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True. It's the enabling that the Fed provides that fuels this behavior across other financial segments that is troubling.
Understand, it's growing rapidly. Still, we're talking $billions as opposed to $trillions that were in play when the housing bubble burst.
True. It's the enabling that the Fed provides that fuels this behavior across other financial segments that is troubling.
I could be wrong, but I thought home loan interest rates and down payment requirements are the same for everyone on the day they get approved, as long as they meet the minimum credit score standard.
And if I don't think it's a good thing is there a practical reason for interest rates to be "naturally" higher at this point?
Blake I do not believe that is correct but my source is gone for the weekend…Loan brokers get different packages all the time…A person with a less desirable credit can get financed but sometimes at a higher interest rate or as Cosmic said with a bigger down payment…Just like Ford can offer 0% finance to a person with excellent credit or 15% finance for a person with bad credit…
Text Message from broker…
I can go as low as 640 credit score…Higher rate for lower credit score is correct…With big down payment on purchase or large equity on refi, rate is minimized…
Last edited by Sportcamper; 04-12-2013 at 01:45 PM.
Ok. I think though that even the worst credit won't mean more than maybe 1% extra?
I haven't heard of anyone hitting over 7% in the last ten years.
I got locked in at 5% four years ago with less than perfect credit....which asking around was about the norm
It's about time we have a record again. I'll bet we would be at 17K+ if we didn't have the 2008 bailout and elect all Democrat majorities in 2008.
It is nice that my mutual funds approximately doubled since 2009 though.
are you talking about auto????
lots of people are paying 9% or even way more on auto loans. knew someone recently paying 14% on her mazda.
u guys can't be serious. ya'll are so far out of the know. i work in subprime auto..try 23% if you want high.
The only financing I would take for a car loan is 0% interest rate financing.
That's a pretty sweet job you were able to score with that uta finance degree.
It can be a really really profitable business. I started a (second) business with a partner in the early 90's buying second chance notes from dealers at a steep discount and servicing them. This was before the big boys on Wall Street got into it. We used my money/credit to start it and he was supposed to run it. I wasn't just buying notes from the fly by nights but from some of the bigger dealers in SA from their used car lots. It worked pretty good after I got employees in place (had 20 when I sold out) to monitor my partner that couldn't keep his hands out of the cookie jar. If he had just been honest and worked as hard at the company as he did trying to figure out ways to get money out of it it he could have eventually made millions. Finally got to be too big of a pain in the ass trying to keep him from stealing from me and I fire sale sold my half (after getting all my startup money paid back) for 350K pretax to another investor group (doctors) he brought in. I warned the new guys that my ex-partner was a thief but they didn't believe me. He ended up breaking the company and the new guys ended up losing a couple of million. Idiots were giving him an upfront percentage bonus to originate notes and letting HIM do the due diligence and price the discounts...how ing stupid can you get?...He was making it on both ends cuz he was getting a kickback from the dealers to overpay for their notes. Greedy sucker stuffed their portfolio with notes they had overpaid for just to get his cheesy 5% commission and live white trash large for a couple of years until the company went broke.
It's about time we have a record again. I'll bet we would be at 17K+ if we didn't have the 2008 bailout and elect all Democrat majorities in 2008.
It is nice that my mutual funds approximately doubled since 2009 though.right, cause 8 years of Bush and his right wing policies had the stock market roling when he left office.
"Maybe the dow has doubled since Obama took office, but it would have maybe TRIPLED if we elected someone who had the same policies as Bush had!"
Last edited by DUNCANownsKOBE; 04-13-2013 at 11:01 AM.
This sounds like my brother in law. I swear, that guy has a knack for starting businesses. He can start them, get a decent amount of clients and bring in revenue like nobody's business, but then he gets greedy after only about 6 mos. He starts to cut corners because he is shady and wants that cash then his business slowly sinks because customers don't want to deal with his shady ass. If he decided that he wanted to start businesses to sell to investors at 6 mos, he could rake it in, but he struggles because he is a moron.
Yeah, my partner really seemed like he had the package...He was a young good looking guy with a great personality...just a super salesman, really smart and energetic...It seemed like the perfect match with my experience, contacts, and backing...sadly as I found out later he just couldn't help himself...he just couldn't be honest and expended most of his intelligence and energy trying to figure out how to get around me and the financial controls I had in place...understand, I was letting him draw a 65K salary (in 1993) during startup for the first year or two when we weren't making a "profit" because we were growing and adding employees to keep ahead of growth.
After he broke that company he moved to the coast and married into money and started several other companies with her family money, embezzled all of them, got divorced etc. I googled his name recently and saw where he got arrested last fall for theft...don't have any details on how that turned out...probably hasn't gone to court yet.
Funny thing, this guy came from a good family and all his brothers and sisters are normal hard working professionals...he was just the black sheep con artist from day one.
yeah people are really starting to figure out how lucrative it is, my company isn't exactly the only one in the market anymore and some of the big banks like wells fargo are now getting heavily into it and taking a little of our business. a lot of those who aren't experts in the area are going to end up getting burned though, i'm not sure how solid their system is. i know we have less loss on our loans than some of the ins utions who do strictly prime lending, there's some math whiz who designed the formula we use that determines the interest rates. whoever was saying earlier that it's more or less the same rate for anyone is terribly wrong tbh, two people with even the same credit score can still get drastically different rates. dti, pti, credit score, time on job, other auto pmt history, etc goes into the equation. that's pretty cool that you thought of it before some of these huge corps made billions off it.
Yeah, you gotta do your due diligence and craft your discounts and holdbacks to cover the inevitable losses. In that market if they get 45 days past due you better be hookin your collateral and minimizing your damage because they ain't gonna catch back up. The new players under bidding you can really up the market.
it's crazy something like 60% of americans now fall into subprime LOL, yup, better bookout those vehicles good too, so you know exactly what you're getting back if u have to repo it and what your losses are going to look like
The democrats took control of congress after the 2006 elections, and scared the out of investors by what they said they would do.
"Maybe the dow has doubled since Obama took office, but it would have maybe TRIPLED if we elected someone who had the same policies as Bush had!"
What did they say they would do?
Be specific.
The ^DJI was sitting at about 11K when the Y2K bubble popped, and dropped to about 8K with 911 helping. It then increased to the 14K level in 2007, which took a quick dive from all the liberal fear mongering as they made aggressive statements against business. My point is that we should have ever dropped to below 7K. I'll bet if the democrats didn't take congress in 2006, we wouldn't have dropped below 12k, and would be sitting at higher than 16k now.
LOL... Acting like Chump... Be specific...
Like they always do. Talk about more regulations and taxes.
Woulda, couilda, shoulda...no results, just projections...but yet here we are with Obama...
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