/biz/ - Business & Finance

>>56795513
>People falling for the ARM meme loans

That was 15 years ago

>>56376794
it's just a renter making up a situation and coping with the fact that they missed out on the 30 year mortgage for sub-3%

you can't qualify for a home that is 10x your income, and no one was taking out an ARM in 2020 when rates were under 3%

>>56374316
>most of those mortgages were short-term and will now get re-financed (and also later next year) to 6-7%+.

Wrong.

>>56061132
This is a LARP

Rates don't reset after 2 years. The shortest term ARM is a 3-year (this loan is NEVER issued), more commonly 5-year and 7-year.

No one was taking out ARMs in 2021 when it was under 3% for a 30-year fixed rate. ARMs weren't even 2% of all new originations.

>>56025806
Sure, not denying that they're a thing. But they represent less than 5% of the mortgages on the market.

>>55967521
another pipe dream of a priced out renter who has no knowledge of real estate

you cannot borrow for a rental property unless you have 2 years of income showing that you can make the payments on that rental property and whatever debt you hold. your have to have reported the income on your 1040 and paid taxes on it

payments cannot exceed a certain percentage of your gross income... DTI ratios used to be 36%, although in 2017 they raised it to 45% if you meet certain requirements (high credit score, cash reserves, >20% down), and then raised it again to 50% in 2022 for highly qualified buyers (dumbasses are still stuck to 36%)

2007-08 happened because retards were taking out adjustable rate mortgages. ARMs were fucking 30% of loans processed in 2004-07, and when the increased payments were due, retards couldn't afford them

so underwriting requirements changed, banks can't issue those loans to people who aren't qualified, and >90% of buyers have to take out a fixed rate mortgage. this means foreclosures don't happen (foreclosures at a 15 year low, 20x less than 2008) because no one is unable to make their payments because americans are fixed at 30 years at those cheap rates

the percentage of cash buyers is the highest it's been in 32 years - people other than zoomers don't need to borrow at 7% mortgage rates, they simply sell their house, cash in tax-free equity, and buy then next place in cash.

or if they're a recent buyer (2010-21) they keep the place since there's a cheap mortgage attached to it which is better than cash (banks are paying 5.25% interest), then they rent it out to some idiot who gives them essentially tax-free rental income (there's a shit ton of deductions), and use that additional income to increase their purchasing power for a new place