Politics

[PHOENIX PHIL]

California is truly F-up! Let's motivate illegal immigration by providing you a means to buy a house. While thousands of vets are homeless. Just brilliant.

California is close to approving a measure that would make illegal immigrants eligible for up to $150,000 in state-supported home loans for down payments.

https://twitter.com/x/status/1828170199717290375

Known as Measure ULA — for United to House LA — the ordinance marketed as a “mansion tax” will impose a 4% tax on property sales above $5 million, rising to 5.5% on sales above $10 million. So a $5-million sale would include a $200,000 tax, and a $10-million sale would include a $550,000 tax, which is typically paid by the seller.

L.A.’s rich are already scheming ways to avoid new 'mansion tax'

Homeowners, developers and real estate agents are all bracing for the incoming mansion tax set to hit L.A. next year.

www.latimes.com

Not to mention that the housing crisis in 2008 was brought about in part and made worse by writing sketchy home loans. Made worse further by the difficulty to foreclose on properties with loans in default. A brilliant example of not learning from history.

 

[Ed Lally]

For years Biden/Harris have asked me, no, they have TOLD ME to not believe my LYING EYES!!:

• Inflation does not exist.
• The Border is secure.
• The Economy is the best in Decades.
• Inflation is Transitory.
• 16,000,000 NEW Jobs have been created.
• The Border is Secure. (Yea, she also said that more than once.)
• Crime is down.
• Inflation is down (maybe the rate, but not the costs!!)

Now Harris is telling me she is:

• Not responsible for the Border fiasco.
• Not opposed to Fracking
• Is not in Favor of the Green Deals
• Will bring down Prices on Day One (her day 1000 past last year)
• Will increase oil production.
• Has an original thought – “No tax on Tips!!”
• Wants to build the WALL!!
• No mandates on EV’s.

Next, she will:

• Put on a Blue Jacket
• And a Red Tie
• Dye her hair ORANGE
• Speak the TRUTH

 

[Wishfulthinker580]

My wife and I have been hesitantly looking for a home for a while now but have decided to hold off for a bit given the current climate. I just wanted to add something on the topic of home loans. When we discussed it with our bank they approved us for a loan that was over double the budget we had decided on. Significantly above the national average. I’m not going to get into the details but the payment would’ve been an amount that would’ve practically guaranteed foreclosure if one of us lost our job and weren’t able to work. When our loan officer told us how much we were approved for it floored me. I wanted to ask her if she was serious. I’m admittedly overly cautious in a lot of ways but I seriously felt that it would’ve been a predatory loan and I can’t imagine that they would consider it. It’s no wonder that people are living paycheck to paycheck if they’re choosing to get loans like that.

 

[Ed Lally]

One-trick pony.

one-trick jackass

 

[Tanks]

...When our loan officer told us how much we were approved for it floored me. I wanted to ask her if she was serious. I’m admittedly overly cautious in a lot of ways but I seriously felt that it would’ve been a predatory loan and I can’t imagine that they would consider it. It’s no wonder that people are living paycheck to paycheck if they’re choosing to get loans like that.

I just bought a Lexus GX 550 Overtrail+. I told the dealer that I would wire the funds to them and the funds most likely be in their account the following Tuesday (it was Thursday evening when we were closing the deal).

They said I qualified for a 0% down Lexus loan if I wanted to take it home that night, a 72 month loan. I asked if people really went for those types of loans and was answered in the affirmative. Needless to say, I declined and picked it up last Tuesday.

I can't imagine people getting on the hook for $1,500 a month car payment, not to mention about $15K interest during the life of the loan.

 

[Wishfulthinker580]

I just bought a Lexus GX 550 Overtrail+. I told the dealer that I would wire the funds to them and the funds most likely be in their account the following Tuesday (it was Thursday evening when we were closing the deal).

They said I qualified for a 0% down Lexus loan if I wanted to take it home that night, a 72 month loan. I asked if people really went for those types of loans and was answered in the affirmative. Needless to say, I declined and picked it up last Tuesday.

I can't imagine people getting on the hook for $1,500 a month car payment, not to mention about $15K interest during the life of the loan.

That’s a beautiful vehicle.

Absolute insanity on the loan stuff. People do it every single day and it’s mind boggling. Loans and interest give me heartburn.

 

[Tanks]

I would have taken the loan if it was 0% interest instead of 0% down. Jeep had a deal a few years ago, 0% interest if the loan duration was 36 months. Jumped on it for girlfriend's Jeep. I figured it was another 10+% discount by having that money invested.

