Interest rates.

Discussion in 'Everything Else' started by az240zz, Feb 6, 2018.

  1. az240zz

    az240zz Registered Contributor

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    I'm buying a home and I've been quoted an interest rate of 4.625%. Should i lock this or what is the collective feeling about it going down??
     
  2. Dback Jon

    Dback Jon Killer Snail Contributor

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    Lock it. Rates are only going up.


    But first - what term?
     
  3. 82CardsGrad

    82CardsGrad 7 x 70

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    I'm no expert... and even the experts aren't so "expert" on this topic. However, the overwhelming consensus is that rates are absolutely going higher. The 10 Year Bond Yield is at the highest levels since 2014. And again, the overwhelming sentiment is that it will be over 3 by the 4th quarter of this year.

    Historically speaking, a 4.625% rate is extremely low. Personally, I find it hard to believe that the rates we've seen over the past 8 years or so, would remain at these levels. That hardly, if ever happens.
    So - if it were me and you are absolutely going to buy a home, I would lock in the rate... But again, for all I know rates can plummet... And hey - you know how are POTUS is going to make everything GREAT again so maybe he'll get those rates down lower than they were when the evil Obama was in the White House...
     
  4. az240zz

    az240zz Registered Contributor

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    30 year. I can always make it a 15 yr by paying more..
     
  5. az240zz

    az240zz Registered Contributor

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    I thought that maybe the rate might drop a little based on the stock market gyrations.
     
  6. Dback Jon

    Dback Jon Killer Snail Contributor

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    If you can afford a 15-year, do it. Will save tens of thousands over the long run, and should be able to get a lower rate.
     
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  7. 82CardsGrad

    82CardsGrad 7 x 70

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    You'll find a lower rate on a 15 year loan... If you can swing the higher payment, it's worth it.
     
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  8. az240zz

    az240zz Registered Contributor

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    I can't, probably going to own the house for 5 years or so.
     
  9. MrYeahbut

    MrYeahbut rilly bruh, rilly?? Contributor

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    I have always used 15 year term. Lower rate, you'll be happy that you did it once 15 years rolls around, and you build up equity in your home more quickly should you ever need to access it.

    I sent a few extra bucks a month and paid my house off in 12 years... No mortgage!!
     
  10. Linderbee

    Linderbee Let's GO, CARDINALS! Contributor

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    To answer the OP, I'd lock it now if I were you.

    dcr & I refi'd to a 15 year when rates were at their lowest; our payment stayed about the same and we've been making a payment and a half as long as we've owned our home (9 years this summer). We're hoping to have it paid off in about 3-4 more years. It's so nice knowing that.
     
  11. BigRedRage

    BigRedRage badass Contributor

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    The Fed just increased rates, I would only expect increases for the time being until home values start to decrease again. 4.65 is really high for the last 6+ years but it keeps increasing for now. Home prices are stupid high and I expect this to stagnant equity growth and if anything over time being home prices back down before interest plummets again

    I am no expert but I do have interest and experience on the market

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  12. BigRedRage

    BigRedRage badass Contributor

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    Personally I always did a 30 and paid extra but I'm scared of high bills

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  13. BillsCarnage

    BillsCarnage Registered

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    Yeah, this is my line of thinking too. If something happens income wise, I don't want to be house poor. I'd rather make as many extra payments as possible to pay the mortgage off.

    I didn't refi, but if I started paying my extra income to the mortgage, it could be paid off in about 6yrs. Obviously if nothing comes up that interrupts those payments; a big if. I've been looking at moving in the next year or so and wanted to sell my current house and use the increased value for the down payment on a new house. But, now I'm thinking of just hunkering down and trying to pay it off.
     
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  14. BigRedRage

    BigRedRage badass Contributor

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    The problem is that all the other houses have increased in value too so it is mostly relative. Unfortunately selling and waiting for a crash could take a real long time.

    I bought when markets were low and used the equity to buy a much bigger house and rented the old one out. It worked out pretty well.
     
  15. BillsCarnage

    BillsCarnage Registered

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    I'm not looking at selling and waiting. If I sell, it's to move.

    Yeah, I bought this house in 2009 when it was almost at the bottom and it has rebounded nicely. I'd really like to keep it as a rental, but could use the increased value as a down payment. Or just stay and try to pay it off.
     

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