Comments on: Do the Herd Dance: I’ll Sell if you Sell! Woo Woo! http://www.doctorhousingbubble.com/do-the-herd-dance-i%e2%80%99ll-sell-if-you-sell-woo-woo/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 05 Jul 2008 11:09:30 +0000 http://wordpress.org/?v=2.2.2 By: Dr Housing Bubble http://www.doctorhousingbubble.com/do-the-herd-dance-i%e2%80%99ll-sell-if-you-sell-woo-woo/#comment-105 Dr Housing Bubble Tue, 07 Nov 2006 16:32:00 +0000 http://www.doctorhousingbubble.com/do-the-herd-dance-i%e2%80%99ll-sell-if-you-sell-woo-woo/#comment-105 bubble_watcher:<br/><br/>And don’t forget prepayment penalties. I doubt that many will be able to refinance since the point of jumping into a low payment plan was because they could not afford the higher payment. Why in the world would you get anything aside from a fixed rate if mortgage rates are at 40 year lows? The answer is so obvious but putting one and one together seems to be an exercise in futility in the current marketplace.<br/><br/>In addition, Toll just announced that they have no idea when the housing slowdown will end. Wow, what a thoughtful and deep response to the current situation. They can’t guess a number of how low homes would go but they easily were spouting 10 to 15 percent annual growth for years. bubble_watcher:

And don’t forget prepayment penalties. I doubt that many will be able to refinance since the point of jumping into a low payment plan was because they could not afford the higher payment. Why in the world would you get anything aside from a fixed rate if mortgage rates are at 40 year lows? The answer is so obvious but putting one and one together seems to be an exercise in futility in the current marketplace.

In addition, Toll just announced that they have no idea when the housing slowdown will end. Wow, what a thoughtful and deep response to the current situation. They can’t guess a number of how low homes would go but they easily were spouting 10 to 15 percent annual growth for years.

]]> By: bubble_watcher http://www.doctorhousingbubble.com/do-the-herd-dance-i%e2%80%99ll-sell-if-you-sell-woo-woo/#comment-104 bubble_watcher Tue, 07 Nov 2006 04:23:00 +0000 http://www.doctorhousingbubble.com/do-the-herd-dance-i%e2%80%99ll-sell-if-you-sell-woo-woo/#comment-104 <i>In the same real estate section yesterday, there was an ad from Quicken Loans with a headline stating “Refinance before your rate adjusts!”</i><br/><br/>I seriously doubt that these Option ARM fools are going to be able to refi with negative equity (via negative amortization) and 'sky high' closing costs. If they couldn't afford a conventional loan then, they won't be able to afford a conventional loan now.<br/><br/>However, I could be wrong in the near term, if the banks and mortgage lenders continue to throw money away via mortgage fraud, and can get away with it without incurring any penalties. In the same real estate section yesterday, there was an ad from Quicken Loans with a headline stating “Refinance before your rate adjusts!”

I seriously doubt that these Option ARM fools are going to be able to refi with negative equity (via negative amortization) and ’sky high’ closing costs. If they couldn’t afford a conventional loan then, they won’t be able to afford a conventional loan now.

However, I could be wrong in the near term, if the banks and mortgage lenders continue to throw money away via mortgage fraud, and can get away with it without incurring any penalties.

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