I was very proud of my financial savvy until today | TigerDroppings.com

Posted byMessage
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts
 Online 

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%.








Back to top
Share:
matthew25
Ole Miss Fan
Member since Jun 2012
3533 posts

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


What could have been your 15-year rate?





Back to top
wickowick
LSU Fan
Head of Island
Member since Dec 2006
24826 posts
 Online 

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...






Back to top
  Replies (0)
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts
 Online 

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.






Back to top
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.







Back to top
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts
 Online 

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


Condo refi with no points.





Back to top
tirebiter
LSU Fan
ATL
Member since Oct 2006
5243 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.





Back to top
TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17034 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?






Back to top
GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8826 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?






Back to top
  Replies (0)
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts
 Online 

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.






Back to top
TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17034 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?





Back to top
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.






Back to top
Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
449 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).





Back to top
  Replies (0)
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts
 Online 

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.






Back to top
  Replies (0)
Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57256 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.






Back to top
  Replies (0)
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27086 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?






Back to top
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27086 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%






Back to top
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts
 Online 

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.






Back to top
bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27086 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)






Back to top
  Replies (0)
TigerDeBaiter
LSU Fan
Member since Dec 2010
2924 posts

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


quote:

in 5 years interest rates will touching 10%


Do tell.






Back to top


Back to top