ilmscore | The Housing Market Is Going Insane | $0 DOWN MORTGAGES ARE BACK

The Housing Market Is Going Insane | $0 DOWN MORTGAGES ARE BACK

Published: 2022-09-16
Status: Available | Analyzed

Predictions from this Video

Total: 5
Correct: 0
Incorrect: 0
Pending: 5
Unrated: 0
Prediction
Topic
Status
Offering no money down loans when home prices are at a record high exposes buyers to significant risk if the market declines, they lose their job, or their income reduces, making it difficult to sell their home.
"the biggest risk that I see in all of this is that by offering a no money down loan during the same time the prices are near a record high is going to expose a buyer to a lot of risk in the event the market goes down they lose their job or they see a reduction of income and have to sell their home"
Homebuyer Risk
Pending
Banks offering no money down loans likely pass on extra costs to borrowers, as they are in the business of making profits and flipping loans.
"banks are in the business of making money and when loans are usually flipped to a third party for a profit most likely that extra cost is being passed on somewhere in your loan"
Bank Profitability
Pending
Homeownership entails responsibility for ongoing costs like property taxes, insurance, maintenance, and unexpected repairs.
"by owning a home you're responsible for property taxes Insurance maintenance repairs and a variety of other random expenses that you never even think about until something breaks"
Homeownership Costs
Pending
The new no money down loan programs are unlikely to significantly impact the overall real estate market, with eligibility likely limited to specific neighborhoods.
"no this is likely not going to have a dramatic effect on the entire market and only certain neighborhoods would even qualify"
Market Impact of No Money Down Loans
Pending
A significant risk exists for buyers who may be unable to sell their homes if the amount owed on the mortgage exceeds the sale price after accounting for closing costs.
"there is a risk to buyers who would be unable to sell their home if they owe more money than they could get after closing costs"
Buyer Risk in Real Estate
Pending