JasonOverstreet's Blog

All of these above, banks and financial institutions need to stop extending credit to people with out the credit history to support it. People also need to start being financially responsible when making house purchases. If it sounds to good to be true it probably is! I see people who make less money then I do purchase much more expensive houses. Of course they have to do it using adjustable rates versus my mortgage that has a low fixed rate and mine is only 20 years.

Americans just want it all, but really don't bother to research what it may cost them in the long run.

There has to be an incredible temptation to lend big bucks to people they know can't keep up with the mortgate. Afterall, they're just going to reposses it and sell it again!! Considering the fact that the interest is paid off first, very few of those who default every pay a dime's worth of the principle. As P.T. Barnum said, there's a sucker born every minute.

What's surprising to me is that it hasn't happened before now. Five straight years of record breaking new home contstruction and purchases is now "leveling off".

Now we can plainly see where all of the investment dollars went after the Dot Com Ballon burst. I wonder what's next....

we are on our 3rd home...moving up each time...yet still we've never bought more house than we can afford. I am a SAHM so we're always careful about $$.

IMO there is PLENTY of affordable housing in Tx..unlike say Cali. People just get enamored of living in the "snooty" parts of town. Why not buy in Arlington near good schools etc...and ride the train to work everyday? That's what the DH does via Hurst. Or Hurst? Bedford? We saw plenty of nice homes and the schools...nice.

Bottom line is people will pay more to live where they feel their address is prestigious. Not where it makes economic sense to live. That leads to trouble when they cannot support their choice with prompt payments on their mortgage.

Banks are in the business of selling loans. They qualify people for an upper limit. But just like highway speeds, some people take that as a minimum offer. So you end up with people qualifying for loans that will chew up half their income. A spouse loses a job, you have a baby, you get sick and you are in a position that you cannot afford your mortgage payment. When we moved from our first home, which we bought for high interest, our payments actually went down two hundred dollars. Good credit can do that for you. But people with sketchy work and credit histories are going to pay more for borrowing money. That's just the way things go and they way banks can recoup if a person doesn't pay. Right now in Cali and Florida there are people buying way too expensive homes and flipping them for the profit. When that dried up they were stuck with homes (merchandise) that they couldn't sell at the inflated value. Affordable housing is at a premium in some areas. I question the value of putting one bedroom condos that cost a quarter of a million dollars downtown when there are people who work downtown that would gladly live downtown if there were moderately priced apartments or homes available. There is alot to be said for moving to the inner ring suburbs, but until DART gets the northwest corridor laid with rails, it's a hit or miss option for transit into town. I do think people are buying based on their personal visions of their own status. I have a friend who has a housecleaning service and she said lots of those huge homes you see in West Plano have nice RENTED furniture on the f

i think its all of them the opnly reasion so many pepole are defaulting on their mortgages is because to many dont know how to budget there money and use them cresit cards and get them way to high and then refinace there houses to pay them off and the felixable rate is killing them now so its more like pepole not thinking before they buy something and then they put there house up so they can look rich

Yes, the lenders and builders are partially to blame; however, I remember a time about 18 months ago when I was on another blog site and people were being downright ugly about the fact that they were "smart" enough to invest in a new home that they intended to turn around and sell in a year for a "high profit". So, ultimately, I would say the buyers are to blame. Afterall they are the ones who sign the bottom line. Greed is not good. Material possessions do not bring happiness or fix a marriage. Unfortunately, those same "investors" are now going to point fingers at someone else and will not take responsibility for their actions. We will all feel the effects of this mess.

As a mortgage loan officer I have seen all three sides of the realm, from being on the wholesale lending side to a loan officer and even a consumer that is a home owner.

The decision to buy a home is a serious, long term investment that is taken lightly just like a marriage; a commitment that folks just walk away from.

Education is the key for success, no matter if we learn it from our parents, schools, friends, relatives or co-workers; sharing one person’s knowledge is an opportunity for your own success.

Everyone wants a fix mortgage loan but the average term a person stays in their home is 2 to 5 years. Depending on their circumstances, a job transfer, marriage, divorce, down- sizing, or starting a family, etc.

Things you should know as a consumer:

A FIXED mortgage rate can be higher then an ARM rate
ARM rates only increase if you do not refinance before they come due
Texas property taxes are high so know your PITI (principal, interest, taxes & insurance)
Talk to your Broker/Loan Officer or Banker 1 yr or 6 months before your ARM comes due, make sure your financial documentation is in order to include but not limit: credit scores, income, assets, employment, etc.
If your Broker/Loan Officer or Banker cannot or will not answer your questions find another Broker/Loan Officer or Banker that will.
Mortgage rates are FICO driven, know your credit score
Remember: No question is ever a dumb question, be a wise consumer and protect your best interest.

Want more info: www.yorklending.com

Credit Card millionaires that refused to live within their means, trying to keep up with the Jones's and on a mission to show everyone how great they have done, Only to wind up a huge dissapointment. I havent seen anything dis prove the old school rule, if its worth having, its worth working for. To easy to bail out and start over. They are doing it to themselves. I have no pitty for them.