I was very proud of my financial savvy until today
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I was very proud of my financial savvy until today
Posted by foshizzle on 12/7 at 7:32 pm
I closed last week on a 3.25% 30 year fixed rate mortgage with Pentagon Federal CU. Felt like I was stealing candy from a baby.

Today they are advertising 3.125%.




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Posted by matthew25 on 12/7 at 7:37 pm to foshizzle
What could have been your 15-year rate?


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Posted by wickowick on 12/7 at 7:49 pm to foshizzle
quote:

I closed last week on a 3.25% 30 year fixed rate mortgage with Pentagon Federal CU. Felt like I was stealing candy from a baby.


Pigs get fat and hogs get slaughtered...



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Posted by foshizzle on 12/7 at 8:07 pm to matthew25
quote:

What could have been your 15-year rate?


The ROI on the higher payments is so negative after taxes and inflation that a 15 year is actually worth less. Yes, I did run the numbers.

The only way a 15 year beats a 30 is if inflation stays under about 3% for the next 15-20 years. I personally doubt this quite strongly, although Japan has proved it to be possible.



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Posted by saving$ on 12/7 at 8:43 pm to foshizzle
quote:

I closed last week on a 3.25% 30 year fixed rate mortgage with Pentagon Federal CU. Felt like I was stealing candy from a baby.



Was this a refinance or new loan? Points?

I closed recently 30 year 3.5%, 80% LTV, and 0 points. I too thought I was getting a good deal. Not a big deal though since I plan on turning it into a rental. I try not to worry too much about these things as my savings rate right now is much more important than my investment returns.

If rates go down low enough, I'll refinance with no closing and take a slightly higher rate.




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Posted by foshizzle on 12/7 at 8:49 pm to saving$
Condo refi with no points.


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Posted by tirebiter on 12/9 at 1:10 pm to foshizzle
The 5/5 @ 2.75% with no closing costs continues to tempt me but I am very inert these days.


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Posted by TheHiddenFlask on 12/9 at 10:30 pm to foshizzle
quote:

The ROI on the higher payments is so negative after taxes and inflation that a 15 year is actually worth less. Yes, I did run the numbers.



Yeah, but that's assuming that you won't move for 30 years.

How many people actually live in the same house for 30 years?



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Posted by GFunk on 12/9 at 10:33 pm to TheHiddenFlask
quote:

TheHiddenFlask


quote:

How many people actually live in the same house for 30 years?


How many people actually pay on the same house for 30 years?



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Posted by foshizzle on 12/9 at 11:08 pm to TheHiddenFlask
quote:

Yeah, but that's assuming that you won't move for 30 years.


That's assuming I won't sell for 30 years.

I can move and rent the property.



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Posted by TheHiddenFlask on 12/9 at 11:58 pm to foshizzle
Isn't there a clause that you must be have the house as your primary residence in most loans?


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Posted by Cholo on 12/10 at 7:22 am to TheHiddenFlask
quote:

Isn't there a clause that you must be have the house as your primary residence in most loans?


Almost all loans for a primary occupant specify that you have to intend to occupy it for one year.



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Posted by Crbello4Hiceman on 12/10 at 10:27 am to Cholo
Correct- after that you just need to notify the bank in writing that you aren't living there anymore and they have to allow you to move out unless there is some unusual circumstance that would pose a risk to the bank (they say it in more formal legalese than this).


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Posted by foshizzle on 12/10 at 3:24 pm to Cholo
quote:


Almost all loans for a primary occupant specify that you have to intend to occupy it for one year.


Exactly. And I have every intention of doing that. But I don't have to stay there for the full 30.



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Posted by Broke on 12/10 at 4:03 pm to TheHiddenFlask
quote:

How many people actually live in the same house for 30 years?


I'm 41 and just built my 30 year house. I'm here til I take a dirt nap.



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Posted by bryso on 12/10 at 7:24 pm to foshizzle
quote:

closed last week on a 3.25% 30 year fixed rate mortgage with Pentagon Federal CU. Felt like I was stealing candy from a baby.


was you condo development comply with all the FHA rules or whatever its called?



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Posted by bryso on 12/10 at 7:26 pm to tirebiter
quote:

he 5/5 @ 2.75% with no closing costs continues to tempt me but I am very inert these days.



no way i would lock rate in for only 5 years unless i was 2000% sure i was going to pay it off in 5 years... and even then it that might not be sure enough.


in 5 years interest rates will touching 10%



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Posted by foshizzle on 12/10 at 7:46 pm to bryso
quote:

was you condo development comply with all the FHA rules or whatever its called?


It's a conventional conforming loan if that's what you mean. Not FHA.



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Posted by bryso on 12/10 at 7:51 pm to foshizzle
so it qualified for all of those BS standards they have

(they are only bs b/c my condo dev doesnt qualify)



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Posted by TigerDeBaiter on 12/10 at 7:51 pm to bryso
quote:

in 5 years interest rates will touching 10%


Do tell.



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