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(AP News)   The Fed says cheap-to-free money isn't going anywhere for a while yet   (apnews.com) divider line
    More: Followup, Monetary policy, Economics, Federal Reserve System, 10-year Treasury, Federal Reserve governor, U.S. futures, World stock markets, Central bank  
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299 clicks; posted to Business » on 03 Mar 2021 at 10:38 AM (7 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



11 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-03-03 8:33:56 AM  
Yes.

Gotta calm the markets.

Lord knows they're what matters right now...
 
2021-03-03 11:07:12 AM  
The T bill auctions are about all that means anything in terms of rates right now.  If those jump high enough, the party is over.
 
2021-03-03 11:09:32 AM  
Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.
 
2021-03-03 11:16:40 AM  
Great.  Now if the damn lumber market will calm down for a while, I can build a house for my lousy family to live in.
 
2021-03-03 11:41:10 AM  

OccamsWhiskers: Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.


Hell yeah. If inflation is about to rear its ugly head, locking in a $1,500/month payment for 30 years is going to look great 30 years from now when all your tenant friends are paying someone else $10k/month for the same basic property.
 
2021-03-03 11:46:22 AM  

OccamsWhiskers: Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.


I looked into this.  I already had a pretty low 30 fixed.  Since I already paid 10 years into it, I would need a less than 2% 15 year fixed rate to actually save money over paying the same monthly increase in payment per month on my existing mortgage.  So why refinance and add fees to the principal?  I also then have the option of reducing my monthly payments to a 20 year schedule if I need to.  Switching to a 30 year means I won't ever pay it off.  And refinancing now carries a special tax that Trump and McConnell passed to pay for the tax breaks on the 0.01%.  Cash out loans also carry new fees and taxes.
So mortgage brokers, if you want a customer, make me a 1.00% fixed 15 year offer.  It's laughably still higher than the prime rate.
 
2021-03-03 12:01:39 PM  

Northern: OccamsWhiskers: Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.

I looked into this.  I already had a pretty low 30 fixed.  Since I already paid 10 years into it, I would need a less than 2% 15 year fixed rate to actually save money over paying the same monthly increase in payment per month on my existing mortgage.  So why refinance and add fees to the principal?  I also then have the option of reducing my monthly payments to a 20 year schedule if I need to.  Switching to a 30 year means I won't ever pay it off.  And refinancing now carries a special tax that Trump and McConnell passed to pay for the tax breaks on the 0.01%.  Cash out loans also carry new fees and taxes.
So mortgage brokers, if you want a customer, make me a 1.00% fixed 15 year offer.  It's laughably still higher than the prime rate.


You've got some different priorities than I do. I have no interest at all in paying off loans with rates that are likely comparable to inflation over their term, and definitely well below gains I expect from simple & safe investing. If I could make interest-only payments forever, I would.

For each of my 3 recent refinances, I've taken rates that give points back that have covered all the transaction costs. My rates aren't rock bottom, but I've been getting paid to taking lower and lower rate mortgages and renewed 30 year terms for a long time now. If I never pay the mortgages off, I'll be perfectly content.

Saving money on mortgage interest is only one side of the equation. Making money on what someone has lent you has been pretty easy. Maybe that will change and your payoff will turn out to be better than my slow payments.
 
2021-03-03 12:19:44 PM  

OccamsWhiskers: Northern: OccamsWhiskers: Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.

I looked into this.  I already had a pretty low 30 fixed.  Since I already paid 10 years into it, I would need a less than 2% 15 year fixed rate to actually save money over paying the same monthly increase in payment per month on my existing mortgage.  So why refinance and add fees to the principal?  I also then have the option of reducing my monthly payments to a 20 year schedule if I need to.  Switching to a 30 year means I won't ever pay it off.  And refinancing now carries a special tax that Trump and McConnell passed to pay for the tax breaks on the 0.01%.  Cash out loans also carry new fees and taxes.
So mortgage brokers, if you want a customer, make me a 1.00% fixed 15 year offer.  It's laughably still higher than the prime rate.

You've got some different priorities than I do. I have no interest at all in paying off loans with rates that are likely comparable to inflation over their term, and definitely well below gains I expect from simple & safe investing. If I could make interest-only payments forever, I would.

For each of my 3 recent refinances, I've taken rates that give points back that have covered all the transaction costs. My rates aren't rock bottom, but I've been getting paid to taking lower and lower rate mortgages and renewed 30 year terms for a long time now. If I never pay the mortgages off, I'll be perfectly content.

Saving money on mortgage interest is only one side of the equation. Making money on what someone has lent you has been pretty easy. Maybe that will change and your payoff will turn out to be better than my slow payments.


I have come to realize that it will be difficult to retire with mortgage payments.  Since I live in a Boston suburb, home values are in the $700k range.  I don't want four figure per month payments forever.
I can totally see that if you live more than a 3 hour drive from a major US city that the equation would change with say an $80,000 principal on the loan.  Then the payments over 30 years at 2.8% are laughably low.  It looks pretty scary when you owe multiple six figures.
 
2021-03-03 1:18:25 PM  

Northern: OccamsWhiskers: Northern: OccamsWhiskers: Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.

I looked into this.  I already had a pretty low 30 fixed.  Since I already paid 10 years into it, I would need a less than 2% 15 year fixed rate to actually save money over paying the same monthly increase in payment per month on my existing mortgage.  So why refinance and add fees to the principal?  I also then have the option of reducing my monthly payments to a 20 year schedule if I need to.  Switching to a 30 year means I won't ever pay it off.  And refinancing now carries a special tax that Trump and McConnell passed to pay for the tax breaks on the 0.01%.  Cash out loans also carry new fees and taxes.
So mortgage brokers, if you want a customer, make me a 1.00% fixed 15 year offer.  It's laughably still higher than the prime rate.

