc said:
SOld my house about a month ago.. wasnt even looking to sell really.. But came across an offer that i couldn't refuse....

So Im going to sit on the surplus funds and rent some place until this market bottoms out... Hopefully a year.....

If your buying something now that's kind of idiotic... Not trying to buy something at 650 now and then its worth 450 in 2 years..... Looking at the rental market I can tell a lot of people are renting right now because all the property's in the nice areas have been getting snatched up before I get a chance to sign a lease.....

This thread has good info.
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I want to do the same thing but I ain't trying to move to an apartment. Even small homes in my area are renting high as hell.
 
moblack said:
I want to do the same thing but I ain't trying to move to an apartment. Even small homes in my area are renting high as hell.
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Yeah I aint doing a APT...for sure...lol.. And yeah in the DMV area rent is high as hell.. But its worth it for me to do it 12-18 months or so... Because of what I am getting in surplus.

But yeah its hard. A co-worker of mine she lives in a covetted community. And she has had people come to her trying to buy her house because inventory is extremely short right now for home buyers in certain areas. But she said that even if she sold and made a profit she would NOT be able to move into something comparable right now without paying 200k+ more than her current mortgage so its a no go for her.
 
Hey Julian! said:
Shiieet, they bout to get flipped on something real tough. If you holding a flip for more than 2 years chances are you fucked up anyway. :smh:
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In a downturn market anything goes. Better to hold and make a couple hundred a month until the equity comes back than.....

praetor said:
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This...no fucking way. Makes no sense if this is how you feed your fam to take that loss
 
Smoke Van Gundy said:
In a downturn market anything goes. Better to hold and make a couple hundred a month until the equity comes back than.....



This...no fucking way. Makes no sense if this is how you feed your fam to take that loss
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Problem is when that ARM resets they are going be fucked regardless unless what they can rent the home for is enough to covered that. Guarantee those ARMS are in the 2.5% range and the very best rates right now is 6.5%. That’s like $500 a month difference monthly payment on a $200k mortgage.
 
Hey Julian! said:
Problem is when that ARM resets they are going be fucked regardless unless what they can rent the home for is enough to covered that. Guarantee those ARMS are in the 2.5% range and the very best rates right now is 6.5%. That’s like $500 a month difference monthly payment on a $200k mortgage.
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People also forget when you refinance you have to pay closing costs, taxes and fees all over again.
 
Hey Julian! said:
WTF!!!!!!!! Yooooo, talk about fucking people over. Jesus Christ . A higher locked rate I understand but they basically are forcing vulnerable people into loans that can totally fuck up their payment if rates go up . The evil in that kinda shit bruh. Fuck, that shit just depressed me.:(
Click to expand...
capitalism. the fed does what the banking institutions want
 
Smoke Van Gundy said:
In a downturn market anything goes. Better to hold and make a couple hundred a month until the equity comes back than.....



This...no fucking way. Makes no sense if this is how you feed your fam to take that loss
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This is what caused the last housing bubble to crash. investors taking out loans because rates were so cheap and not being able to do quick flips meant they were getting underwater on those loans and would be even worse off if they had continued to hold on to the properties. the lie that they sold the public about what caused that market crash is part of the criminality of banks and wallstreet huslters.
 

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