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What will .75% do to you?

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Lost_in_the_HTTP said:
Opinion time.

What do you feel would be a fair interest rate? Banks, like all other businesses are there to make a profit, but they should be able to do so without robbing us. Is 1% on a mortgage fair to them? Is 10% on a mortgage (like many of us paid years ago) fair to us?

Is the .1% we're getting on savings fair to us? Or is 1% fair?

What would you consider a fair difference between loan and savings rates?

If they pay us 1% on savings, what should they be getting on loans? 2%? 5%?

And yeah, I know the question is simplistic and there are a number of other factors.
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about 3.50
 
Ain't a whole heap'o'interest, but it beats some other places.

As of 07/21/22, the Citi Accelerate Savings account variable rate increased to 1.40% Annual Percentage Yield¹ (APY). Feel confident knowing that you are earning 17X the national average² on your savings.
 
brianmanahan said:
about 3.50
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southpark-girl-scout.gif
 
Checking at another bank is paying .1% and for some reason I have most of my funds there. Not really sure why, laziness I guess, but I went ahead and moved some to this one. Might move more by the end of the year if this next .75 hike goes through.
 
I never paid enough attention but I THINK my credit line interest went up a bit to compensate. I have a bit under 10k on it now so in the grand scheme of things it's not much difference dollar wise. Any extra money I have just goes towards it either way. Mortgage will probably see an increase in a couple years when it opens but I'm down to 51k or so on that, so probably be around 30-40k by that point. Once credit line is paid off I want to increase my mortgage payment again but probably wont be able to go back to what I was paying years ago. I had to lower it to give me breathing room since inflation is eating up most of my pay cheque.
 
The loan I mentioned before has been paid off.

As of 08/30/22, the Citi Accelerate Savings account variable rate increased to 2.00% Annual Percentage Yield¹ (APY). Feel confident knowing that you are earning 20X the national average² on your savings.
 
I have not really noticed anything different myself so far. The inflation hurts way more than the higher interest rate. Interest only applies to credit, inflation applies to everything.
 
As of 09/27/22, the Citi Accelerate Savings account variable rate increased to 2.20% Annual Percentage Yield¹ (APY). Feel confident knowing that you are earning 20X the national average² on your savings.


It ain't great, but it's better than most others that are still under .50.
 
blackangst1 said:
On a $350k mortgage, $10k down, 5.25%, 30 year fixed = 2489/mo
at 4.5% = 2334/mo
335897 vs 280183 over life in interest.
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That's exactly why home prices used to be LOWER.

My advice is to buy less of a house, use sweat equity, and side hustles to pay it off faster. Do the math and potentially refi later if the conditions improve enough. If you enter any kind of mortgage agreement, don't complain when rates or home values change. You have to be prepared to take a loss if you aren't staying 30 years.... it's pretty obvious that a lot can change quickly.
 
5% mortgages make me chuckle. My first mortgage was something like 13% conventional but I fell like I was stylin' when I got approved for a 10% VA. House was $13,000 (no typo) and payments were around $300/mo. as I recall.

Second house I bought was around 6 or 7% give or take a bit. That house was $40K, but I don't remember the payments.
 
At least when double digit mortgage rates were the norm, houses were also like under 100k so it was not as bad. My parents paid like 85k to get their house built in 1986. The same house today would probably cost like half a million to build. 😱 I would take high loan interest rates and lower cost of living over what the hell inflation insanity is going on these days.
 
Lost_in_the_HTTP said:
5% mortgages make me chuckle. My first mortgage was something like 13% conventional but I fell like I was stylin' when I got approved for a 10% VA. House was $13,000 (no typo) and payments were around $300/mo. as I recall.

Second house I bought was around 6 or 7% give or take a bit. That house was $40K, but I don't remember the payments.
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I bought my first house in 2004 I think. The rate was 6.25% and I did a 5/1 ARM @ 5%....5 years later, I got another house @ 4.25% for 15 years, then refinanced 3 years later, after locking in 2.49%. My interest rate is going to be locked at 0% very soon.

Yeah....the 80's were when interest rates were high and home values were low. This is kind of like how property taxes and home values play together. All that stuff has to be realigned and reassessed to determine what's reasonable.
 
Lost_in_the_HTTP said:
As of 09/27/22, the Citi Accelerate Savings account variable rate increased to 2.20% Annual Percentage Yield¹ (APY). Feel confident knowing that you are earning 20X the national average² on your savings.


It ain't great, but it's better than most others that are still under .50.
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Just going to stick with my Capital One account: 2.15% as of today for savings. Citibank's rates seem okay, until you realize you need a checking account as part of the package, which then comes with some hoops through to avoid fees.
 
House and cars are paid, we have a business that is paid off. No other "debt" except $24,000 two year we took out for kitchen cabinets, and we only did that because it was zero interest. But it's not like that money is earning anything in a savings account. We pay our credit cards in full every month.
 
Lost_in_the_HTTP said:
That money COULD be earning 4% or better.

I'm making it a point of dumping close to half my income into high yield savings accounts next year.
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Every extra penny I have is going into my high yield right now while maxing my 401k. I'll probably try to max my roth IRA also but I usually fund it after the new year before filing taxes
 
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