Keith Gumbinger
Keith Gumbinger
borrowers budget buy encouraged invest loans money paid people product save stretch value
These loans can be of value for people who want to save or invest the money they would have paid in principal, ... Unfortunately, the way the product has been pitched, borrowers have been encouraged to stretch their budget to buy more house.
borrowers choices expanding include loan means menu niche opportunity
Expanding your menu (as a lender) to include as many loan choices means you get a better opportunity to scour borrowers out of niche markets.
borrowers budgetary cushion extra financial impact manageable safe spending themselves year
Most borrowers have some financial cushion so the impact won't be immediate; spending an extra $380 is manageable at first. But it's safe to say there are some who will find themselves in budgetary difficulties a year or two down the road.
card cause certainly change fall fallen might talk trying whether
It certainly could cause a change to the marketplace, ... But you're trying to talk about whether the 14th card might fall when first one hasn't fallen yet.
fixed insulated longer
The longer the fixed rate, the more insulated you'll be.
less mortgage pay ultimately
If you're making a pre-payment on your mortgage principal, ultimately you'll pay less interest,
baton current expectation greenspan left pick
The current expectation is that he'll pick up the baton where Greenspan left it off.
borrowing costs influence mean stop
Does that mean (consumers will) stop borrowing because it costs them another $5 a month? Probably not. It may influence decisions. I don't think it halts decisions.
brand credit digging equity further home line people shovel themselves
For some people a home equity line of credit is a brand new shovel for digging themselves further into debt.
increased pain point quarter soon start
A quarter point here, a quarter point there, and soon you start to feel the pain of significantly increased monthly payments,
borrow change consumers couple fed might raises rates
There's no way for consumers to borrow more cheaply. But that might change if the Fed raises rates a couple more times.
borrow buyers cash flush home layer markets minimum money mortgage pay possible risk top value
Mortgage markets have been so flush with cash that home buyers are able to layer one risk on top of the other. It's possible to borrow more than the value of the home, put in no money of your own and pay a minimum monthly payment.