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Old 08-23-2008, 12:20 PM   #161
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and your point is? Yankees and people from the old country tend to want to stay put and would never put themselves in hock for 40%. People in LA/Silicon Valley/Honolulu who knows?

If my debt/income ratio is under 30% (maybe it's 20% like W2R, or even 10%!) then I can also more easily bear the situation of not making equity headway right away. At 40% or more I have far greater obligations and far less flexibility. Feh.
My point is that your point is irrelevant w/r/t how much of a payment goes to principle.
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Old 08-23-2008, 01:36 PM   #162
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your point is irrelevant w/r/t how much of a payment goes to principle.
Marquette, respectfully, I don't think it is irrelevant.
Let's say we have a family with an income of $100k and $40k of that goes to recent mortgage debt of almost entirely interest. A second family with a $100k income takes on a similar mortgage structure for a house that costs 1/2 as much. They can coast paying $20k of mostly interest OR they can accelerate payments.. they have more latitude to pay down principle if they choose. That's how I see it, anyway. The 40% family has that 40% noose around their neck that ain't goin' anywhere.
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Old 08-23-2008, 11:02 PM   #163
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I can see this is going to head in the same direction as other parts of the thread so I'll abstain.
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Old 08-28-2008, 05:58 AM   #164
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Why is everybody getting all high and mighty about principles? Is this an ethics thread?
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Old 09-07-2008, 08:34 PM   #165
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50% of the credit losses in the second quarter of both Fannie Mae and Freddie Mac were Alt-A Mortgages. This occurred even though only 10% of their portfolios were Alt-A.

With 9.2% of mortgages in the U.S. being either more than 30 days delinquent or already in foreclosure, today's decision by the Fed to place these two major players in the secondary mortgage market in conservatorship did not come too soon. Were Alt-A loans the straw that finally broke the camel's back?

U.S. Seizes Mortgage Giants - WSJ.com
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Old 09-07-2008, 08:44 PM   #166
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and the so called professionals said their computer models made by people with phd's predicted that people with good credit will never default at such high rates. absolutely shocking
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Old 12-15-2008, 07:54 AM   #167
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Sunday's CBS 60 Minutes carried a news segment about the second wave of mortgage foreclosures- Alt A and Option ARMs with the projected meltdown continuing through 2011:


The Mortgage Meltdown Video - CBSNews.com
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Old 12-15-2008, 07:57 AM   #168
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Sunday's CBS 60 Minutes carried a news segment about the second wave of mortgage foreclosures- Alt A and Option ARMs with the projected meltdown continuing through 2009 and 2010:

The Mortgage Meltdown Video - CBSNews.com
See this thread: A Second Mortgage Disaster On The Horizon?
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Old 12-15-2008, 01:33 PM   #169
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Sunday's CBS 60 Minutes carried a news segment about the second wave of mortgage foreclosures- Alt A and Option ARMs with the projected meltdown continuing through 2011:


The Mortgage Meltdown Video - CBSNews.com
This is all why I do not want to buy a house anytime soon. Maybe my wife will believe me now.
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Old 12-15-2008, 05:36 PM   #170
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This information has been freely available on the Internet for four years at least now.

Is it somehow more real now that the mainstream media is saying it is so?

Does the fact that TV and newspapers now state that Alt-A and even prime loans are in deep trouble somehow make it a fact, whereas it was tin-hat fantasy before?

Isn't it easier just to ignore information you don't want to deal with because it's too disturbing.

How about killing the messenger?

Isn't it better to denigrate someone who points out uncomfortable truths, then later say that nobody could have known?
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Old 12-15-2008, 10:31 PM   #171
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Yes?
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