 

[PHOENIX PHIL]

My wife and I have been hesitantly looking for a home for a while now but have decided to hold off for a bit given the current climate. I just wanted to add something on the topic of home loans. When we discussed it with our bank they approved us for a loan that was over double the budget we had decided on. Significantly above the national average. I’m not going to get into the details but the payment would’ve been an amount that would’ve practically guaranteed foreclosure if one of us lost our job and weren’t able to work. When our loan officer told us how much we were approved for it floored me. I wanted to ask her if she was serious. I’m admittedly overly cautious in a lot of ways but I seriously felt that it would’ve been a predatory loan and I can’t imagine that they would consider it. It’s no wonder that people are living paycheck to paycheck if they’re choosing to get loans like that.

It's been awhile since I've applied for a mortgage, sitting on a 2.75% interest rate now, can't even dream of that now. But as I recall the standard for the banks based on good credit is to approve up to 25% of the borrower's income for a monthly payment. And that I believe does not included taxes and insurance.

A little research beyond your own life's experiences will show that the "experts" will tell you once you get to 20% of your take home pay is being absorbed by debt, you're moving into the danger zone. From my own experiences, I'd say even 20% is high. Why the banks want to take on such risk boggles my mind. I've had the same experience of "but you're approved for so much more" discussions.

 

[Wishfulthinker580]

I would have taken the loan if it was 0% interest instead of 0% down. Jeep had a deal a few years ago, 0% interest if the loan duration was 36 months. Jumped on it for girlfriend's Jeep. I figured it was another 10+% discount by having that money invested.

0% interest is quite the offer IMO. Smart decision

 

[Wishfulthinker580]

It's been awhile since I've applied for a mortgage, sitting on a 2.75% interest rate now, can't even dream of that now. But as I recall the standard for the banks based on good credit is to approve up to 25% of the borrower's income for a monthly payment. And that I believe does not included taxes and insurance.

A little research beyond your own life's experiences will show that the "experts" will tell you once you get to 20% of your take home pay is being absorbed by debt, you're moving into the danger zone. From my own experiences, I'd say even 20% is high. Why the banks want to take on such risk boggles my mind. I've had the same experience of "but you're approved for so much more" discussions.

Yes our current interest rate is under 4% as well- really don’t want to sign onto 7%+. I’m going to give a little detail and say that the payment on the loan they approved for us would’ve been more than my wife brings home and around 80% of my bring home. Like you said that’s before the taxes and insurance! It literally would’ve been around 40-50% of our bring home together… 20% towards debt is high to me as well.

 

[Datchew]

I just bought a Lexus GX 550 Overtrail+. I told the dealer that I would wire the funds to them and the funds most likely be in their account the following Tuesday (it was Thursday evening when we were closing the deal).

They said I qualified for a 0% down Lexus loan if I wanted to take it home that night, a 72 month loan. I asked if people really went for those types of loans and was answered in the affirmative. Needless to say, I declined and picked it up last Tuesday.

I can't imagine people getting on the hook for $1,500 a month car payment, not to mention about $15K interest during the life of the loan.

I would have taken the loan if it was 0% interest instead of 0% down. Jeep had a deal a few years ago, 0% interest if the loan duration was 36 months. Jumped on it for girlfriend's Jeep. I figured it was another 10+% discount by having that money invested.

My uncle used to call compound interest the 8th wonder of the world.

He always said there are 2 types of people in the world: Those that understand it, and those that pay it.

 

[deewayne2003]

I just bought a Lexus GX 550 Overtrail+. I told the dealer that I would wire the funds to them and the funds most likely be in their account the following Tuesday (it was Thursday evening when we were closing the deal).

They said I qualified for a 0% down Lexus loan if I wanted to take it home that night, a 72 month loan. I asked if people really went for those types of loans and was answered in the affirmative. Needless to say, I declined and picked it up last Tuesday.

I can't imagine people getting on the hook for $1,500 a month car payment, not to mention about $15K interest during the life of the loan.

@Tanks - I have a friend that is so good with finance and management that he is now the general manager for 3 LARGE car dealerships in DFW that are owned by a publicly traded auto group and the information I get from him is scary.

Defaults on auto loans for people with 700+ credit scores have almost tripled since covid. The main cause being the massive "adjustments" to prices because of the supply chain issues + high interest rates + depreciation = vast amounts of people that are $30K+ upside down on car loans within 2 years of purchase.

While in college my personal finance professor made us look through different 0% interest loans and explained that the finance department had looked over the loan paperwork from several auto finance offers and came to the conclusion that with all the "initial fees" they could not find a single 0% loan that was financially better than a 5% loan..... and that was in 2003!

Housing is another bubble - @Wishfulthinker580 : I feel your pain, all the houses for sale are being sucked up by cash buyers; the banks are happy to over lend to you because they know that unless you are a cash buyer the only option you have to actually buy a house as a borrower is to overpay.

When I started my business in 2020 I took out a personal line of credit @4.25%, fast forward to 2024 I was quoted 12.75%!

 

[Alistair]

It's been awhile since I've applied for a mortgage, sitting on a 2.75% interest rate now, can't even dream of that now. But as I recall the standard for the banks based on good credit is to approve up to 25% of the borrower's income for a monthly payment. And that I believe does not included taxes and insurance.

