Home Buying in 10577>Question Details

Steve,  in Great Neck, NY

A real estate analyst for a mortgage servicing company told me 40% of mortgages over 750,000 our seriousy

Asked by Steve, Great Neck, NY Sun Feb 22, 2009

delinquen or already in Foreclosure. He says its will take until 2010 to work off the excess inventory. Should I wait till 2010 to buy? Jumbo rates seem very high to me? 7%, vs 5% for 5/1 IO in 2004 when prices were lower and the economy was much much stronger

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good morning joe..
by the rates you are quoting (jumbo arm's) it seems you are looking for investment properties..
am i correct?
if this is true, you are in it for the short term (you want to flip the properties) ...
at the rates you are being quoted that is extremely good as you do not intend to keep
the properties long anyway..
please give me some additional details so i can better answer your question..
0 votes Thank Flag Link Tue Feb 24, 2009

Where are you living now? The cost of money, right now is very good - in terms of how much you can borrow and what you'll be paying for those borrowed funds.

I mean - on a jumbo - i don't know the rates specifically but if you're spending7% on that money that's not terrible.

also - are you sure you'll be in the jumbo range?
Web Reference: http://www.tommcgiveron.com
0 votes Thank Flag Link Mon Feb 23, 2009
Why do you want to buy a house? Let's start there....

Do you require shelter? Are you interested in an investment you can flip? Can you truly afford a mortgage over $750,000? Is it possible for you to be happy in a home under $750,000? Are you planning to stay in that home for a very long time? I don't know the answers, but you do.

Or, is it possible for you to wait for the inventory to clear, the economy to get stronger and prices to increase?
0 votes Thank Flag Link Sun Feb 22, 2009
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