What do you guys think of this new "stimulus" package that looks like it's going to get pushed through? I'm not convinced it's the most effective solution for our economy right now, but I'm no economics major.

Deal reached on tax rebates for stimulus

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Michael Krotchie - REALTOR® - Coldwell Banker Residential Brokerage, NRT LLC
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I think they should reduce the rates on Jumbo loans which would spur a whole slew of investing by people who have money but don't want to be shafted with high rates. I did not say give jumbos to people who cannot afford them.

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Tax Rebate is to slow, will not have any affect in time, and likely would only stimulate small purchases which are mostly import items anyway.

I think doing something about the jumbo loan penalty which I have written about before would be a great thing to do, and I have been told I am stupid and greedy for suggesting it by many people who are not in Northern New Jersey where your average 3 bedroom 2 bath single family home in many towns is over 500K. God forbid you have a big enough family that you need a 4 bedroom.

I know the Rate Cut was a big one, but it may not have been big enough, I have heard several respected economists advocating that the Fed should decide where they think interest rates need to end up and just do one big cut to that level. I kind of agree with that thinking since rate cuts take 6 months to a year to even start affecting the economy (so they say).

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I need to read more about the stimulus package, but I know there is an additional fee that conventional loans are going to get hit by that doesn't sound too good. If you know more about the conventional loan package rate hike, I'd love to hear more.

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Joe-

do you mean this?

http://www.bankrate.com/brm/news/mor...changes_a1.asp

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Michael Paul

Eau Claire Homes for sale | Eau Claire Real Estate | Discount Realty Works

Yes, thanks! This part specifically..
hmmm.. I know ALL first time home buyers have 30% laying around to put as a down payment. looks like the american dream just keeps become more and more exclusive.. pretty soon it'll be the american born with a silver spoon in their mouth dream.

sad.

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Mike-

That is an interesting idea, but I don't think it will happen if only because it would not be politically expedient. The media would frame it as just another "Bush tax cut/subsidy for the rich." Poor and Middle class would get nothing, so unfair, etc.

I realize that home values on the coasts can necessitate these types of loans...but here in the midwest, $417k can buy a lakefront palace. Average prices in my town are around $160k.

I only mention this because it would make "tax cut/subsidy for the rich" rhetoric work here.

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Michael Paul

Eau Claire Homes for sale | Eau Claire Real Estate | Discount Realty Works

But I think the new fees only apply if your credit score is under 680?

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Michael Paul

Eau Claire Homes for sale | Eau Claire Real Estate | Discount Realty Works

Think I will buy some coins. Sorry a man has to have something else to do besides sell houses.

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Where does this money come from? Do we borrow more money from my great grandkids to stimulate the economy?

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