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Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

detroitnews.com

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Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#181

Post by brianwawok »

hibbelig wrote: post #164
tzs wrote: post #148

Earlier quoted context omitted.

> that people were given loans they should either never have gotten (2008) or that they shouldn't have asked for I bought my house in early 2007 and mortgages were indeed crazy back then. My analysis said that at the mortgage rates for a 30 year fixed mortgage back then (a tad over 6%) said that my ideal home financially would be around $H or less, that I could go up to 1.25 $H without house payments being high enoug…

Not familiar with this topic. What does $H mean? Annual gross salary?

Just a number he made up for a story.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#182

Post by voidfunc »

hibbelig wrote: post #164
tzs wrote: post #148

Earlier quoted context omitted.

> that people were given loans they should either never have gotten (2008) or that they shouldn't have asked for I bought my house in early 2007 and mortgages were indeed crazy back then. My analysis said that at the mortgage rates for a 30 year fixed mortgage back then (a tad over 6%) said that my ideal home financially would be around $H or less, that I could go up to 1.25 $H without house payments being high enoug…

Not familiar with this topic. What does $H mean? Annual gross salary?

$H is the price of the house in OPs post.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#184

Post by bitexploder »

onlyrealcuzzo wrote: post #173
doctoboggan wrote: post #170

My wife and I will be moving to Chicago soon and we intend on buying a house when we get there. How screwed are we by the current housing situation and interest rates?

How soon? If trends continue, prices will start falling. You might be able to offer under asking, too. I bought 15% under asking in October of last year. Chicago didn't really go crazy like Phoenix or Palm Springs...

Most of Denver region had been hot as well.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#185

Post by maxerickson »

tzs wrote: post #148
hans1729 wrote: post #19

Earlier quoted context omitted.

I mean, it's not really a burst, we're just hearing the hissing noise of the obvious leak. The true demand from people with the intend to actually live in the estates has been constantly decreasing since around 2000; the real salarys dropped since then, so did the buying power. The only reasons people found buyers at x3-x10 (!) prices were a) that there is a class of people wealthy enough to still afford the purchase…

> that people were given loans they should either never have gotten (2008) or that they shouldn't have asked for I bought my house in early 2007 and mortgages were indeed crazy back then. My analysis said that at the mortgage rates for a 30 year fixed mortgage back then (a tad over 6%) said that my ideal home financially would be around $H or less, that I could go up to 1.25 $H without house payments being high enoug…

Out of curiosity, would a new well have been possible for less than 0.26 $H?

(to separate the house from the group, not a maintenance hedge)

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#187

Post by ferdowsi »

kortilla wrote: post #94
JetAlone wrote: post #90

Buying a home mortgage is signing yourself over to a lifetime of servitude and uncertainty if you lose your income stream. Buy a property out of pocket to live in and make the most of a DIY life at a fraction of the cost and an odd stress differential, or just keep renting and be agile enough to roll with the punches.

Getting a mortgage is the easiest way to build wealth through government subsidized leverage (mortgage interest deduction).

After the 2017 tax reform bill, itemizing deductions is not cost effective for the vast majority of Americans.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#188

Post by treeman79 »

brianwawok wrote: post #179
geoduck14 wrote: post #169

Earlier quoted context omitted.

I'd like to provide some context around the approved amount. Countrywide (and other originators) get their rates from Fannie Mae and Freddie Mac. These two have guidelines set to approve X monthly payment based on your income (for instance, you can spend 28% of your income on your primary house). These guidelines are set for BROAD populations - specifically very poor and "normal" people have the same guidelines. For…

Imagine if billionaires used the 28% rule. Important to compare like renting a modest Apartment. If that payment that works for you is X, maybe 3X is too much house? Houses also take a lot of repair, and need things like new roofs and HVAC.

Billionaires buy houses by the thousands and then rent them out.

There are a few areas of the country where you basically cannot rent from a private party anymore. 90%+ are one of a handful of mega rental corps.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#189

Post by tialaramex »

geoduck14 wrote: post #169
tzs wrote: post #148

Earlier quoted context omitted.

> that people were given loans they should either never have gotten (2008) or that they shouldn't have asked for I bought my house in early 2007 and mortgages were indeed crazy back then. My analysis said that at the mortgage rates for a 30 year fixed mortgage back then (a tad over 6%) said that my ideal home financially would be around $H or less, that I could go up to 1.25 $H without house payments being high enoug…

I'd like to provide some context around the approved amount. Countrywide (and other originators) get their rates from Fannie Mae and Freddie Mac. These two have guidelines set to approve X monthly payment based on your income (for instance, you can spend 28% of your income on your primary house). These guidelines are set for BROAD populations - specifically very poor and "normal" people have the same guidelines. For…

> Also, it is a generally accepted "fact" that home ownership is good, and poor people should be encouraged to buy a house.

Which has the undesirable effect that it makes it difficult for workers to move to where the good jobs are, so now you have situations where workers are stuck in place A, doing job 1 for $X even though they should probably go to place B, and do job 2 for $Y -- because to move from A to B they'd have to buy a house in place B, and sell their house in place A, which is both annoying and relatively expensive.

This varies culturally, IIRC Poland and Germany - despite being neighbours - have different cultural assumptions about whether it's "normal" to buy a home rather than renting.

Maybe a shift to more Work From Home reduces the problem by allowing workers to take more jobs in place B despite actually living in place A.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#190

Post by SilasX »

cascom wrote: post #122
runeks wrote: post #106

Earlier quoted context omitted.

Sure. > Why do you refinance if rates go up? Surely the point is that if rates go up you've locked in a better rate You don't have to, but you can choose to either (a) keep the same rate and owe the same amount, or (b) get the new (higher) rate and owe less. > How does half your debt disappear if rates go up? It doesn't exactly. However, the market value of your mortgage loan halves if the rate doubles (roughly). Thi…

Except no bank (at least in the us) will cut that deal, because they don’t mark those loans to market.

Yeah, that was my reaction too. But ... why not? It still seems possible. I mean, between banks they definitely have to mark it to market in order to sell the mortgage, so they would take a big hit to sell when interest rates go up.

So, why can't you put on a funny hat and glasses, get a new mortgage at the higher rate, and then go buy your existing one at a discount?

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