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Orange Blooded [3615]
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The interest rate on 15 year refi is 6.23%. It will be 7% in a couple of weeks.
Sep 15, 2022, 12:51 PM
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Do you think people are done refinancing their houses? Also, do you see the real easte market taking a big hit this next year? I would to be a mortgae broker coming up.
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Heisman Winner [135752]
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Just the opposite for me.
Sep 15, 2022, 12:55 PM
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I would NOT to be a mortgae broker coming up.
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Orange Blooded [3615]
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Re: Just the opposite for me.
Sep 15, 2022, 12:59 PM
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Haha...yeah my phone is lagging. Yes, I would hate to be a mortgae broker coming up.
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Oculus Spirit [81249]
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Orange Blooded [3615]
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Re: Its not that much, but I can't imagine why anyone wouldn't
Sep 15, 2022, 1:01 PM
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Mine is at 4% and I kind of thought that was just ok. What interest rate do you think is the level where people stop buying?
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Oculus Spirit [81249]
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Stop buying houses??
Sep 15, 2022, 1:06 PM
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People were buying houses when interest rates were in the double digits.
If/when I come across a house I want at teh price I'm willing to pay, I'll still buy. I won't be financing much of it, but depending on the house and location...I would.
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Hall of Famer [21992]
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Idk man
Sep 15, 2022, 11:31 PM
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Maybe I'm a little too deep in the bourbon, but I don't see tigernet being the same when you actually buy a house.
This comes from love haha
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Oculus Spirit [81249]
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1 year 11 months ago
Sep 16, 2022, 10:00 AM
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I signed a lease on the beach house.
Seems like a lifetime ago. When I moved in $3500 was ridiculous in rent. That's like the cheapest place in Mt Pleasant now. That house will rent for $6k/month in April.
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All-In [46871]
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People who don't have a mortgage posting ITT
Sep 16, 2022, 7:40 AM
[ in reply to Stop buying houses?? ] |
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but yeah a buddy of mine built his house back when the interest rate was 8%.
We will see a massive drop in home values (already seeing it now.) and massive is speculative.
We will also see more ARM's. People will get into a higher interest rate now in hopes that once that 5/1 ends, interest will go back down.
But yeah if you didn't refinance last summer you missed a massive boat.
Only problem I have now is I can't refinance or even take out a HELOC because I don't want to pay 6% interest
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Oculus Spirit [81249]
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So you have all your cash wrapped up in a house, that
Sep 16, 2022, 10:45 AM
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you say is massively dropping in value, and you can't access the equity you hav in the house (whatever remains of that) because it costs too much.
Wow, I was really dumb for renting at the beach.
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All-In [34823]
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Lot o points [163012]
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About what I paid for mine, about 3/4 acre
Sep 16, 2022, 11:08 AM
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1700 sq ft and a 12% negative amortization loan, around 1982 iirc. Neg amort for first five years, but I sold it before then due to DIVORCE.
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All-In [34823]
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Typing DIVORCE in all caps
Sep 16, 2022, 11:15 AM
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makes it seem like another acronym. Taking submissions for proposed acronym definitions for DIVORCE.
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CU Guru [1065]
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Re: The interest rate on 15 year refi is 6.23%. It will be 7% in a couple of weeks.
Sep 15, 2022, 1:02 PM
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Follow this pretty closely.
1. Yes, I think the refi market is done for now. Tough industry to be in right now
2. Will housing prices come down? Most certainly but how much depends where you live. I live in Upstate SC and I think we will slow down and come down some but not near the degree of other parts of the US (Ohio, NY, etc I know...I know). Same with a Salt Lake City......people are moving out of California and one of the closest largest cities is SLC. Sure the average home price in the Upstate may come down say 5-10% (estimate) but who really cares when they have increased so much over the past 10 years.
One last thing on interest/mortgage rates..........was speaking with a realtor friend of mine and so many deals have been all cash deals so interest rates dont matter. Folks selling their homes up north for say $800k and taking their equity and buying a similar home here for $500k.
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Orange Blooded [3615]
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Re: The interest rate on 15 year refi is 6.23%. It will be 7% in a couple of weeks.
Sep 15, 2022, 1:06 PM
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Pretty much what I speculated. Its pretty obvious though. Now how about an inflated city like Charleston though. That one is a little trickier.
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Oculus Spirit [81249]
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House prices won't drop much here.
Sep 15, 2022, 1:08 PM
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They didn't even in 2008-2009, at least not closer to Shem Creek.
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Orange Blooded [3615]
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Re: House prices won't drop much here.
