Will a half point bother you?

[Brovane]

next crash will bring it back down to what... 450K? lol.

In my area near Irvine, CA. We had pre 2008 crash houses that went for around $750k going for around $550k. We knew some people that had bought at the top of the market who just decided it was better financially to walk away.

 

[hal2kilo]

I just got in a house at 3.9%, before the rates started to really take off. Is that why they call it a mort-gage?

I forgot to mention that I put 100 grand in when I refinanced. Payments actually started out at less than $700 a month including taxes and insurance but taxes and insurance rates in the last 2 years have brought it up to now to less than $800 a month. School levy got shot down unfortunately, so it should go back down a little next year. I need to go insurance shopping also.

 

[Lost_in_the_HTTP]

If you are talking about the zero interest loans for a cash promotion on credit cards, doesn't your bank charge a hefty up front fee for those? Bank of America certainly does-and they also charge credit card rate interest on any purchases on that card during the so-called free payment period.

BOA Sucks. No one should ever use them.

This is the one I just got:

Chase Freedom Flex Credit Card | Chase.com

With the Chase Freedom Flex(R) Credit Card, earn 5% cash back in bonus categories each quarter you activate, 5% cash back on travel purchased through Chase Travel(SM), 3% cash back on dining at restaurants, 3% cash back on drugstore purchases, and 1% cash back on all other purchases.

creditcards.chase.com

This is the one I got a couple of months back:

Citi Custom Cash Credit Card - Earn 5% Cash Back | Citi.com

With the Citi Custom CashSM Card, earn 5% cash back rewards on your highest monthly spend category in each billing cycle, and 1% on everything else.

www.citi.com

I made an $800 purchase on that one the day after I got it in the mail. The $200 bonus showed up in a couple of weeks and I used that to pay down the balance. Until next June (or so), all of my purchases are 0% interest.

 

[nakedfrog]

I'm shocked at this inflation. No, not really. Once I heard about free money being mailed to me by the IRS we all knew this was gonna happen on the back side.

But lets keep giving out free money... That'll make it all better.

Now do the pie-in-the-face bit, clown!

 

[A///]

I got lucky with a 2.25 for 30 on a house that kept getting its price knocked down. It needed a lot of exterior work and grounds work. It looked daunting but it was easily done in segments. I'll either be dead by the time the 30 rolls up with the way I eat or I'll sell for higher.

I do most repairs and upkeep myself unless it's out of my comfort zone, like electrical, so I don't fry myself like a human bologna. My single most expensive purchase insofar has been house paint for the interior and exterior. I bought it at the peak of housing material crisis and I paid dearly for something that sold 1/3 the value I bought it at at at any other time.

I still need to do a serious overhaul of the top soil. That's going to be a serious endeavor for me.

 

[fleshconsumed]

I'm shocked at this inflation. No, not really. Once I heard about free money being mailed to me by the IRS we all knew this was gonna happen on the back side.

But lets keep giving out free money... That'll make it all better.

Yeah... that one time $1400 check (or whatever it was) is the real reason why average house price is up $100,000... Living it large...

 

[purbeast0]

I refinanced last year. We went from a 30yr @ 3.625% or so to 15yr @ 1.625%.

I cut 7 years off of our original loan (owed for 22 years still) and our payment is like $50 more with the new loan.

I don't really think I'll be worrying about the rates any time soon. No other debt to my name and pay off CC's every time I get paid and am constantly opening/closing cards to get sign on bonuses. We will be getting a new (to us) car in the not too distant future but will put a lot down on it and finance the rest but I don't think it will be big enough to really make a dent. Plus my credit is good and I'm not really worried about a high interest rate on a car.

 

[ivwshane]

I really hope none of you who plan on living in your home long term are refinancing with a lower interest rate and doing a new 30 years every time because that’s just wasteful.

 

[Muse]

Not at all, but the stock market tanking is.

 

[Thump553]

I really hope none of you who plan on living in your home long term are refinancing with a lower interest rate and doing a new 30 years every time because that’s just wasteful.

Absolutely true but that is the American way. I couldn't tell you the number of times I've seen people refinance to do things like being able to buy a new BMW versus a used econobox. It is engrained that being a big consumer makes you a patriotic American.

 

[nakedfrog]

Yeah... that one time $1400 check (or whatever it was) is the real reason why average house price is up $100,000... Living it large...

Also handily explains why it's happening in countries other than the US.

 

[Pens1566]

Also handily explains why it's happening in countries other than the US.

Yeah, everyone bitching about it conveniently leaves out the fact that it's happening everywhere.

 

[ivwshane]

Yeah, everyone bitching about it conveniently leaves out the fact that it's happening everywhere.

Conveniently? No it’s deliberate and it’s because they are dishonest.

 

[repoman0]

I really hope none of you who plan on living in your home long term are refinancing with a lower interest rate and doing a new 30 years every time because that’s just wasteful.

Not really. A 30 year at 2.xx% is the closest a normal person can get to free money. The ultra rich get super low interest loans to avoid selling assets and paying taxes so why shouldn’t normal people do it to have the capability to save and invest more? Granted most people wouldn’t actually save the difference but if they did then they should take the money every time.

