previous bread: >40% of young home owners were gifted money for down payments on their homes from their parents
their parents use HELOC loans to pay for it and then the kids take out a HELOC loan to pay back their parents
Helocs have become insanely common in the last 3 years and regulations have become insanely lax
There are MBS tranches composed entirely of helocs surely nothing bad is coming
Oh oh did you know that a lot of these boomers got their HELOCS at 3% Now HELOCS rates are 6.6% Oh did you know that HELOCS are adjustable
surely this isn't a hidden crisis
Boomers are pulling out HELOCS left and right to finance their rental buying sprees
so imagine this
you have a 700k house you decide to pull out a 200k HELOC loan at 3% (now 6%) to pay your down payment on your rental
so now you have a 400k mortgage on a rental at 5.5% rate since boomers love adjustable rates a 200k HELOC loan
and guess what boomers will pull the equity from their rentals to get another heloc and repeat the process and this has been happening at an insane rate for the last 3 years and the boomers are just getting started
Any Forums Is now aware that a global financial apocalypse is at our doorstep and the boomers caused it AGAIN
HELOC is home equity line of credit? Won't fare well if prices begin to drop
Blake Gutierrez
2 more weeks
Dominic Campbell
...
Bentley Young
You didn't even add the youth-bloodsucking apparati that are Social Security and Medicare
This could end up with hundreds of millions of people dead, and all because people I guess wanted to ignore reality. I guess they can ignore reality, but nobody can ignore the consequences of ignoring reality
Justin Cox
So, HELOC is like a 2nd mortgage? I suppose you have to pay off your house first in order to qualify, am I correct? CAPTCHA: GK0NY
Landon Rogers
Heloc are junior to purchase money mortgages. All of them will get extinguished upon foreclosure (for the most part). Banks are going to get raked with principal dropping and not being able to recoup the insane amount they loaned out.
Joseph Foster
Said this in last thread.
Do not use HELOCs, use Home Equity Loans. Fixed rate, allow you to access cheap credit during an inflationary period.
Home prices are absurd right now, this is a way to capitalize before they go down, without the variable rate risk.
Asher Garcia
Yes, it is usually called a second mortgage. No you can get a mortgage on an already mortgaged property. Just have to pay each one off. In event of default the more senior mortgage gets paid off first in event of foreclosure, junior gets extinguished.
Benjamin Smith
Helocs are lines of credit based off your equity You can use helocs for anything >paying business expenses >buying rentals >paying for your kids college >using as a downpayment on your kids first house
its pretty much means 2008 but for every single market The rates are adjustable and the rate has shot up 3% in the last 2 months
>freelance photographer >behind on tax returns These fucks are so disconnected from reality it's laughable
Jayden Wilson
Dont worry its at your expense user
Leo Davis
I knew a young guy making well over $100K a year tax free and when he moved back to Maryland to take a job at the NSA at Ft. Meade his parents still had to give him money so he could buy a house near Ft. Meade in a white neighborhood.
I've wondered if we're going to hit some kind of 1929 situation due to all the low margin/PAL loans that have been taken out.
Angel Evans
He was probably addicted to drugs if he couldn’t afford a house with 100k income
Henry Hill
Funny thing is the NSA is the most corrupt organization in the US and they are the only ones who have an entire division that monitors this forum.
Luis Moore
>take out $300k HELOC @ 4% to buy rental property >$1000/mo in interest only payments during draw period, never pay down the principle >interest rates bump to 6% >$1500/mo in interest only payments, +50% monthly expenses. Still not paying any principle >5 years later, draw period ends at 6% interest or higher >$2500/mo in minimum payments, 2.5x higher than your original payments I hope everyone that did this gets fucked
Jaxon Richardson
Could you imagine leveraging where you sleep at night? I seem to remember so many boomers telling me when I was younger "you don't shit in your own backyard"... well?
Brayden Edwards
Contract network security analysts make $200K at NSA is all I know. Just a few years of experience or bachelor of science required. IF you have the security clearance.
Oh also shortly after he joined NSA he went into crypto currency mining (most crypto currency mining is just breaking encryption for the NSA) and he was a 100% believer in the Trump Russia conspiracy thing.
Parker Jones
So am I gonna be able to by a 2nd house or what
Brandon Gonzalez
Why is the quality so shit
Eli Morris
Yes
Robert Morales
>The rates are adjustable How much of a fucking cattle do you have to be to accept adjustable rate loans after 2008?
Lucas Diaz
>and the boomers caused it AGAIN And there is the narrative they want you to buy
Juan Robinson
are you on a phone?
Jackson Watson
I just wanted to find a good woman to love and make a life with her. Lol like why the fuck is that so difficult.
Close but too many words. Either increase the number of words to play off the leftist wall of text meme or make it more concise. That's an order, btw -t. King and CEO of 4th Channel, the hacker known as Channel 4 News
Elijah Harris
>boomers user i cant make it any easier.....
Jackson Harris
In Canada they are starting to run articles saying the housing market is expecting a 10-20% correction. If they are forewarning about this shit then it’s probably because it way fucking worse.
Adrian Thompson
it won’t but they’re pretty uncommon and OP is a faggot. Everyone was doing cash out refinance rather than heloc because the rates were so low
