Comments on: Low Mortgage Rates to Spur New Wave of Defaults http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 21:38:31 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: ButtoMcFarty http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136834 ButtoMcFarty Thu, 01 Jan 2009 20:49:00 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136834 I'm going to be refinancing fairly soon. It's a VA streamline refi, 30yr fixed/no cashout, so there are no appraisals or reapplication requirements. Since I hold disabled vet status I also get to waive the funding fee....I think its somewhere around 1.25%. Basically I'm just lowering the interest and resetting to the unpaid balance, but the VA entitlements make it a lot easier and cheaper. We're out in flyover land. We never saw the massive bubble like the coasts but it did get pretty hot. I'm seeing lots of big lake homes coming on market as the moneyed attempt to dump the second vacation home. The McMansion suburbs are weak too. The farms, large and small, seem to be holding up fairly well.....especially anything with live water. Commercial RE is the real ticking time bomb IMHO. Unless you're selling guns/ammo, just about anything based on retail looks sketchy at best. I’m going to be refinancing fairly soon. It’s a VA streamline refi, 30yr fixed/no cashout, so there are no appraisals or reapplication requirements. Since I hold disabled vet status I also get to waive the funding fee….I think its somewhere around 1.25%. Basically I’m just lowering the interest and resetting to the unpaid balance, but the VA entitlements make it a lot easier and cheaper.

We’re out in flyover land. We never saw the massive bubble like the coasts but it did get pretty hot. I’m seeing lots of big lake homes coming on market as the moneyed attempt to dump the second vacation home. The McMansion suburbs are weak too. The farms, large and small, seem to be holding up fairly well…..especially anything with live water.

Commercial RE is the real ticking time bomb IMHO. Unless you’re selling guns/ammo, just about anything based on retail looks sketchy at best.

]]> By: Mannwich http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136748 Mannwich Thu, 01 Jan 2009 01:03:43 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136748 How can anyone read this and come away thinking that our markets and economy are going to recover any time soon, much less in '09? Do the pundits on TV really believe the nonsense they're spewing? It just blows my mind. How can anyone read this and come away thinking that our markets and economy are going to recover any time soon, much less in ’09?

Do the pundits on TV really believe the nonsense they’re spewing? It just blows my mind.

]]> By: Reinko http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136522 Reinko Tue, 30 Dec 2008 22:21:12 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136522 The first time I did read this article was at Naked Capitalism, the lady that authors that website said stuff like 'Interesting but lets see how this pans out'. We all know house price declines go slow because sellers will often wait another few months to look for a better deal. That is why the present house price decline is so lovely; house by house and family by family the economical reality will set in. Therefore it is not unlogical that this wave of refi will bring down house prices faster, no this is a good insight! The first time I did read this article was at Naked Capitalism, the lady that authors that website said stuff like ‘Interesting but lets see how this pans out’.

We all know house price declines go slow because sellers will often wait another few months to look for a better deal. That is why the present house price decline is so lovely; house by house and family by family the economical reality will set in.

Therefore it is not unlogical that this wave of refi will bring down house prices faster, no this is a good insight!

]]> By: bubba http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136428 bubba Tue, 30 Dec 2008 18:21:50 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136428 word on the street is that many "independent" appraisers are still in cahoots with lenders and can often be "encourage" to put the "right" value on a property. In all practicality I don't think this is as big a deal as Mr M. makes it out to be. IMHO. word on the street is that many “independent” appraisers are still in cahoots with lenders and can often be “encourage” to put the “right” value on a property. In all practicality I don’t think this is as big a deal as Mr M. makes it out to be. IMHO.

]]> By: leftback http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136371 leftback Tue, 30 Dec 2008 15:23:02 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136371 "Prime Jumbo" Housing Prices, c'mon down, we've been waiting for you.....!! Thanks for the insights, Mister M. “Prime Jumbo” Housing Prices, c’mon down, we’ve been waiting for you…..!!

Thanks for the insights, Mister M.

]]> By: Steve Barry http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136362 Steve Barry Tue, 30 Dec 2008 14:50:02 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136362 Updating my Shiller History of Home Values chart with today's number...I see...good news...housing is indeed nearer to a bottom!!! The bad news...it should be back in its normal historic range around 2015. Updating my Shiller History of Home Values chart with today’s number…I see…good news…housing is indeed nearer to a bottom!!! The bad news…it should be back in its normal historic range around 2015.

]]> By: Steve Barry http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136360 Steve Barry Tue, 30 Dec 2008 14:40:07 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136360 It wasn't a joke...Nesto said he would look for a find one It wasn’t a joke…Nesto said he would look for a find one

]]> By: CPJ13 http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136358 CPJ13 Tue, 30 Dec 2008 14:34:41 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136358 SB: lol SB: lol

]]> By: Steve Barry http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136353 Steve Barry Tue, 30 Dec 2008 14:01:38 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136353 CNBC promising to find a silver lining CNBC promising to find a silver lining

]]> By: Steve Barry http://www.ritholtz.com/blog/2008/12/low-rates-spur-new-wave-of-defaults/comment-page-1/#comment-136351 Steve Barry Tue, 30 Dec 2008 14:01:09 +0000 http://www.ritholtz.com/blog/?p=14250#comment-136351 Record Case-Shiller drops hitting the wire now Record Case-Shiller drops hitting the wire now

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