 

[Pens1566]

Conveniently? No it’s deliberate and it’s because they are dishonest.

Oh, I know.

 

[A///]

Plenty of people with high income, more than most of us can imagine, who'll hold onto silly debt like $80K and pay just above the minimum because the locked in rate is so dang low. For them it's better to spend money on their investments which offer a greater return than closing out their loan just to see a nice zero there.

I'll sell my place if I can get 40% above what I got it for, which will be easy due to location and what the house is like now vs when I bought it. Thankfully the roof is relatively new. I wasn't concentrated on visuals. The internal health of the house mattered to me more. Plumbing, frame condition, drainage, attic, roof, them big ticket items that can cause you financial ruin.

But Stacey and Ben just want a pretty house that's sick as a flea bitten dog and will pay 1M for it and find out a few short years later they're way in over their pretty little heads with debt to fix their sick house.

 

[ivwshane]

Not really. A 30 year at 2.xx% is the closest a normal person can get to free money. The ultra rich get super low interest loans to avoid selling assets and paying taxes so why shouldn’t normal people do it to have the capability to save and invest more? Granted most people wouldn’t actually save the difference but if they did then they should take the money every time.

Because if you are refinancing you should be looking to reduce your rate AND term. A lowered rate with a new longer term doesn’t usually translate into savings in the long run.

 

[repoman0]

Because if you are refinancing you should be looking to reduce your rate AND term. A lowered rate with a new longer term doesn’t usually translate into savings in the long run.

I mean … mathematically it does translate into savings if you’re disciplined. Monthly payment goes way down, so the extra can go into investments. SPY averages 6% over the long term. I-bonds pay nearly 10% right now. Maximizing money into interest paying assets is how people should be looking to build long term wealth and one way to do that is reduce outgoing cash with a basically free six figure 2.xx% loan.

Notice I said “should” because I know very well many people would see their payment cut in half and rather than be disciplined about it … spend the extra on nonsense.

 

[Thump553]

Because if you are refinancing you should be looking to reduce your rate AND term. A lowered rate with a new longer term doesn’t usually translate into savings in the long run.

If you have any financial discipline I always suggest getting the longest term that makes financial sense (usually a 30 yr loan) and make manual prepayments every month. That way if you have a financial emergency or job loss you can temporarily forgo the prepayments. Ditto if you see an excellent investment opportunity and what to invest in that for a while versus prepaying current debt. With a 15 yr loan (or shorter) you are locked into the higher monthly payments no matter what. You will (most likely) have a slightly higher rate/terms on a 30 versus a 15 but I think the extra cost is worth it for increased opportunity/peace of mind.

 

[NWRMidnight]

Not at all, but the stock market tanking is.

What did you expect to happen to the stock market after it was artificially inflated with Billions of dollars injected by the feds since 2019 that they have stopped doing?

 

[Fenixgoon]

If you have any financial discipline I always suggest getting the longest term that makes financial sense (usually a 30 yr loan) and make manual prepayments every month. That way if you have a financial emergency or job loss you can temporarily forgo the prepayments. Ditto if you see an excellent investment opportunity and what to invest in that for a while versus prepaying current debt. With a 15 yr loan (or shorter) you are locked into the higher monthly payments no matter what. You will (most likely) have a slightly higher rate/terms on a 30 versus a 15 but I think the extra cost is worth it for increased opportunity/peace of mind.

fortunately there's this wonderful thing called math that provides an objective comparison of the two.

 

[Muse]

What did you expect to happen to the stock market after it was artificially inflated with Billions of dollars injected by the feds since 2019 that they have stopped doing?

I try to have no expectations for anything, stock market included. I have my buy and sell rules and try to stick with them. I figure I'm likely to have a sell signal in a week or two but will wait for it. If I don't get it, I will hang on. Meantime I figure I should set up savings account(s) to park my money. With the .5 basis point interest rate hike, APR return should be going up.

 

[A///]

I try to have no expectations for anything, stock market included. I have my buy and sell rules and try to stick with them. I figure I'm likely to have a sell signal in a week or two but will wait for it. If I don't get it, I will hang on. Meantime I figure I should set up savings account(s) to park my money. With the .5 basis point interest rate hike, APR return should be going up.

Mine is buy cheap and hold. Reactive trading is worse than listening to the "gurus" on youtube who look like the next serial whatever.

 

[Muse]

Mine is buy cheap and hold. Reactive trading is worse than listening to the "gurus" on youtube who look like the next serial whatever.

That does work. It's what Warren Buffett recommends for most investors. Myself, I will get out when the market sours and wait until it sweetens to reenter.

 

[A///]

That does work. It's what Warren Buffett recommends for most investors. Myself, I will get out when the market sours and wait until it sweetens to reenter.

This is what I did in 06 with the housing loan crisis in front of me. Sold what I had and paid down my debts at the time. When the economy did tumble, I began buying up investments on the cheap. I'll check on my portfolio once every other month. It's not something I'll put man hours into.