This is a lie. PMI is not intended to make up for the differences in fee schedule. I would expect such blatant misunderstanding by CDS or Sys, but I know you know better.
Democrats Infuse Communism Into Mortgage Loans
- Thread starter 2012Bearcat
- Start date
This is sort of true, unless you are putting less that 10% down on a loan. In which case, the new system rewards you with lower fees which seems counter-intuitive. So a good borrower who puts 20% down actually pays more in fees for that loan than the same borrower does who only puts 10% down who pays more than one who puts less than 5% down.
And the PMI schedule (counter to your prior statement) didn't change. In fact, its worth noting, that while the fee schedule for the loan itself was rebalanced over many more Credit score categories (going from 740 as the top threshold to 780 as the top threshold) a similar credit score adjustment wasn't made for PMI calculations.
In effect, in the prior system, the better your LTV and the better your credit, the lower your fees. Which makes common sense. In the new system, your LTV serves as a bell curve, and both extremes (High and Low LTV) get significant discounts in fees vs. the middle of the road LTVs (70-85%), And thus those who are putting down a legitimate down payment (say 20%) are subsidizing those who can't or don't.
To put it succently, an individual with a 700-719 credit score who puts down 20% on a $500K loan pays more in fees than an individual with a 660-679 credit score who puts down less than 5% on the same loan. (1.375% vs 1.25%). In what economic world does that make sense?
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Difference in LLPAs is risked based. A loan with PMI is lower risk than one without.
This might be your dumbest economic take ever, and that says something given you support MMT. Your sentence would ONLY be true in a world where the loan isn't collateralized. But since you have the collateral of the property to secure the loan, having a lower LTV ensures that the lender (or FM) will be made whole via the liquidation of the property. That's much lower risk than getting an extra $100 per month in PMI payments and having to assume the full valuation risk of the underlying asset.
Let's just say, it's a good thing you have absolutely nothing to do with running our economy.
Oh, how cute. You think it buys insurance. Hey, maybe we could call Flo and bundle and save.
Why don't you provide us your explanation of how PMI works on a FHA loan to us uneducated deplorables. In your own words without using Google. This should be entertaining.
Yes.
Now can you find any combination of credit score and LTV where LLPA+MI increases for someone with a higher credit score or higher down payment?
PMI is just higher payments until a borrower hits a target LTV to compensate the lender for higher collateral risk that comes from loans with a smaller equity cushion. The key difference between mortgage insurance and higher rates to compensate for higher LTVs is higher rates are for the life of the loan and PMI can be removed.
Now can you tell me why mortgage insurance shouldn't be included when comparing the rates people pay in this discussion
Sorry wrong answer there pilt. There is no such thing as PMI on a FHA loan. PMI only applies to conventional loans, MIP applies to FHA loans, but thanks for playing.
You guys can argue all you like about whether PMI should be included in rate calculations and if so how do you factor in the same since they will terminate once a certain LTV is reached. None of this changes the fact that we are increasing borrowing costs for those with excellent credit and significant down payments. From a public policy standpoint such a change makes zero sense as it discourages responsible behavior. I’ve yet to hear any reasonable justification of this change. If we want to encourage those with poor credit to borrow money for home purchases there are better methods than what amount to a tax on good credit borrowers.
I stopped reading 07 comments when he kept talking about PMI on FHA loans
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I stopped reading 07 comments when he kept talking about PMI on FHA loans
.I don't feel like I've been got. But congrats on knowing the ins an outs of FHA loans.
You can't think of any reason to increase borrowing costs when the housing market is red hot and rates are higher than they've been for a decade and a half?You guys can argue all you like about whether PMI should be included in rate calculations and if so how do you factor in the same since they will terminate once a certain LTV is reached. None of this changes the fact that we are increasing borrowing costs for those with excellent credit and significant down payments. From a public policy standpoint such a change makes zero sense as it discourages responsible behavior. I’ve yet to hear any reasonable justification of this change. If we want to encourage those with poor credit to borrow money for home purchases there are better methods than what amount to a tax on good credit borrowers.
