Why 1% Down Mortgages ARE FINE! (According To Lenders…)

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Title	:	Why 1% Down Mortgages ARE FINE! (According To Lenders…)
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its the perfect tine to bring back adjstable rate mortgages to pop this balloon again
Comment from : jblaze114

You absolutely nailed it when stating "financially responsible" please address the appearance of loss when your property value drops but its only a reality, if you sell In other words"you dont loose actual money if you can afford to stay owning it, just as you dont really make $$$ when trhe value goes up, unless you sell" If you are secure in your monthly financial obligations and have been living responsibly & comfortably, nothing changes in realizations of loss or gains unless you sell or change your living expenses
Comment from : Rag Tie

Many buyers working from home bought with higher rates due to home office tax breaks allocating taxes,internet, cell phone, maintenance and interest to the allocated home expensesbrbrThat's how some are bridging the cost of borrowing by trade offsbrbrTaught economics for 27 years
Comment from : Kilipi Estates

Sounds like “On the sidelines”is a beautiful place to be
Comment from : Joe Sprague

Everything is scam
Comment from : palehorse1111

My speculation Many Americans are insolvent Equity in a house will likely be tapped into via a HELOC or straight sale I believe if they sell, many will go back to renting And housing supply will inevitably rise
Comment from : Muller Andre

Building wealth involves developing good habits like regularly putting money away in interval for solid investment Instead of trying to predict and prognosticate the satbility of the market and precisely when the Change is going to happen, a better strategy is simply having a portfolio that's well prepared for any eventually, that's how some folks been Averaging 180k every week these pass 5months according to Bloomberg
Comment from : aubrey woolman

bBuilding wealth involves developing good habits like regularly putting money away in interval for solid investment Instead of trying to predict and prognosticate the satbility of the market and precisely when the Change is going to happen, a better strategy is simply having a portfolio that's well prepared for any eventually, that's how some folks been Averaging 180k every week these pass 5months according to Bloomberg/b
Comment from : aubrey woolman

Geeze, do the RIGHT thing, and get the shaft I've paid off student loans, cars, and THOUGHT I was helping to maintain my high credit score🥺🤷
Comment from : bice

Whoa whoa whoa… If you put 10, or 20 down, it doesn’t matter whether or not the current market purchase price is 30 less As long as you continue to pay the mortgage, you still own it I don’t think anywhere in America is going to go down 30 The point is, if you’re still paying the mortgage, you still own the home Better than paying rent
Comment from : DM Grant

why are u blaming people for trying to get every last dollar out before the crash there needs to be a bagholder in every crash
Comment from : BBSara01

I've learned soooooo much from you Choice words of wisdom and Total Nugget$ here folks Thank you Michael Wake up call for us all👍And your credit score goes down once you finally pay off your Mortgage? That's your reward for all those years of pain? Wow! Didn't see that one coming Of all lifes "rights of passage," to suffer - the last kick-in-the-teeth just as you exit the game How insulting Truly remarkable - real life vs what we sell ourselves, all just to live the dream of Home Ownership Wow!
Comment from : Nyles Gregory

Rents are high and going higher When you rent, it’s very rare utilities are included Add extra monthly pet rent
Comment from : Lisa Hertel

Beautiful area I like the 1 down on real estate mortgages Saving 10 wasn't a big deal for me but helps many people Make it harder to walk away from their loans when they have ability to pay No future loans given for those who default
Comment from : William Lyons

What would their monthly payments be with a 1 percent down payment with a 7 interest rate? No way they can afford that
Comment from : Westley Timothee

Say what you want about Cali, Prop13 made home ownership affordable long term, your property taxes don't go up every year (assuming appreciation) like other states Oh and CONGRATS ON 100k!!!!!
Comment from : Joel Rolley

all of these programs just TEMPORARILY help people get into a house but end up resulting in prices going higher and higher it's a ponzi scheme but with actual assets so not a ponzi, but the growth mechanics rely on constantly more people jumping in and throwing money into real estate
Comment from : kalef1234

