Mortgage Rates.......

[The_Tick]

The dudes that I follow on Twitter and TikTok are saying that we could be between 7.5 and 10% by the end of the year. Only way to curb inflation is what I am reading. (I am not a financial guy.)

[Jeff Lebowski]

The dudes that I follow on Twitter and TikTok are saying that we could be between 7.5 and 10% by the end of the year. Only way to curb inflation is what I am reading. (I am not a financial guy.)

My first mortgage was 10.5%. 1992.

[Donuthole]

My first mortgage was 10.5%. 1992.

I remember my parents having trouble selling our Riverdale, UT home when we moved to Arizona for my dad's job in 87. (I was 6, but I still remember the stressful vibes from the time). They ended up renting out the house and instead of buying a house in AZ, we lived in an apartment for the two years we were there, because they were taking a monthly loss on the house. They eventually short sold it at a loss and it wrecked their credit for about a decade. Back during the 2008 -12 recession, when shady mortgages and banks were the talk du jour, this came up in a discussion. They mentioned that their loan back at the time (probably taken out in 84 or 85 I would estimate) was 15% interest. And it was an ARM with a balloon.

[falafel]

The average mortgage rate is now above 5% for the first time since 2011. Hopefully everyone refinanced because it’s getting to be too late to do so. But that’s pretty amazing that rates have stayed that low for that long of time.

I refinanced in the last 6 months at 1.75%.

[Northwestcoug]

3.04 last year. I don’t think I’ll be refinancing any time soon.

[Moliere]

I refinanced in the last 6 months at 1.75%.

I didn’t refinance because I ain’t got nothin to refinance

[fusnik]

I didn’t refinance because I ain’t got nothin to refinance

This is one of those quotes that’s meant to be a flex but really just shows a lack of understanding of basic finance.

[falafel]

[Jeff Lebowski]

Lol. When I read that post, I thought, "INCOMING!"

[Paperback Writer]

My first mortgage was 10.5%. 1992.

My first mortgage was the same year (1992). We were building and could not lock in the mortgage rate until about a month before close and the builder was behind schedule. Interest rates kept increasing and it was stressful because we decided to forgo the typical starter home and build a 2-story, 4 bedroom house. Because of the rate hikes, we decided to go with an ARM but it required an additional 5% down (to 25%). That additional $$$ tapped us out until our next paychecks were auto-deposited. I remember the initial ARM rate was around 4% but that quickly jumped 2% each year for several years until interest rates dropped and we refinanced.

30 years later, the process almost repeated itself. This time the builder could not commit to start building our second house because of supply chain issues on the homes he was in the process of completing which kept pushing start times of his new clients farther out. On top of that, building costs keep escalating so it is difficult to estimate accurately. Now interest rates are hiking upward. I'm realizing that now is just not a good time to be building a house - paying a premium for building costs and an end to low mortgage rates. Not to mention the hit to part of the building fund that is still invested in equities (yeah, I got too greedy while riding the bull market in the hope of reducing the amount of house to be financed).

[Scott R Nelson]

I didn’t refinance because I ain’t got nothin to refinance

This is one of those quotes that’s meant to be a flex but really just shows a lack of understanding of basic finance.

I don't get this at all. I also have nothing to refinance because I have no debts, owning my home outright.

Supposedly, Albert Einstein said about compound interest: “he who understands it, earns it; he who doesn't, pays for it.”

[Moliere]

This is one of those quotes that’s meant to be a flex but really just shows a lack of understanding of basic finance.

Always depends on a persons specific situation.

[fusnik]

I don't get this at all. I also have nothing to refinance because I have no debts, owning my home outright.

Supposedly, Albert Einstein said about compound interest: “he who understands it, earns it; he who doesn't, pays for it.”

If your house was truly paid for and value was 6-700k and you didn’t withdraw 500k at 2.5% you made a bad financial decision.

Maybe a 22-2400 monthly payment for access to that much liquidity is a no brainer. Also a hedge against future rate increases which everyone knew was about to happen.

Just a quick example:

You can buy a GE 10 year GO at almost 7%. You roll 400k into that and your mortgage is being covered by a GO bond from one of Americas most important companies with 100k to improve your home, go on a vacation, down payment on a rental property, down payment on second home, an NFT, 2.25 Bitcoins, speculative crypto, kids rehab, 50k into an index fund, etc etc etc.

[BigFatMeanie]

I didn’t refinance because I ain’t got nothin to refinance

[fusnik]

Celebrate financial illiteracy, whippeee!!!!!