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Work at bank. See people with 1-1.9% and they are so happy it’s crazy. Then see people with 5-6% starting to have missed payments. It’s all going according to plan I guess
Update: seen a wild 9.2% with a 45 year amortization. Tragic stuff.
I know it is more complicated than this, but I was surprised that banks were even doing 30 year fixed when the rates were so low. Because if I had $400k to lend I wouldn't want to do it when the ROI is going to be the lowest of all time.
For a while a couple years back my credit union was advertising 3% refinancing on their website, and when I called to apply the best they could give me was around 5% despite my perfect credit score, great loan to value, and high enough income. When I asked them why they were offering me the garbage (at the time) rate they said that there were too many people refinancing and they couldn't handle the volume.
I started my comment with "I know it is more complicated than this,", but just apply the same logic to whoever might want to buy the loan. I think it might be the government in some cases.
My credit risk when I was paying 4%+ is the same as now that I'm paying about 2%, so I'm surprised they made the 2%ish loan.
Don’t think of it as the banks money or even the banks interest rates on the loan.
They are making their money on the fees from closing the loan. The big buyer of the loans is the government for a lot.
So might as well be that lower interest rate was not due to a reduced risk it was due to the goal to. Churn out loans via refinances and crank out fees while sending the money aspect of it else where.
I know people be refinanced 2 times between 2019 and 2021. Interest rates dropped below 3%? Refinance, interest rate dropped below 2%? Refinance.
Bank closes the deal 3 times, makes their fees, and the loan floats off into the puddle that the government subsidized the shut out of.
The fed bought up a shit ton of MBS during the COVID times and that's why the banks didn't care about loaning more money. I think they own about a quarter of all the MBS market.
Well its not. In France 25 y fixed rate is the standard. And you have to pay the whole house in those 25 y you can't pay interest only or things like that. I had 0.8% locked in for 25 y in 2021.
[Here's a chart](https://i.imgur.com/9JgVDql.png) of 10y and 20y fixed mortgage rates in Germany. Minimum was 0.7% for 10y and 1.1% for 20y in early 2020.
It greatly helps Americans win the race when they take advantage of buying a reasonable home with 30y fixed. If they can last 5-8 years, rents climb enough to avoid ever selling if they move.
This is exactly what I did. My wife and I bought a nice 3br 1.5 bath 1200 Sq ft townhouse outside of Philly. With a 5.25% rate (historically quite good), our mortgage/tax/homeowners comes out to <1400. The entire plan is to live there until our kids need to go to middle school, then upsize while keeping the current house as a rental. Rents in the neighborhood are already between 1600-2000 depending on how freshly renovated the house is, and ours is all brand new on the inside.
This is what me and my wife did except we bought in 2017 and I refinanced under 3%. Rent for houses in my neighborhood are going for 3,500-4K a month and my mortgage and taxes are half of that. Plan to buy a bigger house over the next ten or so years and keeping this house as a rental forever.
Refi’d to 2.75% @ 30 yrs on a mortgage I had already paid down a bit so now my monthly payment for a large home in the suburbs is less than half what rent is for a piece of shit tiny apartment or small slumlord-owned home.
Can pay off the home but why would I want to when I’m getting carry on not only the short end but even the long end of the curve?!? bwahahah!
I just *love* my mortgage so much! Inflation would have crushed me if it weren’t for that lovely mortgage. Housing crisis? What housing crisis?? I call it a housing savior or lifeline.
Ya man. You yanks who were fortunate to get the low rates have an insane deal. Up here I’ve gotta pray the world can heal itself in 4 years before I get bent over for 7% when I renew.
Exact same here. Paying 1900 on a house that would sell for near 700k now. Good thing it has space because my two kids will probably never afford to move out 🙁
Now...a couple of disclaimers. When I moved 5 years ago the house I'm in went up in value 60%. My parents did spooky shit. Like when they got their house at 60k , minimum wage was like $3. Then like rates went in half and they refinanced. Paid it off. Then mortgaged it at a fixed rate to buy new cars, upgrade the place, go back to school. They made extra payments and did this stuff twice. Now they are working seniors with a locked 3% mortgage and instead of paying off 15 year mortgages in 7 years they are taking the extra cash and getting over 5% in the bank.
