Tag Archives: Patty Knaggs

Real Estate Folks Upset That Minimum Down Payment On A House Might Go To 20% Like That’s a Bad Thing

Gloucester Real Estate agent Patty Knaggs posted A link to this article-

Will 20% Soon Be the Minimum Down Payment on a Home?

by The KCM Crew on January 23, 2013 · 2 comments

Increased CostSeveral government agencies are reviewing data to determine what will be the minimum down payment required under the new Qualified Residential Mortgage (QRM) guidelines scheduled to be revealed in the next few months. In the original Mortgage Market Note issued by the FHFA, it was suggested that loan-to-value (the percentage of the overall purchase price which was being borrowed) was a major factor in determining if a loan would default:

“For most origination years, requirements for borrower credit score and loan-to-value ratio are the factors that most reduce the ever-90-day delinquency rate of mortgages acquired by the Enterprises that would have met the proposed QRM standards.”

The note then made the following proposal:

“An LTV ratio qualified residential mortgage must meet a minimum LTV ratio that varies according to the purpose for which the mortgage was originated. For home purchase mortgages, rate and term refinances, and cash-out refinances, the LTV ratios are 80, 75, and 70 percent, respectively.”

Basically, the original note suggested that a 20% down payment should be the new guideline. We realize that there has been much debate on this issue since and that the minimum down payment required under the new QRM guidelines will probably be less than 20%. However, we can’t know for sure.

Bloomberg reported last week:

“The six regulators drafting the separate QRM rule, including the Department of Housing and Urban Development, the Office of the Comptroller of the Currency and the Securities and Exchange Commission, must decide whether to include such a requirement — and whether to make it less than the 20 percent they originally proposed.”

Will it be more difficult to qualify for a mortgage after the new QRM rules are announced? Probably

As David Stevens, President of the Mortgage Bankers Association said during a speech in Washington on Jan. 16:

“I have consistently warned of the regulatory tidal wave to come and it’s finally upon us. These changes will impact business operations and the future of mortgage access for years to come.”


My response:

I remember going for my first loan back when I was 22 years old.  I had a decent enough amount of money saved from working every summer since I was 9 down here at the dock but the bank turned down my loan application.  The reason they gave me was because it was for one half of a duplex and they didn’t like to give loans on duplexes in case the other half of the duplex turns out to be a stiff and doesn’t have the money to maintain the place properly.

It was the very best thing that ever happened to me in my financial life.  Not because the investment would have turned out to be a good one or a bad one but because it made me so angry, so determined to prove that bank wrong it drove me to work and save like a maniac. 

Remembering advice my dad had told me- “A bargain isn’t a bargain unless you really need something” and   “Just because something was on sale doesn’t mean you should buy it” and another one he used to say- “The guy that makes $50,000 a year but saves $10,000 is way better off than the guy that makes $100,000 but spends $110,000.”   Two great pieces of advice that served me well.  I’m not quite the maniac saver that I used to be but being disciplined early on has definitely helped me in mid life.

Anyway before I get too far off track I’d like to say that I think that our Federal Government and Business Community and American Workforce has Become INSANELY OUT OF SKEW WITH WHAT THEY DESERVE.  As if owning a home is a right and you should only have to put down 2.5% or zero percent.  Or businesses should always have access to cheap money in the form of crazy low interest rates just to keep the American Economy going.

These cheap rates and low thresholds for homeownership are exactly IMO what got us into the mess we are in.

Damn right someone should have to prove they can save the 20% for a down payment before they own a house.  Have a goddamn stake in the game.  If you can’t afford it, forgo  the trips to the mall and the playstation and make the sacrifices you need to make to get there.  If you still can’t afford it, rent til you can. 

Perpetually low interest rates for business communities seems to make capital flow to less than perfect investments.  The people that saved all their lives and should be rewarded by the ability to invest in low risk cds and bonds but there’s no payback any more.  They’ve made money so cheap by printing so much of it it forces people at the end of their lives when they should be investing conservatively into riskier stocks.

When I was 20 years old 20% down was more or less standard for what you would put down on a house.  If you defaulted on the loan the financial institution who took the risk on you at least has that 20% that you put down to work with in trying to get out of that bad investment they made in you.

Every time it comes around to the discussion of interest rates on CNBC these financial dudes keep clamoring for lower interest rates, artificially lowered by the amount of money they want the government to print.  Well our financial system has become so addicted to these cheap rates they’ve backed us into a corner that any rise in rates would be catastrophic.  It’s catastrophic because you’ve put on way too much risk for what you can handle.  How about teaching responsibility instead of bail outs?  How about rewarding savers instead of teaching people that being a good American is to spend spend spend?

In my opinion there shouldn’t be any as in ZERO no money down loans or 2.5% down loans.  Not unless you have other assets that you can pledge in case you bail out on it.  It should probably start at 10% down and that’s only if you have a pretty good track record of job history and savings.

