Comments on: Jumbo rates are greatly improving!

By: Rhonda Porter

Rhonda Porter — Fri, 19 Oct 2007 18:33:54 +0000

Ubersalad, I don’t take kindly to attacks…which you’ve just admitted to doing. You’ve totally missed my point. As a fellow “professional” I would expect that you would ask me what my opinion is. You’re assuming that I am for a bailout by how you’re phrasing your very first question. You go on to insult me throughout this thread. Why would I even want to engage in a conversation with you based on your tone with me from the start?

This serves as a reminder of why Ardell suggested closing rate posts.

Thanks again, JoeBlow. On that note, I am closing this post to future comments. There’s no sense in allowing Ubersalad to hi-jack it with his/her agenda.

By: JoeBlow

JoeBlow — Fri, 19 Oct 2007 18:30:20 +0000

TJ,

I couldn’t agree more.

Ubersalad,

It seems to me Rhonda became defensive because you directly said something SHE did not say. She said nothing about bailouts being good, those were your words, and you obviously wanted to direct the blog towards your agenda.

I do like the idea of higher interest rates, as long as I am not paying them. So inflate away. I do disagree that people who can afford a jumbo loan should be punished with higher interest rates.

Ubersalad, please show me your previous blog posts about the REAL, obvious, and factual bailouts that this government has created. I hope you were as concerned about that as you are the housing market.

Once the government stops bailing out the Enron’s, Exxons, Worldcoms…stops spending a billion dollars a day on a war, and putting the entire country at risk to China and the rest of the world…we can focus on them “bailing out” overextended regular joe’s.

By: Ubersalad

Ubersalad — Fri, 19 Oct 2007 18:28:11 +0000

Never mind, this isn’t about you and I can see that you won’t engage yourself by taking a side anyway.

My question is now directed to other readers, anyone else think this isn’t a bailout?

By: Ubersalad

Ubersalad — Fri, 19 Oct 2007 18:21:41 +0000

I didn’t attack you until you take the “ignorant” approach. I guess I still assume you’re a professional, but that’s quickly changing.

You put yourself in the public eye by blogging, I didn’t and see no point in doing so.

Spread between jumbo and conforming has always been there, it’s not a new phenomenon and I don’t see the point of using that to change subject here.

By: Rhonda Porter

Rhonda Porter — Fri, 19 Oct 2007 18:15:24 +0000

Thanks, tj. I agree. If the borrower is well qualified, why should they have a significantly higher rate? A 20% down jumbo-buyer with excellent credit and job security full doc loan is less risky than someone who is squeaking in with no reserves.

By: tj

tj — Fri, 19 Oct 2007 18:12:48 +0000

I’m actually all for high interest rates since I believe in a strong dollar and low inflation even if it brings on a recession. I also believe home prices are seriously inflated and high interest rates will help speed-up the correction and short-duration pain is better than extended pain.

What I’m not for is the spread between jumbos and conforming rates. This spells lender fear to me. I’d rather see that the fear is handled by very strict qualifying rules than a “risk” premium. Proper down payments and documented sufficient income should not be punished with higher interest rates just because the home is expensive. Their are homes that actually are worth +600k after the current bubble excess has been removed.

By: Rhonda Porter

Rhonda Porter — Fri, 19 Oct 2007 18:12:03 +0000

Ubersalad. I am a professional. I don’t attack people on blogs…especially under an alias. I stand by my name. You stating why you think raising the limits is a bail out is completely different than insuating what you think I believe.

By: Ubersalad

Ubersalad — Fri, 19 Oct 2007 18:11:00 +0000

I know this is your advertising portal and it is necessary for you to be politically correct in your comments.

I just didn’t see the need to dance around my comment and went straight to the point.

By: Hank Williams Sr.

Hank Williams Sr. — Fri, 19 Oct 2007 18:10:30 +0000

I’d say it works fine for FHA because they’re low dollar value loans with stricter qualifying standards. If FHA is underwriting loans on homes priced 8+ times the local median income (as a $625K home would be in King County) not only is this a government bailout of the upper middle class but it’s encouraging people to take on unhealthy amounts of debt backed by uncle sam.

Since the KC median was around $400K in September, conforming loan limits of $417K are more than adequate to provide support to entry level home buyers. We don’t need higher conforming limits in Western Washington unless incomes start supporting these bigger loans.

By: Ubersalad

Ubersalad — Fri, 19 Oct 2007 18:08:44 +0000

I assumed you’re a professional, and I assumed you understand why I think raising conforming limit and lowering jumbo rate is “bailout”.

“Ubersalad, where did I say anything about me being for a bailout?”

I guess you can’t follow where I am coming from without spelling it out.