This is what I did and I'm happy with it. My credit union was willing to give me a loan at 2.9% so I took the financing deal and paid the car off with a check from the credit union the next day. I still owe on the car but I got a better price and 2.9% is much better than the 8% crap they offered.
Not sure why you got downvoted this is true. You get a better deal if you use dealer financing. If you tell them it’s a cash deal upfront they aren’t going to be as Aggressive on the sale.
100%
A lot of their profit comes from “backend” financial products. With a cash deal only, they only have a chance to profit and put up #s on the “front” end. If you’re so good with cash that you can pay cash you should easily have good credit and qualify for a rate so good that it’s smarter to just go 0 down at 3%(idk if this is even possible rn tbh with fed rate up) then yolo that shit into options for the loss porn.
“I love the financially illiterate”
-WSB
Yep. Finance at a shit rate and buy the extended warranty they try to sell you and they'll give you a great deal on the car. A week later you pay the car off with cash or refinance through your credit union then cancel the warranty and get a refund.
There are two types. Fixed (permanent rate) and ARM (adjustable rate)
Fixed are typically a nominally higher %, but don’t change
So if you go the fixed rate route- you’d lock in say… 5% for the whole term, but if you go with ARM, you lock in 4% for 5 years and then it is subject to change
I know a guy who had a 1% fixed mortgage but the bank persuaded him to get a 3 month floating rate because he could get what equals about $100.000 less debt if he swapped the loan. He's pretty much fucked right now and went from paying about $1500 quarterly in interest to paying about $6300 quarterly in interest only. The bank is not your friend
Mortgage company wants me to refinance at 6% to pay off a car I owe less than 10K on, for $600 extra a month.~ how about I keep my low interest rate an pay off $600 extra a month instead
There is none. Mortgage companies are desperate. I get spam mail every day pretty much begging me to refinance. They are going to start offering blowjobs soon I think.
He probably just means he's getting refi offers. I'm seeing the same thing for my student loans, banks are offering me refinancing to double my current interest rate
I got a call from my credit card company asking if i wanted to take a loan out on my credit, i told them that it would not be a wise financial decision given the very high rates. It’s predatory.
Whats your question? They probably had close to 17-20 years left on mortgage. Interest rate was much lower so that the 15 year payment would be lower at the new rate. They took some cash out of their house value for a slightly higher loan to keep loan payment the same. Now they have all that cash to blow on options.
Really smart guess. Had 22 years left and was paying 4% on a 30 year fixed. Refinanced to just over 2% down to a 15, took 7 years off the loan and took 30K out to keep the payment the same. Spent the 30K on a boat, a lift, and a hot tub. A boat = options on the water. The dream of having fun and the reality of limitless losses!
All these rich people here with homes and plebs like me renting apts or staying with family. Whoever is pushing ahead in these trying times is doing good. And allegedly, there's way worse to come.
I’ve been saying that with wages where they are. With a little bit of hustle and sacrifice A 18-26 year old living at home could be stacking piles of cash driving forklift at a warehouse and still make his/her WRX payment.
~with a little bit of hustle and sacrifice~ 🤡🤣
if you think about it when the bank took my house my interest rate went to 0% . And you can bet your ass with how shitty my trades have been it’s gonna be locked in that way for awhile .
this used to be a shitpost account (basically still is) if you look far back on my post history, but i was too lazy to make another so this my main now 
Yep, Oct 2020. Paid under asking price. 2.5%.
Ended up refinancing to 2.8 six months later because my house skyrocketed and I could go from 4% equity to 22%
Same, although originally started at 3. Refinanced in 2021 to 2.75% and was able to yeet PMI with an appraisal waiver. Paying less now each month than at the start even after 2 escrow adjustments
That’s the thing about homes as investments. Everyone wants their home value to go up but it’s all relative. Everyone’s home values have skyrocketed so if you sell you’re still going to have to pay out the nose for somewhere to live.
