6mil Americans are behind on their mortgage

[Pahelwan4]

1 hour ago, ErraBook_monagadu said:

This house on the market for 8 months. Price cut from 1.3m to 1.15m now, still no buyers.

https://www.zillow.com/homedetails/6341-Zink-House-Dr-Tracy-CA-95377/300276460_zpid/

Endi CA lo intha cheap homes aaa. Charlottte Atlanta lo kuda dorkatledu ee price ki in some desi suburban areas lo. 

[ErraBook_monagadu]

8 minutes ago, Pahelwan4 said:

Endi CA lo intha cheap homes aaa. Charlottte Atlanta lo kuda dorkatledu ee price ki in some desi suburban areas lo. 

Tracy is not suburb, these are 65 miles from SF.

65 miles is usually out of state in many areas

[ErraBook_monagadu]

For context, 65 miles is 105km.

That is the distance from Patancheru Telangana to Bidar in Karnataka 

[har_D_ick]

36 minutes ago, idibezwada said:

i don't get your logic...if you are locked in 7% interest rate and avg appreciation is 5% a year, aren't you loosing money?

This was back in 2010 and i got interest locked at 4.5 % 

But the bigger picture I am trying to tell the OP is that if you like the neighborhood, it's commutable, and within your budget, and a 10- 15% correction( though it's not likely ) doesn't matter. Also for residence 7% locked in with guaranteed that interest wont go down, you are still building equity and staying in your own home rather than paying rent.  
 

E tracy ekkada undho endho naku telvadhu, but in a decent area for primary residence I don't think too much and try to time the market as long as my personal financial fundamentals are good

[ErraBook_monagadu]

18 minutes ago, ErraBook_monagadu said:

For context, 65 miles is 105km.

That is the distance from Patancheru Telangana to Bidar in Karnataka 

$1.5M tho Tracy( California Bidar) lo house purchase chesina valla kosam okkasari andaru East tirigi govinda govinda kottandi

[ErraBook_monagadu]

Two minutes silence observe cheyandi

Pravachaka Baladevanda sagara Aakashavni Tracy 

[hunkyfunky3]

11 hours ago, har_D_ick said:

Lol.. i seriously doubt you ever bought a home here . Like I said you buy what you think you can handle.. For primary residence as long as you can pay mortgage comfortably and you like where you stay it doesn't matter . In long term it will go up, Barring any 2008 kind of housing crisis which I don't think will happen . 

I own a home and yes I am actively looking for a new home and 10 % correction for me doesn't matter as long as I like the home 

 

12 hours ago, ErraBook_monagadu said:

Other tejam commented another thread that as long as you live 8 years or longer in the same house it’s not going to matter ani. 
 

Common sense lekapovatam valla ee thinking. You pay total $3m on that house in the end it depreciates to 500k value in that market. villaki visa lu ela istunaro emo, appudapudu maga is correct anipistundi, desis are inherently low iq and fit only for servitude.

 

8 hours ago, har_D_ick said:

dude u are so fond of tracy .. i dont know how to make u understand.. Can you please show me a trend in Naperville or Schaumburg or frisco area where the prices reduced from what was bought 5 years ago and also just because ur neighbor listed a home for less than urs its doesn't mean anything unless u are selling now . So again as long as it is primary residence and u know u have to stay for long term please dont bother.. Max correction is 10-15% and its nothing in grand scheme and tenure

To give u another analogy, u buy wrong stocks and start saying stock market is collapsing.. U will never go wrong on blue chips or atleast less probability . As long as u are ok to hold it , you will be fine in long term..

Housing collapse is 2008 is what u hear, but price declines started from 2006 itself after peaking in 2005 summer. 

Some homes lost 40 to 50% value and most of them lost 25%. It took 10+years for them to get back in value. But, if it's primary residence and you can pay mortgage then most came out on position side.

At that time, small % of subprime loans collapsed the entire market. 

Is the same situation now? If there are no jobs, then it doesn't matter if you it's subprime or not... interest rates are similar. 

Study job market is key for housing values. We will know real picture only after 1 year ...

[har_D_ick]

6 hours ago, hunkyfunky3 said:

 

 

Housing collapse is 2008 is what u hear, but price declines started from 2006 itself after peaking in 2005 summer. 

Some homes lost 40 to 50% value and most of them lost 25%. It took 10+years for them to get back in value. But, if it's primary residence and you can pay mortgage then most came out on position side.

At that time, small % of subprime loans collapsed the entire market. 

Is the same situation now? If there are no jobs, then it doesn't matter if you it's subprime or not... interest rates are similar. 

Study job market is key for housing values. We will know real picture only after 1 year ...

You are right and that is what my point is..If it is your primary residence and you are in your comfortable limits, dont think too much about neighbors appreciation or decline. its very hard to time market.. There is other school of thought that prices might go up with tarrifs and lumber shortage 

 

https://awealthofcommonsense.com/2025/03/when-will-housing-prices-fall/

[hunkyfunky3]

1 hour ago, har_D_ick said:

You are right and that is what my point is..If it is your primary residence and you are in your comfortable limits, dont think too much about neighbors appreciation or decline. its very hard to time market.. There is other school of thought that prices might go up with tarrifs and lumber shortage 

 

https://awealthofcommonsense.com/2025/03/when-will-housing-prices-fall/

With current interest rates and inflation, prices will go up in most places. If you are comfortable with monthly payments on a primary home, you should buy. Don't go overboard and make sure the payment is less than 40% of your income. 

 

 

[hunkyfunky3]

On 4/1/2025 at 8:18 AM, hunkyfunky3 said:

With current interest rates and inflation, prices will go up in most places. If you are comfortable with monthly payments on a primary home, you should buy. Don't go overboard and make sure the payment is less than 40% of your income. 

 

 

With inflation and kids expenses , car maintenance etc even 40% may be a stretch. Most of my friends who bought 10+ years ago have mortgage between 3500 and 4500, including property taxes. Even that is feeling like a stretch for us.

How are this generation paying 6k to 8k for million dollars+ homes? 

How are they getting qualified by banks ? All of them have 2 incomes? 

 

[ErraBook_monagadu]

12 minutes ago, hunkyfunky3 said:

With inflation and kids expenses , car maintenance etc even 40% may be a stretch. Most of my friends who bought 10+ years ago have mortgage between 3500 and 4500, including property taxes. Even that is feeling like a stretch for us.

How are this generation paying 6k to 8k for million dollars+ homes? 

How are they getting qualified by banks ? All of them have 2 incomes? 

 

Welcome to the magic world of mortgage brokerage. Traditional banking rules don’t apply for these lenders, it is back to gfc in a different name.

They can include your rsu, options, any made up income to get you qualified for any amount you want.

 

[hunkyfunky3]

1 minute ago, ErraBook_monagadu said:

Welcome to the magic world of mortgage brokerage. Traditional banking rules don’t apply for these lenders, it is back to gfc in a different name.

They can include your rsu, options, any made up income to get you qualified for any amount you want.

 

Are you sure? Anyone else confirm this? 

If true then it's back to 2008 ...

[ErraBook_monagadu]

Just now, hunkyfunky3 said:

Are you sure? Anyone else confirm this? 

If true then it's back to 2008 ...

How do you think family with single income $120k qualifies for $1M house at 7% interest rate? 
 

 

[ErraBook_monagadu]

Even worse happening with auto loans. 30k negative equity rolled over to new car purchases and loans 7 years or longer. 
People paying $1000 monthly payment on $30k cars.