A little research beyond your own life's experiences will show that the "experts" will tell you once you get to 20% of your take home pay is being absorbed by debt, you're moving into the danger zone. From my own experiences, I'd say even 20% is high. Why the banks want to take on such risk boggles my mind. I've had the same experience of "but you're approved for so much more" discussions.

Sign of the times I guess.

With the ratio of median income / median house prices being what they are, banks don't have much choice. They can either approve mortgages for massive percentages of people's annual salary... or not sell any mortgages.

A mortgage of less than 20% of gross income is a total mortgage payment per annum of less than 12k/year for the average American. Even on a 30yr mortgage, that ain't buying you a house in most of America. So that percentage starts ticking up. Throw in higher mortgage rates and it ticks up even more.

Now it's just 'normal' to approve 30%, 35%, even 40%. I guess they can take solace in the fact that's still cheaper than renting in a lot of markets, but still alarming.

 

[WAB]

0% interest is quite the offer IMO. Smart decision

I did that on my last truck. Paid it off as soon as the 0 interest period ended.

 

[Tanks]

...

While in college my personal finance professor made us look through different 0% interest loans and explained that the finance department had looked over the loan paperwork from several auto finance offers and came to the conclusion that with all the "initial fees" they could not find a single 0% loan that was financially better than a 5% loan..... and that was in 2003!

...

Well, in my specific case the out the door price of the vehicle did not change for the 0% loan. We had already negotiated the purchase price of $X below MSRP. There were no initial fees (and I think that is illegal in CA, anyway).

When I started my business in 2020 I took out a personal line of credit @4.25%, fast forward to 2024 I was quoted 12.75%!

Wow, that is pretty high, mine is based on the prime rate. That being said I have an old Citibank card that never has an interest paying revolving balance on it. I use it because it has a 24 month no interest on anything over a $400 purchase. I recently got notice that the interest rate on it is now 36.4%. I feel sorry for people that miss paying their large purchase off in time and have to pay that rate. I usually pay the purchase off at least 2 months before the expiration date.

 

[Wishfulthinker580]

Ukraine info in it too

 

[Brent in Az]

Oregon is not too far behind Kalifornia. I guess it's due to all the Kalifornian immigrants who ruined that state. Unbelievable.

Oregon Plan Offers $30,000 to Help Migrants Buy Homes.​

MSN

Seems this country is taking a deep dive down the socialist rabbit hole. Never mind the veteran's who need a home, let's give it to the illegal freeloaders.

 

[deewayne2003]

Well, in my specific case the out the door price of the vehicle did not change for the 0% loan. We had already negotiated the purchase price of $X below MSRP. There were no initial fees (and I think that is illegal in CA, anyway).

I believe you are correct about the fees being illegal in CA, and you are definitely an informed consumer so you don’t fall for the pitfalls like the salesman offered you with 0% down.

After the 0% fees lesson my professor who was in his 70’s said…..

“Now watch and see, car salesmen will dangle this 0% carrot infront of elderly people looking to buy a car cash and they’ll go for it”

Sure enough, I come home for Christmas and my great uncle is disgusted with the local dealership for not offering a cash discount on his new F150 so he took the 0%; we looked through the paperwork and that loan had thousands of dollars in upfront fees so even if he paid off early the money was still gone. My great uncle was so angry he paid the loan in full after only 4 months and never bought another Ford.

This same professor stated in 2003…..
“This home loan situation is going to be BAD, people will be loosing their homes all over this nation in a few years- if your buying a home now get it on a 15year fixed note”

Best college professor I ever had!… and I took his personal finance class as an elective.

As for the 12.75% PLOC offer, my banker also stated that was based on prime; but I was so disinterested at that point I stopped listening.

 

[Tanks]

...

As for the 12.75% PLOC offer, my banker also stated that was based on prime; but I was so disinterested at that point I stopped listening.

It must have been Prime + X points rather than just Prime.

 

[steve white]

I just bought a Lexus GX 550 Overtrail+. I told the dealer that I would wire the funds to them and the funds most likely be in their account the following Tuesday (it was Thursday evening when we were closing the deal).

They said I qualified for a 0% down Lexus loan if I wanted to take it home that night, a 72 month loan. I asked if people really went for those types of loans and was answered in the affirmative. Needless to say, I declined and picked it up last Tuesday.

I can't imagine people getting on the hook for $1,500 a month car payment, not to mention about $15K interest during the life of the loan.

Agreed. And would add that I've gone stupid in the last 5 years for buying newer vehicles. I always fixed up classics like my old 37' Ford P/U street rod or 1950's vintage Mercedes, etc. I put a lot into them, but kept the receipts to hand over to the new owner when I sold them for 2-5 times what I gave for them. (and still sold too low) Now it's just a waste of depreciation.