I was planning to buy a car and pay cash but since I want to buy a smaller house , I guess I should take out a loan or my credit score will go down
Comment from : Chris Lastnam

It most certainly is a reason to be concerned What a scam FICO scores are!
Comment from : Marilynn Schroeder

I am not a fan of debt; so, I think that the higher the downpayment a person can afford the better
Comment from : Coding

Great video, Michael!
Comment from : Jeannified

I know this place, cool to see you hit up local places I knowbr🫡🙂✌️
Comment from : Josue Argumedo

Yes 1 down is great for disaster
Comment from : DanTheMan

Where’s this happening at Not in my state
Comment from : murda!apolis#612

Hope you're day is going well Michael and I enjoy your content Just wanted to add that although the govt, specifically the Fed can do better with monetary policy, it's high time we start blaming people (ordinary consumers) for making dumb and downright irresponsible financial decisions
Comment from : MrBigBoy4Life

As an eagle scout, what is your take on Netflix's Scouts Honor documentary? any abuse suffered by you? witnessed by you?
Comment from : Keith Hitzeman

1 down and promise to pay allows them on the board to control and write rules effecting a 100 owned property rights and ownership papers and add billings , but never to be rid of association???!!! Theives????
Comment from : M R

The median would be more useful The average is skewed high but very expensive outliers
Comment from : KC

I think the hit on the credit scores are just tempory imo I had crappy credit back in the day and paid everything off now it is stellar Funny how the bay area homes are just average ugly homes selling for millions Location, location location !
Comment from : novadhd

Thank you Michael 😊Relocated to Texas from NJ🙏
Comment from : Jennifer Estwin

Lenders have to get these toxic assets off their balance sheets and the 1 down payment rule might help them doing it
Comment from : mickeymedic70

My credit score also took a hit when I paid off my car and my mortgage Previously, it was a perfect 850 Now, I use a credit card that I pay off in full every month but my credit score is still down
Comment from : R Murphy

So the joke here is that you are saying I can be a 1’er in America with little to almost no money down
Comment from : John Doe

Banks are looking out for your best interest 😂
Comment from : sholland42

Still "STUCK" in California ,Huh?
Comment from : Charleton Zimmerman

Great show! I absolutely love watching all your videos The problem is that the majority of mortgages are backed by the government As a result, banks don't really worry about the risks
Comment from : Maciej Wiater

Got to be careful about buying a house that has an older roof Imagine a year after buying your insurance won't renew your policy unless you replace the roof
Comment from : NMB

You are just telling it like it is
Comment from : Phillip Linkous

The way I see it being a good situation when you have families of 4 and 5 living in a 1 bedroom in Los Angeles paying Only $1,000 it's doable they can buy something and Still paying up to 6 $7,000 in a mortgage if they would all work a lot of the time they won't work they get lazy
Comment from : ginacardarella

Even putting 50 down on a similar home in my neighborhood today, my mortgage would be higher than I locked in 2 years ago with 5 down
Comment from : BDUBB24

Sell the hype Buy the hysteria When you hear old people on Cramer saying "Godbless for all you do Have you heard of this airbnb We are thinking of getting one to get a little cash as we didn't save" you are at full HYPEbrbrYour condo example was exactly Dave Ramsay He likely is still a dude bro
Comment from : xrunner55

I just heard that flood insurance is going up 700!!!! Holy S
Comment from : Mike Chase

1 might be good for continuing the bubble Can I put up McDonald's hamburger coupons as collateral?
Comment from : Emcee

Wow Even the mortgage people cant say never Remember after 2008 we will never
Comment from : Stephen Nickel

Let me quote, whoever said this first:br“They have no skin in the game”
Comment from : rho91

Debt-based Economics is so full of FAKE:br1 "Fake it till we make it" (?)brMichael gives the reality 💯
Comment from : by Design