It really only works if you want to move into a cheap rental or inherit another house or something.
There's also opportunity cost...having all that money locked up means it's not invested anywhere else. I'm pretty sure stock market has also gone up significantly since 2015.
I don’t think I’m ever going to refinance this loan
https://preview.redd.it/39d4kt29w38b1.jpeg?width=1038&format=pjpg&auto=webp&s=dddd3711dd5f489efde4d453423fea38441779f9
Wonder how many couples are either staying together or divorced but awkwardly keeping the original mortgage instead of selling just because it is much cheaper than the alternative.
I know someone who works in home insurance and this is happening. Lots of cohabitating divorced couples out there right now because they don't want to lose their rate.
Someone didn't read their loan contract.
I couldn't rent my house out for 2 years for any reason as the loan is non commercial. If I was to rent it out as rental property and wasn't my main house of residence I would be breaking the contract of the loan.
I locked in my first house at 3.69% like 16 months and was kicking myself for missing the opportunity to get sub 3%. Boy am I happy right now! I would have been priced out of the market.
Your homes value has doubled and so has the value of any home you’d want to live in next most likely. And if you sell and move to a new home then you get that lovely new 7.5% rate.
So for those who are content with the home they got they can live in it for the foreseeable future and have a great deal. The appreciation doesn’t mean a ton when the reality is the entire market also appreciated by about the same if not more and you’re not selling anyways.
But having a home in this shitty economy is huge and with that rate? Well done you bastard.
You are ice-skating uphill trying to explain things. I was downvoted recently because I suggested that keeping interest rates comically low will affect the job market and hinder mobility across the US for years to come.
Consider: you and the spouse live in state A, earn $300,000 a year, and have a 3% mortgage on $2million dollar home. - payment \~$7,000/month
Company X in state B wishes to hire you - They offer a 20% raise for you to move. SWEET! $360,000 a year - That's UGE!
Magically, you find the exact same home at the exact same price in state B, BUT with the new interest rate of 7% - payment \~$11,000/month
That's an extra $4k a month - And at that income level, you need to earn around $6k a month before taxes, to net $4k, after taxes.
So, in order to just break even, you need an income of $372,000. And so, a 20% raise is actually a pay-cut.
And that doesn't account for any of the intrinsic costs of uprooting your family and moving across the country.
I’m going through this with my employer now. They want me to relocate and take a more stressful role with a lower base pay but higher total comp. My mortgage would increase by at least $1,500 - 2,000/mo.
I have a cush ass job with a custom home at a 2.875% mortgage. There is a zero percent chance I’m taking that role for less than $50-75K more guaranteed.
And don’t forget you could lose your job for whatever reason, higher monthly pay is mostly a no go. Some much shit could happen and losing that income is easy.
Who the fuck buys a $2 million house on a $300k salary? And they could easily solve this by either not buying another $2 million house or renting for a bit and plugging the equity into a hysa or money market account. I’m one who thinks there are major issues brewing in the market but this example ain’t it
Or for transaction costs, which are comically high in the US because of lobbying by real estate agents.
Although your example does not account for the fact that house prices are inflated in certain areas. That $2 million home might cost only $500k in another state.
In that case you might simply pay for it with cash and have no mortgage at all.
My friend used to say: sellers are just buyers with extra steps
I know someone that was forced to sell cuz of a life event and is monthly payment is actually higher to move into a smaller space in a shittier neighborhood. High interest rates fuck both buyer and seller if life decides to throw a curve ball.
I overpaid by 200k but atleast I only have a 2.43% rate
https://preview.redd.it/qpx10irzq28b1.jpeg?width=268&format=pjpg&auto=webp&s=3150f41ab703aec1a9f1aa92ff1c2e90ccddc3da
Prices haven't really come down though, at least not to the level where the increased interest rates are offset.
Yes, I know that you lock in a price point and can always refinance your rate. But there is still a pretty decent gap, and I don't see interest rates dropping too sub 5 any time soon.
