Can I use rental property income as proof of income for a mortgage?

[Taxing Matters]

Some of us are old enough to remember the savings and loan crisis of the 1980s.

Savings and loan crisis - Wikipedia

The only thing we learn from history is that we don't learn anything from history.

I do remember that crisis from the 1980s and it was one of the economic troubles I had in mind when writing my post. Schools don't emphasize economic history enough. I remember that in high school and college American history courses barely any mention of the various panics (which what these kinds crises were called before the great depression) and very little of the recessions that followed (a term that ended up replacing panic). Only the great depression gets much mention, and that's only because of the sesmic political change that resulted from it. The politics of it get more focus than the actual economic causes. Economics are incredibly important, yet most seem to shove it aside like an old unwanted car. Everyone wants to believe that we finally have become smart enough to overcome the economic cycle of boom and bust. I'd like to think that to really be the case, too. But after seeing it happen again and again I know better than to fall into that trap. Weve become better at managing the worst of those cycles, but I don't think they'll ever go away entirely.

 

[quincy]

... Schools don't emphasize economic history enough. I remember that in high school and college American history courses barely any mention of the various panics (which what these kinds crises were called before the great depression) and very little of the recessions that followed (a term that ended up replacing panic). Only the great depression gets much mention, and that's only because of the sesmic political change that resulted from it. The politics of it get more focus than the actual economic causes. Economics are incredibly important, yet most seem to shove it aside like an old unwanted car. Everyone wants to believe that we finally have become smart enough to overcome the economic cycle of boom and bust. I'd like to think that to really be the case, too. But after seeing it happen again and again I know better than to fall into that trap. Weve become better at managing the worst of those cycles, but I don't think they'll ever go away entirely.

Teachers don’t have the time to cover everything - or time to cover anything in any depth.

 

[Taxing Matters]

Teachers don’t have the time to cover everything - or time to cover anything in any depth.

I get that, but what I see public schools offering today, it makes me shake my head. The history courses are slimmed down and often optional beyond a very simple American history introduction. I know kids find history "boring" and they (and their parents) don't see much value in it. Instead those parents and students demand more courses in things I would consider optional for high school. Putting resources into offering the full menu of these optional offerings leaves less for a very solid grasp of what I would consider essential for everyone to know. The parents and students are by and large getting the offerings they want. By that measure the schools are doing a good job. But at least where I am I don't see schools pushing back to retain more of the basics or educating families of the importance of those "boring" basics. My age likely has something to do with it. When I compare what was taught when I was in school and was is taught now, it's a huge change. Naturally schools need to keep up with advances in society, technology, etc. I think, however, there is a case to be made for making sure some of the traditional basics are still emphasized.

 

[quincy]

I get that, but what I see public schools offering today, it makes me shake my head. The history courses are slimmed down and often optional beyond a very simple American history introduction. I know kids find history "boring" and they (and their parents) don't see much value in it. Instead those parents and students demand more courses in things I would consider optional for high school. Putting resources into offering the full menu of these optional offerings leaves less for a very solid grasp of what I would consider essential for everyone to know. The parents and students are by and large getting the offerings they want. By that measure the schools are doing a good job. But at least where I am I don't see schools pushing back to retain more of the basics or educating families of the importance of those "boring" basics. My age likely has something to do with it. When I compare what was taught when I was in school and was is taught now, it's a huge change. Naturally schools need to keep up with advances in society, technology, etc. I think, however, there is a case to be made for making sure some of the traditional basics are still emphasized.

When you have prize-winning literature and history books and science books and math books being banned from classrooms or burned in bonfires, and teachers being fired for trying to educate students in “traditional basics,” trying to sneak in lessons on economic history seems beyond wishful thinking.

I do understand what you are saying, though. Schools have changed and priorities have shifted. What hasn’t changed much are the hours in a school day and the time available that can be devoted to study.

 

[Bali Hai Again]

I do remember that crisis from the 1980s and it was one of the economic troubles I had in mind when writing my post. Schools don't emphasize economic history enough. I remember that in high school and college American history courses barely any mention of the various panics (which what these kinds crises were called before the great depression) and very little of the recessions that followed (a term that ended up replacing panic). Only the great depression gets much mention, and that's only because of the sesmic political change that resulted from it. The politics of it get more focus than the actual economic causes. Economics are incredibly important, yet most seem to shove it aside like an old unwanted car. Everyone wants to believe that we finally have become smart enough to overcome the economic cycle of boom and bust. I'd like to think that to really be the case, too. But after seeing it happen again and again I know better than to fall into that trap. Weve become better at managing the worst of those cycles, but I don't think they'll ever go away entirely.

