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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32159 posts

I was very proud of my financial savvy until today

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%.




matthew25
Ole Miss Fan
Member since Jun 2012
4022 posts

re: I was very proud of my financial savvy until today
What could have been your 15-year rate?


wickowick
LSU Fan
Head of Island
Member since Dec 2006
27808 posts

re: I was very proud of my financial savvy until today
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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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32159 posts

re: I was very proud of my financial savvy until today
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.


saving$
LSU Fan
Member since Nov 2012
34 posts

re: I was very proud of my financial savvy until today
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.



foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32159 posts

re: I was very proud of my financial savvy until today
Condo refi with no points.


tirebiter
LSU Fan
ATL
Member since Oct 2006
5359 posts

re: I was very proud of my financial savvy until today
The 5/5 @ 2.75% with no closing costs continues to tempt me but I am very inert these days.


TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17798 posts

re: I was very proud of my financial savvy until today
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?


GFunk
LSU Fan
Denham Springs
Member since Feb 2011
10299 posts

re: I was very proud of my financial savvy until today
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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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32159 posts

re: I was very proud of my financial savvy until today
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.


TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17798 posts

re: I was very proud of my financial savvy until today
Isn't there a clause that you must be have the house as your primary residence in most loans?


Cholo
LSU Fan
National City, CA
Member since Oct 2012
1076 posts

re: I was very proud of my financial savvy until today
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.


Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
499 posts

re: I was very proud of my financial savvy until today
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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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32159 posts

re: I was very proud of my financial savvy until today
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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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
59134 posts

re: I was very proud of my financial savvy until today
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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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: I was very proud of my financial savvy until today
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?


bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: I was very proud of my financial savvy until today
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%


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32159 posts

re: I was very proud of my financial savvy until today
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.


bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: I was very proud of my financial savvy until today
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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TigerDeBaiter
LSU Fan
Member since Dec 2010
3263 posts

re: I was very proud of my financial savvy until today
quote:

in 5 years interest rates will touching 10%


Do tell.


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