Sep 15, 2022, 1:28 PM
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Yeah that spot isntoo unique. Kind of like Santa Barbara, Laguna Beach, etc.
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Orange Blooded [4723]
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I dunno where you are getting those rates
Sep 15, 2022, 1:06 PM
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I'm working on something right now for a jumbo (over 2M, not mine lol) at 5.25.
If you are paying that for a 15 yr you've got crappy credit.
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Orange Blooded [3615]
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Re: I dunno where you are getting those rates
Sep 15, 2022, 1:09 PM
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Thats a 30 year refi rate. Bankrate.com I believe
"Today's mortgage refinance rates increase : September 14, 2022. The average 30-year fixed-refinance rate is 6.23 percent, up 10 basis points over the last seven days. The 15-year fixed refi average rate is now 5.54 percent, up 19 basis points over the last seven days. [...]"
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Orange Blooded [4723]
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Nope 15
Sep 15, 2022, 1:14 PM
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Was an interest only arm @3.375 expiring and going up to 6.25 so doing a refi.
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Orange Blooded [3615]
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Re: Nope 15
Sep 15, 2022, 1:21 PM
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Thats what Bankrate is reporting.
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Oculus Spirit [81249]
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They are reporting an average
Sep 15, 2022, 1:22 PM
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look at their actual rates for your credit score
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Orange Blooded [3615]
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All-In [31938]
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You're missing that a LOT of people have bad credit...
Sep 15, 2022, 1:37 PM
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ratings...which push the avg up.
Doesn't mean that the article is wrong...it just means that you can't say that "30 year mortgages are over 6% now" as a blanket statement because there are a lot of people getting them in the mid to low 5's currently.
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Orange Blooded [3615]
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Re: You're missing that a LOT of people have bad credit...
Sep 15, 2022, 1:40 PM
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I get it now. Appreciate it.
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Oculus Spirit [97838]
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We stood firm at 2.125%
Sep 15, 2022, 1:31 PM
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Which is why the rates are climbing. They have to charge the next guy more to cover what they will lose to folks like me in the next 15 years.
Fun fact...
The current Zillow value (fwiw) of our house, is exactly the amount we should have paid over 30 years, with interest, based on our 2011 30-year fixed mortgage. Now my mother bought a house in 1982, paid it off in 2012, and in 2016 sold it for roughly the same amount she paid over the 30 year mortgage. THAT is what mortgage companies want to see. She got ticked when I reminded her that the sale price did not represent a doubling of the investment, as she had paid, over the 30 years, almost exactly what she sold it for. This is almost as bad as people who blow their IRS tax refunds because they think it's some gift from the gubmint. If you finance a $300K house, and in 30 years pay $700K total to satisfy the 30-year mortgage, and then in 30 years sell it for $750,000, you didn't MAKE $350K on the sale. You made 50K, and that's only because you chose a good neighborhood.
And this can differ by market as well, but on average you usually end up not making anything if you pay the entire mortgage off. You only make the appreciation after the 30 year term, assuming you stay in your house. That difference is your net gain. And some houses decline in value. But this inflation has upended the math on this whole mortgage mess.
A big part of debt "assets" is the value of the debt over a length of time.
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All-In [43012]
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Your mom is right, and you are wrong.
Sep 15, 2022, 1:41 PM
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Unless she didn't live in that house. You are ignoring the actual value of having a home for 50 years. Not just the buy and sell price. It's not like a stock or a gold bar that is purely an investment, a house is a thing with utility.
Also banks DGAF what your house's value is before, during or after the mortgage. They are just making a loan. If you pay it back with interest they make money.
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Oculus Spirit [81249]
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Unless you own it to rent out and use it like
Sep 15, 2022, 1:45 PM
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a hooer.
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CU Medallion [64837]
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If renting your house makes you a hoooooer
Sep 16, 2022, 10:49 AM
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then does that make you a John?
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Oculus Spirit [81249]
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Yes?***
Sep 16, 2022, 10:51 AM
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All-In [49250]
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another benefit is the equity build up along the way,
Sep 15, 2022, 2:27 PM
[ in reply to Your mom is right, and you are wrong. ] |
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which is an asset, and an asset that can be borrowed against if it makes sense.
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Oculus Spirit [81249]
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Theres more to it than that.
Sep 15, 2022, 1:44 PM
[ in reply to We stood firm at 2.125% ] |
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Depending on the location, it may be irreplaceable. Lets say my parents bought a house on IOP beach front, or on the ICW 30 years ago. I can't replace that. If I sold today...I can't go anywhere else and replace it for the same money.
