Federal Housing Subsidies

[Dean Hoffman]

This is an editorial about Freddie Mac and Fannie Mae. "Should the government subsidize buying houses that cost $1.2 million? The answer is obviously no. But the government is going to do it anyway through Fannie Mae and Freddie Mac. The Federal Housing Finance Authority (FHFA) has just increased the size of mortgage loans Fannie and Freddie can buy (the ?conforming loan limit?) to $970,080 in ?high cost areas.? With a 20% down payment, that means loans for the purchase of houses with a price up to $1,212,600."

[gfretwell]

$970,080 in ?high cost areas.? With a 20% down payment, that means loans for the purchase of houses with a price up to $1,212,600."

More welfare for the rich.

[lkpo]

[e-mail] wrote

The rich don?t have mortgages, stupid.

[Ralph Mowery]

They probably do now. With interest rates below 5 % and stock up 20 % . I could have bought a car about 3 years ago with cash, but with 0% interest I financed it and probably will make (save) around $ 5000 by doing it that way. Years ago with high rates I financed a car at 4 % but was making 6 % on the money in savings.

Not that I am rich,but I am sure the 'big boys' borrow money all the time if the rates are low.

Now who is stupid ?

[lkpo]

Nope.

With interest rates below 5 % and stock up 20 % .

The rich don't need to fart around like that.

The rich don't.

You.

[Jim Joyce]

My uncle isn't rich, but about a year and a half ago he bought a $600K house, putting 20% down and taking a 30-year mortgage on the rest. He was 89 at the time.

He says exactly what you say above. He can earn a whole lot more on his investments, percentage-wise, than he's paying in mortgage interest. Never mind the fact that he'll never live to pay that thing off, but he doesn't care and according to him, the bank doesn't care, either.

[lkpo]

Jim Joyce [e-mail] wrote

But he isn't RICH, stupid.

[Ralph Mowery]

Is Buffett rich enough for you ?

Could go on, but enough of fooling with you .

[Clare Snyder]

Around here the rich don't buy $1200000 houses. "Rich" starts around $2 million now. Neice just sold a bungalow on 1/3 of an acre in a less than desireable area of town for $900000 in 3 days - First offer was 20% over asking. They are moving about 300km north - staying with my brother (her dad) for a year while finding land and building a house. If they don't hurry up they'll be spending all they got for the old place on the new place.

[Clare Snyder]

No, that's how the rich get and stay rich. They make thair money, and other peoples' money make them money. Playing the margins is where they make money.

[Clare Snyder]

Depends how you describe rich. On a worldwide scale if you have a roof over your head, food in the cupboard and 6 months living exoenses in the bank or in investments you are in the top 5%? If you OWN that roof, in the top 3% or so.

[lkpo]

Yes.

That's not a mortgage ON HIS HOUSE, stupid.

[lkpo]

Clare Snyder [e-mail]> wrote

Still nothing like rich.

That stat is bullshit.

[lkpo]

Clare Snyder [e-mail]> wrote

Not anymore. The real rich now get that way by having a good idea, implementing it well and getting stinking rich that way.

They make thair money, and

Still nothing to do with whether they NOW have a mortgage on the house they live in.

[lkpo]

Clare Snyder [e-mail]> wrote

That's not really rich either.

Neice just sold a bungalow on 1/3 of an acre in

Sure, but that's not the rich.

[rbowman]

iirc the last car I financed was an '80 Camaro. same deal, at 0% why not? I carry the insurance that would satisfy a lender anyway.

I've seen 0% deals since but they didn't coincide with me desiring a new car.

[lkpo]

Separate matter entirely to how many of the rich have mortgages ON THE HOUSE THEY LIVE IN.

[gfretwell]

The zero % deals usually cost you about $1500 in the price of a $30,000 car and they will kick that back if you don't use the zero % money. If you use their regular financing there may be another $1000 in it for you. Then you pay that loan off as soon as they will let you, usually 90 days. Cash is not that attractive to them.

[Wade Garrett]

Better them than third generation welfare slacker-poor...

[Ralph Mowery]

Main reason for cards in the safe is I got money for just getting the cards and using them for 3 months. Too many to keep in the billfold. With several companies giving 5 % if you use their store cards I have about 6 or 8 if not more. Then there are a few other cards that are not money type cards I need to have on me all the time I am out of the house.