Comments on: What new jumbo mortgage rules mean for expensive zip codes http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/ Fri, 05 Dec 2014 11:27:18 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: janonamous http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-8227 Fri, 30 Sep 2011 19:31:16 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-8227 John2224 – the government may subsidize Charlotte more than NYC by making a greater percentage of homes eligible for GSE purchase, but one could also argue NYC and specifically Wallstreet has benefitted asymetrically from Treasury bailouts and Fed monetary policy. I live in San Diego in a high valued home, so this will negatively impact the value of my home. But I know I could always sell my home and move elsewhere if desired, using part of the equity to puchase a home outright and live off the remainder.

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By: JimSwitzer http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-8058 Mon, 19 Sep 2011 02:26:18 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-8058 John2244, I fail to see why New Yorkers believe that their life style costs should be imposed on the rest of the country in terms of taxation, which is exactly what happens when the insolvent Fannie or Freddie backs up mortgages, to get the interest rates down. Actually, neither agency should exist, but, to the extent it does, it should only insure average Americans, not wealthy New Yorkers, who happen to be living a lesser lifestyle solely because they are competing for space with other wealthy New Yorkers. This attitude is the same one that fleeced the world and caused the World Financial Crisis.

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By: Adam_S http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-7907 Fri, 09 Sep 2011 21:27:47 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-7907 If you want to borrow at lot of money to purchase a home, it’s now going to cost you more. Big deal. If that’s a problem, don’t buy it. Period.

John’s argument makes sense to some degree, but it’s not just about ratio, it’s about price. A larger loan amount is a larger loss if it defaults. There’s no ratio involved with that. If there weren’t definite economic gains to be had by living places with very high costs of living, people would live elsewhere. If you want the benefits, pay the cost. It’s pretty simple. Most likely, the benefits are still going to outweigh the costs.

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By: John2244 http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-7902 Fri, 09 Sep 2011 16:23:50 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-7902 High is relative term. The point is the government makes an arbritary line that impacts people. We have 1,000,000 dollar loan for a 1,900,000 property. Our income is about 600K/year and we live in a nice but pretty normal 1800 square foot apartment in Manhattan. By brother lives in Charlotte and has a similar ratio of house price, mortgage, and salary but the amounts are much less. His home is slightly larger than hours.

We consider ourselves in the same quality of life for our families and children – the only difference is the cost of living. Effectively the government subsidizes his jumbo loan but not ours when the risk is the same. This is just due to living in a more expensive place. The government should back up any JumboLoan to any amount if the buyer has the downpayment and salary to cover OR they should not subsidize any loans.

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By: Loanpro http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-7901 Fri, 09 Sep 2011 16:23:33 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-7901 “… as big as $2 million available to lenders with good credit scores and enough cash to keep up with the payments.” Why not “available to borrowers” ???

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By: dude. http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-7900 Fri, 09 Sep 2011 13:56:48 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-7900 meant to say “can’t afford”

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By: dude. http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-7899 Fri, 09 Sep 2011 13:56:24 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-7899 It still seems awfully high. If you can afford a $700,000-$800,000 house, dont buy one. Havent we learned anything over the last 5 years?

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By: TreeMcGee http://blogs.reuters.com/reuters-wealth/2011/09/08/what-new-jumbo-mortgage-rules-mean-for-expensive-zip-codes/comment-page-1/#comment-7898 Fri, 09 Sep 2011 13:55:58 +0000 http://blogs.reuters.com/reuters-money/?p=19323#comment-7898 These numbers were in place a year ago. Like them or not they will provide some certainty for real estate valuations which may help stabilize the market. Sellers will need to adjust their numbers accordingly and those refinancing are likely to be asked to bring money to the table.

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