Posted on May 5th, 2008 in Mr Mortgage's Personal Opinions/Research
In this video, I cover what I have always used as indicators of a home’s value or investment potential. There is no perfect valuation metric due to wildcards never before seen, such as bank REO inventory, which made up 38% of the existing home sales in March in the state of CA and is being discounted by 20-50%. But, at the very least this video outlines some easily understandable indicators and describes in detail the biggest risks confronting prospective home buyers. Oh and by the way, please subscribe to this blog by entering in your email address above and an daily recap will be sent to your email address. -Best, Mr Mortgage
YouTube Video Link http://www.youtube.com/watch?v=1PDeMZYRjLQ
Foreclosure Radar Link http://www.ForeclosureRadar.com
How much house can you afford?Use this table below is conjunction wih the video above in order to figure out how much the median home owner in your city can afford now that all the exotic loan programs are gone. The answer may shock you.
This simple table below illustrates how so much affordability has been lost in the past year. Without exotic loan programs/guidelines such as interest only, stated income, zero down, 2nd mortgages to replace down payment, higher debt-to-income (DTI) ratios, Pay Option ARMs etc, we have gone back to a 30-yr fixed rate society overnight.
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