I stopped reading 07 comments when he kept talking about PMI on FHA loans
What are you talking about? Housing market has been slowing for more than a year. In fact, the risk of a housing collapse is very much a reality.
Existing-Home Sales
The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.
www.nar.realtor
Housing inventory falls under 1M again as sales collapse - HousingWire
Total housing inventory levels broke under 1 million in December, dropping to 970,00 units for a population of 330 million people.
www.housingwire.com
Where you been brother? Don't be a stranger. 👍What are you talking about? Housing market has been slowing for more than a year. In fact, the risk of a housing collapse is very much a reality.
Existing-Home Sales
The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.
Housing inventory falls under 1M again as sales collapse - HousingWire
Total housing inventory levels broke under 1 million in December, dropping to 970,00 units for a population of 330 million people.
Interest rates and supply chain issues were the leading cause of the decline but this latest ridiculousness will cause a further decline. It shouldn't effect Texas to bad but I suspect areas that are not experiencing a population increase will see the effects.What are you talking about? Housing market has been slowing for more than a year. In fact, the risk of a housing collapse is very much a reality.
Existing-Home Sales
The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.
Housing inventory falls under 1M again as sales collapse - HousingWire
Total housing inventory levels broke under 1 million in December, dropping to 970,00 units for a population of 330 million people.
Along the border, much less Houston and Dallas. El Pasos fvcked. Myorkis is smiling.
Prices not volumeWhat are you talking about? Housing market has been slowing for more than a year. In fact, the risk of a housing collapse is very much a reality.
Existing-Home Sales
The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.
Housing inventory falls under 1M again as sales collapse - HousingWire
Total housing inventory levels broke under 1 million in December, dropping to 970,00 units for a population of 330 million people.
Son is a builder here in the DFW area. He has 32 houses going right now and they are opening up another section of the subdivision in the next couple of months that has another 500 lots. He's pulling his hair out with that may houses going, makes me laugh when I talk to him.
I stopped reading pilt and taking anything he says with any kind of credibility after he admitted he was communist. You really don't need to go further than that.You guys can argue all you like about whether PMI should be included in rate calculations and if so how do you factor in the same since they will terminate once a certain LTV is reached. None of this changes the fact that we are increasing borrowing costs for those with excellent credit and significant down payments. From a public policy standpoint such a change makes zero sense as it discourages responsible behavior. I’ve yet to hear any reasonable justification of this change. If we want to encourage those with poor credit to borrow money for home purchases there are better methods than what amount to a tax on good credit borrowers.
I stopped reading 07 comments when he kept talking about PMI on FHA loans
Uggg. You’re 0-2. Prices are falling and fast
Home Prices in March Posted Biggest Annual Decline in 11 Years
Home sales fell in March, a sluggish start to the crucial spring selling season as higher mortgage rates damped momentum from the previous month.
www.wsj.com
Do you actually think she understands!Uggg. You’re 0-2. Prices are falling and fast
Home Prices in March Posted Biggest Annual Decline in 11 Years
Home sales fell in March, a sluggish start to the crucial spring selling season as higher mortgage rates damped momentum from the previous month.
From all time highs.Uggg. You’re 0-2. Prices are falling and fast
Home Prices in March Posted Biggest Annual Decline in 11 Years
Home sales fell in March, a sluggish start to the crucial spring selling season as higher mortgage rates damped momentum from the previous month.
But let's roll with it. You can't see any reason to increase borrowing costs for all but the most qualified buyers when the collateral prices are falling and fast?
Your original argument was to justify increasing borrowing costs due to a hot housing market. Something which was simply not accurate. As for your latest question…why would we want to artificially decrease housing demand in the face of decreasing sales and home valuations? Further exasperating the trend line. You’re asking for a total collapse of the US housing market. This is the last thing we should be doing given to current economic circumstances. Surely you can at least agree with this based purely from an economic standpoint. Not much arguing it’s bad public policy.