Whether the current economic trouble is called a crisis, a panic, a recession, a cycle or a perturbation, it boils down to if you are a lender “good for you” if you are a borrower “sucks to be you”. I’ve been on the borrowing side of all those cycles except the Great Depression of course. Now I’m on the lending side and will ride this wave for as long as it lasts. A 7 month CD at 7% APY ain’t bad while the borrower is paying 7.5%+ for a 30 year mortgage.

 

[quincy]

... it boils down to if you are a lender “good for you” if you are a borrower “sucks to be you”...

It wasn’t so good for Silicon Valley Bank, Signature Bank or First Republic.

 

[Bali Hai Again]

It wasn’t so good for Silicon Valley Bank, Signature Bank or First Republic.

It’s debatable whether more regulation would have prevented that. Regulations are put into place to prevent idiot management from taking on unacceptable risk with other people’s money just as padlocks are there to keep honest people honest. Devious people will always find a way around both. And they both belong in jail.

 

[quincy]

It’s debatable whether more regulation would have prevented that. Regulations are put into place to prevent idiot management from taking on unacceptable risk with other people’s money just as padlocks are there to keep honest people honest. Devious people will always find a way around both. And they both belong in jail.

Financial experts - of which I am not one - have placed much of the blame for the bank failures on the lifting of the regulations by the Trump administration. The regulations were in place to prevent exactly what happened. So I think there were plenty of idiots, including bank management.

 

[Bali Hai Again]

Financial experts - of which I am not one - have placed much of the blame for the bank failures on the lifting of the regulations by the Trump administration. The regulations were in place to prevent exactly what happened. So I think there were plenty of idiots, including bank management.

Are you referring to the next POTUS as an idiot? I’m wondering if his being president once for one term will prevent two terms this time?

 

[quincy]

Are you referring to the next POTUS as an idiot? I’m wondering if his being president once for one term will prevent two terms this time?

No. I think Biden will be elected to serve a second term as president. I predict that the previous president (and many who served the previous president) will be in prison.

 

[Taxing Matters]

Are you referring to the next POTUS as an idiot?

I think Trump's dream of recapturing the White House is just that: a dream. He wants to get back into office with the idea that he can extracate himself from all the criminal legal proceedings against him. His loyal followers will vote for him as they did in 2020, assuming he does get the Republican nomination, which isn't a sure bet. But as 2020 showed his loyal followers are not enough to carry the day. He needs some support from those who are not ardent followers and I suspect he has even fewer of those today than he had in 2020. Particularly now that he has admitted it was his idea to try to over turn the 2020 election. That clearly says he does not value democracy and wanted to rule Putin style. Not surprising given that Putin is his hero. He suffers, however, from a lack of the kind of shrewdness that Putin exhibited for much of his time as the Russian president.

 

[adjusterjack]

A 7 month CD at 7% APY ain’t bad

Where are you getting a 7% CD?

Name the bank and I'll go buy one.

I'm getting 5.5% tops from many banks.

 

[quincy]

Where are you getting a 7% CD?

Name the bank and I'll go buy one.

I'm getting 5.5% tops from many banks.

Alpena Alcona Area Credit Union pays 7.19% on its 7-month CD - but you need a solid connection with Michigan to get it.

 

[Bali Hai Again]

Where are you getting a 7% CD?

Name the bank and I'll go buy one.

I'm getting 5.5% tops from many banks.

It’s a promotional offered by my local credit union at the end of April expired June 30. The caveat is that it’s variable, no higher than 7% and no lower than 5%. So far it’s remained at 7% and I expect it to remain there until the end of the year when they mature. They just offered the same promo on Sept.1st. Here I was scouring the online banks back in the spring for he best rates and the best rate appeared right under my nose!

 

[Bali Hai Again]

Alpena Alcona Area Credit Union pays 7.19% on its 7-month CD - but you need a solid connection with Michigan to get it.

Same with my credit union.