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CU Medallion [60244]
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add in property taxes to total costs also
Sep 15, 2022, 1:47 PM
[ in reply to We stood firm at 2.125% ] |
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but as Ken stated, if you lived there the whole time you got 30 years of shelter, which has great value.
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Oculus Spirit [97838]
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I can get 30 years of shelter for $80K.
Sep 15, 2022, 4:25 PM
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Heck, I could get shelter the rest of my life for zilch.
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All-In [46871]
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Ah another tent gentleman I see
Sep 16, 2022, 7:44 AM
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@sstubborn_tiger®
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All-In [49250]
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Also, paying off early can be mo betta than refinace.
Sep 15, 2022, 2:38 PM
[ in reply to We stood firm at 2.125% ] |
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people forget that the amortization schedule starts over with a refinance, you're back to hardly paying any principal. If you're 15 or 20 yrs in on a 30 yr, you might be better off scraping up extra principal payments and getting it over quick, depending on the new term and new rate. Math necessary.
"Might be better off, depending"
Message was edited by: NoIntroduction®
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Oculus Spirit [97838]
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Our 15 year refi ended up with the same monthly payments
Sep 15, 2022, 4:29 PM
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as our 30yr. So even with upfront interest, over 15 years, now 11, we save over $100K, or about 9 years of payments.
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Lot o points [156096]
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In addition to the other reasons people mentioned your logic
Sep 16, 2022, 7:45 AM
[ in reply to We stood firm at 2.125% ] |
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is flawed, you're also completely ignoring the time value of money paid out over 30 years compared to that final sale price.
You should go tell your Mom today that she didn't get screwed anywhere near as bad as you indicated.
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Orange Blooded [4723]
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You're forgetting that by assuming a mortgage you are
Sep 16, 2022, 10:32 AM
[ in reply to We stood firm at 2.125% ] |
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not paying the full amount upfront, so in theory the money that you would be spending can be invested elsewhere and get a higher rate of return than the interest you are paying on the home loan.
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All-In [40952]
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I refinanced at 2 % little over a year ago
Sep 15, 2022, 1:43 PM
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Housing market is tanking. Const materials are getting cheaper
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Oculus Spirit [81249]
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Where is the market "tanking"?
Sep 15, 2022, 1:47 PM
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And what does that mean?
If houses go down 30%, is that "tanking" when they've gone up 40%-100% in the last 2 years?
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All-In [40952]
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Very few places had houses go up that much in the last 2
Sep 15, 2022, 3:58 PM
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years maybe along the coast and other desirable places. 40% increase might be an average in the last 2 years which means half went up less than that.
Yes I would consider a 30% drop in value tanking. I don't think values will drop that much. Most people will just ride it out if their house drops 30% in value. Only people that will be selling are those that have to sell.
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Oculus Spirit [94219]
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How long until the drop from the highest price to...
Sep 15, 2022, 2:01 PM
[ in reply to I refinanced at 2 % little over a year ago ] |
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the time when the recent price increase has been cut in half. I know that's asking for an opinion and understand any investment I make in a remodeling project is my responsibility alone. I'm just wondering how long it might take to make construction practical.
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Oculus Spirit [81249]
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IMO, you may not ever get there.
Sep 15, 2022, 2:09 PM
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The selling price of teh house may go down, but inflation will keep it higher than it was in say..2020.
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All-In [49250]
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depends on how much remodeling, current condition, etc.
Sep 15, 2022, 2:48 PM
[ in reply to How long until the drop from the highest price to... ] |
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If it's in serious need of remodeling, you won't get a good resale price unless there's another bubble.
If it's just basic paint and basic remodeling kitchen & bath, and yours is really dated, you'll come out ahead.
And the basic tenant, you don't want the most expensive house in the neighborhood.
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All-In [40952]
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Legend [17351]
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Bought 1st house 1980. Remember like 16% or higher?***
Sep 15, 2022, 4:09 PM
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Lot o points [181188]
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Mom talks about the rate like that when they bought
Sep 15, 2022, 6:16 PM
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house in Rock Hill in '78.
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Heisman Winner [135752]
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YOU GOTTA PAY TO PLAY.***
Sep 16, 2022, 10:59 AM
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CU Medallion [64837]
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Great. I knew that holding on to my old 6.75% rate was a
Sep 16, 2022, 10:51 AM
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good move. I knew it would swing back the other way. Now I'm back in line with everybody else.
All you people ran around doing all this refinancing crap, and ended up back where you started.
Suckers.
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CU Medallion [60244]
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