You've got some different priorities than I do. I have no interest at all in paying off loans with rates that are likely comparable to inflation over their term, and definitely well below gains I expect from simple & safe investing. If I could make interest-only payments forever, I would.

For each of my 3 recent refinances, I've taken rates that give points back that have covered all the transaction costs. My rates aren't rock bottom, but I've been getting paid to taking lower and lower rate mortgages and renewed 30 year terms for a long time now. If I never pay the mortgages off, I'll be perfectly content.

Saving money on mortgage interest is only one side of the equation. Making money on what someone has lent you has been pretty easy. Maybe that will change and your payoff will turn out to be better than my slow payments.

I have come to realize that it will be difficult to retire with mortgage payments.  Since I live in a Boston suburb, home values are in the $700k range.  I don't want four figure per month payments forever.
I can totally see ...


The amount of the mortgage doesn't change it at all for me. In my city, average SFH prices are about $1 million. There hasn't been a sale of one under $500k in years.

It's not a single calculation, it's a tradeoff. It's something like I can have no mortgage payment OR I can have a $2000 mortgage payment AND six figures in savings. You favor the first, I favor the latter. Neither is a bad choice of course, and even in hindsight if 'the other' would have been financially better for either of us, as long as I feel like I made an informed choice of the expected risk & rewards I don't think I'll have regrets.

My residence mortgage is almost $500k, and I'll make my 2nd of 360 payments (again!) in a few days. We bought it almost 10 years ago. The balance is quite a bit lower than it started, but the payoff date is as far as it's ever been. It's been a good choice for us - our net worth has skyrocketed during that period despite modest reduction in debt.
 
2021-03-03 2:24:28 PM  

OccamsWhiskers: Northern: OccamsWhiskers: Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.

I looked into this.  I already had a pretty low 30 fixed.  Since I already paid 10 years into it, I would need a less than 2% 15 year fixed rate to actually save money over paying the same monthly increase in payment per month on my existing mortgage.  So why refinance and add fees to the principal?  I also then have the option of reducing my monthly payments to a 20 year schedule if I need to.  Switching to a 30 year means I won't ever pay it off.  And refinancing now carries a special tax that Trump and McConnell passed to pay for the tax breaks on the 0.01%.  Cash out loans also carry new fees and taxes.
So mortgage brokers, if you want a customer, make me a 1.00% fixed 15 year offer.  It's laughably still higher than the prime rate.

You've got some different priorities than I do. I have no interest at all in paying off loans with rates that are likely comparable to inflation over their term, and definitely well below gains I expect from simple & safe investing. If I could make interest-only payments forever, I would.

For each of my 3 recent refinances, I've taken rates that give points back that have covered all the transaction costs. My rates aren't rock bottom, but I've been getting paid to taking lower and lower rate mortgages and renewed 30 year terms for a long time now. If I never pay the mortgages off, I'll be perfectly content.

Saving money on mortgage interest is only one side of the equation. Making money on what someone has lent you has been pretty easy. Maybe that will change and your payoff will turn out to be better than my slow payments.


Let's not forget that nobody's saying you can't pay off the new 30-year early, but it will have a lower monthly obligation that than one you've paid on for years, so if something unexpected were to happen it would be easier to not default on the mortgage.
 
2021-03-03 3:38:27 PM  

cannibalparrot: OccamsWhiskers: Northern: OccamsWhiskers: Get some, farkers. I think there are still great mortgage refinance options. You can have some cheap money for 30 years if a refi works for you.

I looked into this.  I already had a pretty low 30 fixed.  Since I already paid 10 years into it, I would need a less than 2% 15 year fixed rate to actually save money over paying the same monthly increase in payment per month on my existing mortgage.  So why refinance and add fees to the principal?  I also then have the option of reducing my monthly payments to a 20 year schedule if I need to.  Switching to a 30 year means I won't ever pay it off.  And refinancing now carries a special tax that Trump and McConnell passed to pay for the tax breaks on the 0.01%.  Cash out loans also carry new fees and taxes.
So mortgage brokers, if you want a customer, make me a 1.00% fixed 15 year offer.  It's laughably still higher than the prime rate.

You've got some different priorities than I do. I have no interest at all in paying off loans with rates that are likely comparable to inflation over their term, and definitely well below gains I expect from simple & safe investing. If I could make interest-only payments forever, I would.

For each of my 3 recent refinances, I've taken rates that give points back that have covered all the transaction costs. My rates aren't rock bottom, but I've been getting paid to taking lower and lower rate mortgages and renewed 30 year terms for a long time now. If I never pay the mortgages off, I'll be perfectly content.

Saving money on mortgage interest is only one side of the equation. Making money on what someone has lent you has been pretty easy. Maybe that will change and your payoff will turn out to be better than my slow payments.

Let's not forget that nobody's saying you can't pay off the new 30-year early, but it will have a lower monthly obligation that than one you've paid on for years, so if something unexpected were to happen it would be easier to not default on the mortgage.


That is an interesting perspective.  It sounds crazy, but I like the obligation to complete the current remaining 20 years so I am not tempted to pay the minimum and never pay it off.  Thankfully my income has grown over the past 10 years so I can afford to do so.
 
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