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| Economy |
| Junk mortgages: It just gets worse |
| 2009-12-02 |
| Posted by:GolfBravoUSMC |
| #6 I bought my home in 1990 for $65,000. We started paying ahead on the principle in 1994, and continue today. So instead of having another eleven years to pay, we have 6 1/2. Housing prices on homes in my neighborhood peaked in 2008 at $185,000. Today the going rate is between $135,000 and $150,000. That's because there are 8000 more military slated to move to Fort Carson and the Air Force installations here. Otherwise, prices would be in the low $100k range |
| Posted by: Old Patriot 2009-12-02 23:29 |
| #5 Peter Lynch (the legendary former manager of the Fidelity Magellan fund way back when), could have summed this whole thing up with just two quotes: 1) Never bottom fish. 2) Never invest in any idea you can't illustrate with a crayon. Yeah, I know, he was talking about the stock market, but that pretty much applies to any kind of "investment" anyone would ever offer you. |
| Posted by: Cornsilk Blondie 2009-12-02 13:10 |
| #4 One of the odd aspects of the now-deflating housing bubble was the assumption that demand would keep on rising, apart from interest rates and lending policies. I kept waiting to hear about the counter force presented by the impending mass retirement of the baby boomers and the likelihood that they would try to sell their larger homes or second/vacation homes. Even if they were assumed to then buy a smaller retirement home, the net is an expected large amount of residential square footage on the market for over a decade. Birth and marriage rates don't come close to balancing that out. |
| Posted by: lotp 2009-12-02 13:06 |
| #3 So, Bankers are thieves, hardly NEW NEWS. |
| Posted by: Redneck Jim 2009-12-02 12:29 |
| #2 Buying a house has become like buying a car. You're auto loan is under water as soon as you drive off the lot. |
| Posted by: GolfBravoUSMC 2009-12-02 10:23 |
| #1 Somebody made out on the deal. I'm underwater, but plan to keep paying, in the hope of breaking even, at least until it's time to retire... |
| Posted by: Bobby 2009-12-02 06:46 |