December 11, 2009

"Must Qualify with XYZ Lender"

Financing Games If you’ve been hunting for a home lately, you’ve likely encountered it: the tantalizing new listing that requires prospective buyers to “qualify with XYZ Lender.” Which of the following choices is the best explanation for that: A. The Seller wants to make sure that prospective Buyers can afford the home;B. XYZ Lender offers...
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The Scourge of Cash-Out Refinancings

Thirty Years in a Home — And No Equity It used to be that people who had owned homes for a longer time were less leveraged than recent purchasers, but the refinancing boom changed that. “A coordinated increase in leverage among homeowners during good times will lead to sharply higher correlations in defaults among those...
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