Mortgage Times

[mikejr]

well i've started to see some loan terms going out as far as 40 years new instead of the gold standard 30 year loan. Seems like lenders are coming up with new products to allow people to "afford" buying a home.

Look at the interest only loan products. Those are great, but when people use them to buy a house in an appreciating market which suddenly goes in the crapper, they now have a principal balance over what the property is worth....they need to sell for whatever reason....and cant...they just owe too much....so the property goes to f/c.

As to how a person can get a loan when they just got f/c on I havent a clue. I know this particular person put about $20K down, so maybe the b/c lender felt it was a good risk. I havent a clue. I've always protected my credit rating like it was the launch codes to a nuclear missle. There are people out there that could give a crap less about what their rating is.

You know i've always wondered what the repo rate was on vehicles. I would guess it has to be high. When I go in to buy a vehicle, there is no income verification, they ask what i make and check credit and I sign my name hand me the keys and off i go. Now the probability of someone with perfect credit defaulting is slim, but i wonder how many people with less than perfect credit walk in...sign and drive home with a new car?

[mikejr]

MarineHawk....not sure we can derail this logical conversation train here....its rolling fast.....LOL

[Adam in CO]

I have lenders offering 50, yes fifty, year amortization schedules on their loans. Please understand that while this is a great alternative to interest-only loans, as some principal is being applied, they still all have 30 year balloons.

[Agriv8r]

we have a few lenders doing 96 months on HUMMERs

[mikejr]

its amazing that they offer a 50 year am on a loan. We're going to have 100 year am loans before you know it just so people can afford to live in a house....its crazy!

What kinda of rate are they charging on a 96 month hummer loan?

[usetosellhummer]

got a job?
no credit, slow credit? even BK
We can get you into a home and new car!
no money down and easy terms

[MarineHawk]

Originally Posted by mikejr

What kinda of rate are they charging on a 96 month hummer loan?

NFCU = 7.0%
http://www.navyfcu.org/rates/lease-frameset.html

[mikejr]

not a bad rate on a truck, thats a long time to be paying for it though. wow.

I just say an article in our Realtor trade mag that said the foreclosure rate on one particular type of loan is 14%, how can these companies that lend money and take these hits stay in business.....i think it goes to show you just how much money the banks are making!