After people get in over their heads, banks will just re-possess the house and make the same deal to the next sucker! Be able to AFFORD your property people! We've learned nothing from this scam that has happened over and over
Comment from : Roman Hollow

Corcoran keeps touting how when rates go down, prices are going up 10-15 She is quite the sales lady
Comment from : Donna B

Rocket mortgage The next Countrywide home loans
Comment from : J M

Michael it’s not that you don’t understand what’s going on but the no money down is their plan is to put migrants in these homes
Comment from : Louis Battaglia

I don’t think that lower down payment will be as much of an issue as people think For example, you can buy down 1 interest, if you bought a home for 240k and you put 40 K down your payments for the mortgage and interest only, goes from 1700 to 1400 but guess what with $3000 you could buy down 1 of the rate which will bring your payments from 1700 to 1400 You could have the same of mortgage payment by buying down the interest rate and giving almost nothing in down payment The only dangerous part is that they allow people to take a loan that can potentially be maxed out to half of your gross pay, that’s risky Low down payment, not risky
Comment from : Luis Gonzalez

I screwed the algo 10 years ago Took small consumer loan which I didn’t need, for a longest period possible, just to continue building a perpetual reliable history Few years later when FED decided to pour money to the market, I was chosen by the algo to be offered cheap and generous loans Not just one time
Comment from : Collin Pippi

young people don’t look for a cushion, they want a place to live first So upside down mortgage for few years is not that a big deal
Comment from : Collin Pippi

Who can put down 20 on these prices??
Comment from : Jenn H

Great video Michael The backdrop on your walk is beautuful Those ranch homes with incredible landscaping is stunning Many with circular or horseshoe driveways Excellent content Thank you!
Comment from : LeeLee

1 down means nothing to the majority 8 for mortgage rates that what people afford the monthly payment for a 400k home
Comment from : Feinick83

I say do what the big boys do Take the 1 down loan The 40 k you would put down put into short term tbills House goes up in value great If not walk like the big boys
Comment from : 10 For The Big Guy

The Bankers really don’t give a shit as long as they get their bonusesthey’d sell their own Grandmother if they had tothey know the bigger they go the less likely they’ll ever be even a slap on the wrist for themthat’s what they learnt from the GFCdo anything you want with no consequences
Comment from : One Eleven

Back in the day 20 down was doable for a $200,000 house Now that prices have doubled Just put 5 down and the rest you can invest
Comment from : Wayne Pearce

All these homes that don't seem to have a car in the driveway or a kids bike on the path to the front door tell me everyone is working there brains out to pay for all this All of the city leaders are stretching their brains trying to come up with ways to drain more property tax from their citizens It is time to stop all this and decide if we want our government to be overlords or servants I will take the latter
Comment from : Noogman

What’s the problem today ?
Comment from : Gabe Gordon

Lending standards are not better in any way right now it will be seen in the next few years
Comment from : Matthew Brooks

⭐⭐⭐⭐⭐
Comment from : Susan Brown

Hey Mike another great post Lots of great advice on the corrupt Real Estate market, and their schemes to keep the prices too high by lowering Fico scores, down payments, so anyone can get a mortgage The IQ's and Fico scores keep getting lowered to nothingbr Till the house of cards collapse, and it will
Comment from : Leroy

One's credit goes down when one pays off debt In OUR crazy fiat situation, money is CREATED by debt
Comment from : post script

This was all market manipulation to artificially inflate home values to cover the Boomers lack of retirement funding by shifting the burden of their retirement to younger generations
Comment from : little red hen

This could be presented in less time I do enjoy seeing the neighborhood, but would enjoy a more succinct presentation
Comment from : post script

doom so much doom
Comment from : Gabriel

My apartment building requires payment for water, sewage, garbage That is in addition to utilities with the city (So not just the rent)
Comment from : post script

In 3 years I've had to sink 80k into my house But we were prepared for it Owning a house is not for the people who barely make a living
Comment from : Over the hill Dill

