Bank credit downgrade could affect residental lending

The economic downturn means banks have been downgraded. It’s over due, but it will affect lending in the residential mortgage market. There has been some talk of sub-prime or similar lending coming back, but I”m sure these downgrades will affect any future plans.

Why the credit downgrades will make banks riskier

By Stephen Gandel, senior editorJune 22, 2012: 12:27 PM ET

Fortune — There’s plenty of irony in the Moody’s downgrade of big U.S. banks. But here’s the biggest one: The lower ratings, which acknowledge that banks aren’t as safe as we thought they were, might actually make the banks riskier.

In one sense, the downgrades will do something that regulations have yet to accomplish. They’ll limit the banks’ ability to gamble their own money. The banks will have to hold more of their cash as collateral, meaning they won’t be able to give as much of it to London whales. It will also make it harder for banks to use the type of short-term financing that contributed to the bankruptcies of Lehman Brothers and MF Global

Tustin Overview

Proprietary OC Housing News home purchase analysis

16605 MOSSCREEK St Tustin, CA 92782

$715,000 …….. Asking Price
$916,500 ………. Purchase Price
8/23/2006 ………. Purchase Date

($201,500) ………. Gross Gain (Loss)
($73,320) ………… Commissions and Costs at 8%
============================================
($274,820) ………. Net Gain (Loss)
============================================
-22.0% ………. Gross Percent Change
-30.0% ………. Net Percent Change
-4.1% ………… Annual Appreciation

Cost of Home Ownership
——————————————————————————
$715,000 …….. Asking Price
$143,000 ………… 20% Down Conventional
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$572,000 …….. Mortgage
$163,498 ………. Income Requirement

$2,665 ………… Monthly Mortgage Payment
$620 ………… Property Tax at 1.04%
$600 ………… Mello Roos & Special Taxes
$179 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$160 ………… Homeowners Association Fees
============================================
$4,224 ………. Monthly Cash Outlays

($608) ………. Tax Savings
($854) ………. Equity Hidden in Payment
$183 ………….. Lost Income to Down Payment
$109 ………….. Maintenance and Replacement Reserves
============================================
$3,054 ………. Monthly Cost of Ownership

Cash Acquisition Demands
——————————————————————————
$8,650 ………… Furnishing and Move In at 1% + $1,500
$8,650 ………… Closing Costs at 1% + $1,500
$5,720 ………… Interest Points
$143,000 ………… Down Payment
============================================
$166,020 ………. Total Cash Costs
$46,800 ………. Emergency Cash Reserves
============================================
$212,820 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..

We're sorry, but it seems that we're having some problems loading MLS # L39137 from our database. Please check back soon.

	$925,000 16602 Bayberry Rd		0.12 miles 5 bd / 4 ba 2,872 Sq. Ft.
	$710,000 1305 SUN DIAL Dr		0.36 miles 4 bd / 3.5 ba 2,326 Sq. Ft.
	$999,800 71 FESTIVO		0.37 miles 5 bd / 3 ba 2,616 Sq. Ft.
	$960,000 7 PIENZA		0.38 miles 5 bd / 2.75 ba 2,750 Sq. Ft.
	$624,500 3972 BANYAN St		0.96 miles 4 bd / 2.75 ba 2,210 Sq. Ft.
	$809,000 14 PARTRIDGE		1.07 miles 4 bd / 3 ba 2,200 Sq. Ft.
	$823,000 32 BELCANTO		1.16 miles 4 bd / 2.5 ba 2,340 Sq. Ft.
	$839,000 12 MONTELEGRO		1.24 miles 4 bd / 2.5 ba 2,350 Sq. Ft.
	$864,800 10 ANDALUCIA		1.34 miles 4 bd / 2.5 ba 2,450 Sq. Ft.
	$779,900 18 SUNSET Riv		1.36 miles 4 bd / 3.5 ba 2,580 Sq. F

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