Over the last five years, credit scores have been refined to the point where they are now one of the most important factors for lenders. |
People who calculated what they could afford when rates were 5.25 percent have realized their mortgage payments are going to be a lot higher now that rates have gone up, so they're going for interest-only loans. |
Studies show that if you're a credit worthy borrower, you will do everything in your power to keep your credit high. That in itself is skin in the game. |
The attractiveness of this product is flexibility, but that flexibility sometimes can get people in trouble. |
The key issue here is that everybody is afraid of the I-word, and that's inflation. |
The lending industry is doing what it can to get a piece of the shrinking pie. You're going to see more aggressive offers in the coming year. |
The mortgage business is becoming a fashion trend. |
The tasks of listing a home, selling a home, packing up everything you own, and moving is not popular during the winter season. |
There seems to be a sense of urgency, especially among first-time buyers. We're seeing people in their 20s and 30s who have the 'I need to buy a home now' attitude. |
Traditional banker that I am I didn't think there would be much interest in this product. But consumers have loved it. |
We did a million-dollar loan for one gentleman who got four round trip tickets on that loan. |
We love debt in America more so than any other country. |
We've seen a dramatic pickup in these loans since rates starting going up, |
What we found is that, rightly or wrongly, consumers are accepting increasingly-higher levels of debt as a normal state of affairs. This may not be a problem in a low rate environment, but with interest rates on the rise, the time is now for all of us to take a step back and ask ourselves if we're doing all that we should to ensure we make smart borrowing and saving decisions. The good news is, for those of us who need to make changes, there are many simple ways to get started. |