Maybe I’m old fashioned that way.

Gloucester Webcam of The Day- Cape Pond Ice

Check Out The Cape Pond Ice Website Here

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This Webcam and more can be found at www.gloucesterwebcam.com

This www.gloucesterwebcam.com local webcam portal project was an idea I had last year to have as many webcams streaming from local businesses or organizations as possible which highlight the incredible vistas that we as people that live and work here get to enjoy each and every day.

The idea was to have the organization install the webcam, have them embed the webcam feed on their own websites as well and have a link to each business website on the Gloucester webcam portal website to showcase their business as well.

Tim Blakeley from Gloucester Bytes provided the initial installation at ridiculously cheap cost because he believed in the project.

Gloucester Webcam of The Day- Patty Knaggs Cut Bridge Webcam

This Webcam and more can be found at www.gloucesterwebcam.com

image

Check Out Patty Knaggs Real Estate Website Here

This www.gloucesterwebcam.com local webcam portal project was an idea I had last year to have as many webcams streaming from local businesses or organizations as possible which highlight the incredible vistas that we as people that live and work here get to enjoy each and every day.

The idea was to have the organization install the webcam, have them embed the webcam feed on their own websites as well and have a link to each business website on the Gloucester webcam portal website to showcase their business as well.

Tim Blakeley from Gloucester Bytes provided the initial installation at ridiculously cheap cost because he believed in the project.

Gloucester Webcam of The Day- Cape Pond Ice

Check Out The Cape Pond Ice Website Here

image

This Webcam and more can be found at www.gloucesterwebcam.com

This www.gloucesterwebcam.com local webcam portal project was an idea I had last year to have as many webcams streaming from local businesses or organizations as possible which highlight the incredible vistas that we as people that live and work here get to enjoy each and every day.

The idea was to have the organization install the webcam, have them embed the webcam feed on their own websites as well and have a link to each business website on the Gloucester webcam portal website to showcase their business as well.

Tim Blakeley from Gloucester Bytes provided the initial installation at ridiculously cheap cost because he believed in the project.

Gloucester Webcam of The Day- Patty Knaggs Cut Bridge Webcam

This Webcam and more can be found at www.gloucesterwebcam.com

image

Check Out Patty Knaggs Real Estate Website Here

This www.gloucesterwebcam.com local webcam portal project was an idea I had last year to have as many webcams streaming from local businesses or organizations as possible which highlight the incredible vistas that we as people that live and work here get to enjoy each and every day.

The idea was to have the organization install the webcam, have them embed the webcam feed on their own websites as well and have a link to each business website on the Gloucester webcam portal website to showcase their business as well.

Tim Blakeley from Gloucester Bytes provided the initial installation at ridiculously cheap cost because he believed in the project.

The GloucesterCast Podcast Episode 9

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http://goodmorninggloucester.files.wordpress.com/2011/05/051911gloucestercast.mp3

Click here to play or save the podcast

In this episode- Patty Knaggs on WBUR, Abby Ytzen/Captain Joe and Sons seARTS Partner With An Artist Exhibit May 21st, Kenny’s Strange Footwear, community garden at Burnham field, tomato release day is coming up at Goose Cove, Gloucester reads poetry and Sawyer Free Library, Khan Studio/ Good Morning Gloucester Gallery on Rocky Neck, Kenny’s Real Estate Segment

Patty Knaggs on WBUR http://radioboston.wbur.org/2011/05/11/home-selling-market

Abby Ytzen/Captain Joe and Sons seARTS Partner With An Artist Exhibit May 21st

Kenny’s Strange Footwear, community garden at Burnham field,

tomato release day is coming up at Goose Cove may 25 http://www.goosecovegardens.com/

Gloucester reads poetry and Sawyer Free Library- Joey’s Poem Here

Khan Studio/ Good Morning Gloucester Gallery on Rocky Neck

, Kenny’s Real Estate Segment

Please leave comments or questions on which topics you would like to hear more about on The GloucesterCast or how we could improve. Thanks for listening.

Check Out Kenny’s Blog- TheCutBridge.com

The GloucesterCast Theme Song Gloucester Til The End Music is from Earl and Arch- you can download it for free at GimmeSound here-http://www.gimmesound.com/EarlAndArch-1/

Subscribe to the podcast here

Once at iTunes if you feel like rating the podcast that would help it get recognized in the iTunes searches.

Have You Lost A “mercedesish” Key?

Patty Knaggs writes-

Hi Joey,

Would you mind posting this pic on the blog?  Spied it on the Magnolia Swamp trail in Ravenswood, heading up to the Salem Trail on the end of trail farther most from the parking lot.  Found it in December/January I believe (pre snow deluge).  So why did I wait so long to try and find its owner?  Put it in a coat pocket and forgot about it…..sorry about that.  Logo at top of silver part looks mercedesish (thats a word, check it out in wikipedia) to me.

foundkey