Subprime mortgages are back!
Rebranded as "non-prime loans". Hold tight folks, we all know how this is going to end. https://www.cnbc.com/2018/04/12/sub-prime-mortgages-morph-into-non-prime-loans-and-demand-soars.html
Even the big banks are doing this. Banks letting young bay area house hunters qualify for more based on impending RSU income and bid everything up.
Marx identified several major causes of crises of capitalism: (i) the tendency of the rate of profit to fall, (ii) the concentration of capital, (iii) the growth of the proletariat; given the falling rate of profit, an historic crisis may be manifested as (iv) a crisis of realisation (underconsumption); Lenin added to these (v) war and revolution (imperialism), and in the post World War Two period, by extension of Marx’s analysis of the cyclical crisis of capitalism, we should add (vi) a catastrophic collapse of credit.
Historians identified one single cause why communism might be an even worse idea: over one hundred million souls who perished in the name of the most evil ideology on the face of the Earth.
If you starve in a communist country it's communism's fault. If you starve in a capitalist country it's because of naughty ghosts
I love how provincial Blind is. 3 of 6 responses on a macro-economic topic are BA-centric.
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I got 1.2m$ pre-qual based on my 180k base salary alone ( I did not provide RSU and bonus data ). So according to Wells Fargo Someone with 180k TC can buy a 1.5m$ home. Many are already stretching themselves. Places like Livermore are selling SFHs for >1m$
Did you show them a 200k down payment? That’s another wild variable. Their mortgage broker tells me to add 20-30k more cash to the down payment to qualify for a larger amount!
Yes I had the downpayment (20%), still 1.2m loan on 180k salary seems ridiculous
Lender at an open house I went to was willing to lend/leverage off of RSU comp!!!
Bay area lender. FANG game on point.