Wide streets
Comment from : post script

Nice, attractive neighbor
Comment from : post script

Yes Pay off loan early will ding your credit score
Comment from : Hung Trinh

My goal is to have a 0 credit score one day
Comment from : Robert Squared2

VA has been doing 0 down, thousands a year for decades
Comment from : Jack

everyone is able to afford a home Low income or high income It's all the greed, high interest, etc that make it expensive for people If housing was fair so that anyone with a job could afford a home according to what they earn, there would be no issue Man kind has made it an issue That's why so many homeless people are out there Owning a home should not be equivalent to a brain aneurysm It should be one of life's entitlements for humanity
Comment from : Bevvy Beebe

Thanks for your encouraging words on having no shame in renting I doing exactly as you said and saving over 50 of my paycheck into a money market account and T-Bills
Comment from : Neil White

Cathay bank was offering the 1 program two years ago and it was working wonderfully but with the prices skyrocketing it’s not longer viable Doesn’t matter if it’s 0 dp if you can’t qualify for a mortgage…
Comment from : Dani

These mortgages will make up less than 1 of the total mortgages in the market Everyone calm down
Comment from : Marc Amaral

Yep Mortgage friends are out of the business now
Comment from : Jonathan Hammond

Where I live , 20 is 160 - 200k or more! But I still 100 agree with you I won't buy until I have at least 20 down AND interest rates are lower (because I don't want to pay thousands and thousands in interest in the first 2-3 years of mortgage!)
Comment from : chemicalhalf

I see 131 Kinross on Zillow It was sold for $470k in 1997 and if it sells for $175M today, that breaks down to 52 appreciation per year, not adjusting for inflation
Comment from : Jesse Reinhardt

I think they are trying to set us all up for failure as much as they possibly can That way we will all be easier to control They want us dependent upon them
Comment from : seekthegood

Props to the owner of the ultra-elite “850” credit score My wife’s is usually 835 to 845 I’ve noticed that the quick massive drop of the FICO after paying off a debt is truly shocking but it tends to bounce back up after 60-90 days — with or without another debt created
Comment from : R’illest Talk

Just think of FICO score as a way for banks to size you up on if you're going to make them money Less loans, not paying, takes FICO down More loans, paying on them, FICO goes up High FICO just means you are feeding banks money The best FICO score is really a ZERO score - you aren't using banking at all I know that isn't realistic for everyone; however, it should be the goal of everyone
Comment from : Bean Counter

Who can save with the rent prices going up way too fast?
Comment from : steven shelton

Midwest here We bought our house for $320k and put down $139k, so our loan was for $181k The actual loan itself is 199 for 15 years and it comes out to about $1160/month for principal and interest It is definitely worth putting a big 20+ down payment to help drive down the mortgage cost, especially with these much higher interest rates The only problem is lenders WILL try to get you to only put down 20 (no more than that) because they want a bigger commission Just stay firm that you want to make a higher down payment
Comment from : Jesse Reinhardt

I put about $10,000 down on a $216,000 condo What's the other $1,000 to 1,500 a month in expenses that you were referring to? My condo has a new refrigerator, microwave, dishwasher, stove, and air conditioning unit The HOA pays the water, trash and sewer
Comment from : BREEZYM

Great headline These numbers just plain scare the hell out of me I may never own again, at least not to use as a principal residence The true cost of owning is crazy Listings are popping up like mushrooms here in North Admiral in West Seattle Nothing is selling You warned us The landslide is happening and it will take a while just like 2006-2012 Real estate crashes are a train wreck in slow motion We are there, and people are finally waking up and headed for the exits
Comment from : Tom Morningstar

1 would make sense if you raise it to 20 in the first 2 years Stop paying rent and pay yourself br it's only a problem when prices go down
Comment from : Michael H

Real estate investors losing money is music to my ears They are a major reason why the real estate market is the way that it is now
Comment from : Noura El