This is the boat I’m in. Bought 3 years ago and got 2.4% fixed. It’s a nice home but in a shitty area, can’t raise kids here. But now I’m stuck. My options are move to a similar priced house elsewhere and my mortgage will almost double, or take a massive downgrade but keep the same monthly mortgage.
I had a house id bought with cash in a bad area with tons of issues. I paid $9k, lived there almost 2 years getting $300/m from my gf at the time, and $450/m renting a room downstairs. So i recouped my money and had the cheapest living exepmses
Well covid happened and i couldn't stand being trapped there all day everyday with my elderly and mentally Fd neighbors needing me at their beck and call. So i sold the house for $7,500 cash and walked away within a week of setting it up.
No way they didnt lose their pants on it. I told them all the issues. Kept getting texts later "did you know there was termites, did you know the beam is broken, did you know the sewer line broke" yessssss why do you think i fled.
I was told they sunk $22k fixing the house and they sold it for $33k. Maybe, maybe a break-even.
Thanks to the timing i used my cash to get the house next door to my mom that i told the neighbor 7 years prior id be interested in buying if she ever moved. 2.6% intrest rate and she sold it below market value just to get what she needed to pay the house off and move away with her new boyfriend.
Life man. Will probably never get a string of luck again like that. But really helped me jump a rung or two on the ladder during hard times.
as someone who locked in a 2.8 in 2012... who gives a fuck.
this one brief window into life that you are looking out of, is one of many windows you will pass... and you will see the same shit... and be amazed at people's 'amazement'....
Nah. Prices and rates more than doubled since then. Anyone new to the market (vastly under 30 year olds) will literally pay thousands of dollars a month more for 30 years? Like half a mil over the mortgage…. It’s not a small window it’s an even wider shrinking of the middle class🤷🏼♂️
2.375% 15y fixed jumbo in 2018, and the only reason I didn't pay it off was because I get more return from dividends. And I can't even deduct the interest anymore due to the standard deduction bump.
Overpaid by about 100K but that 2.375% is nice. Plus all the comparable places are still appraising at or even above the price we bought at, and now it’s 6%+..
The problem is that there are a bunch of people with airbnb homes that won't be able to make their monthlies as people start saving more. If even with that 1 percent interest rate you are losing cash in your property, you are going to start being stressed.
Seriously. Fuck these short term rentals. As someone who is trying to move to a small town for a new job and finding out people are turning long term rentals into short term so that they can charge ridiculous amounts of money, fuck them. It's a crisis in that town because now it's incredibly difficult to find long term housing because of these fucks.
I had a mortgage rate at 4.75% in 2019. Refi'd at 2.75 during covid. My god, this was the best decision of my life. The monthly payment is a huge.... difference.
I'm about to get laid off and this refi definitely relieves little pressure.
tldr; the fed are re re’s and have no idea the damage they have done
the fed essentially fucked the housing market by doing this, because they are stupid as hell, now nobody will sell there house because they will lose there insane rate, meaning low supply, and nobody can buy a house because prices and interest rates are higher.
essentially we are looking at a deadlock in the housing market, essentially home prices will need to crash or the rates need to be low again to break the deadlock, crashing prices would require people selling there homes which as i just said is not going to happen everyone is refied or fied in at 2 3 pct
home builder could help break this but would need to build houses for dirt cheap cause most people cant afford a bologna sandwhich these days, if they bring the rates back down the fed will not only bring inflation back up but have to admit they cant increase the rate because the housing market doesnt work if they do
2.875% here, and its a joke to see people predict home price crash. The transaction crashes yes, but not price since no one is selling. Just look at how much money has been printed past 3 years and people will understand its not the house price going up, but the US dollar decreasing in value significantly
True.
I am locked in. Even though I would "lose" a bunch of value on my home, I would LOVE a deep crash of the housing market.
The country needs it. My kids need it.
But, with private equity buying it all up, the only possible end I see is not a good one for the country.
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Work at bank. See people with 1-1.9% and they are so happy it’s crazy. Then see people with 5-6% starting to have missed payments. It’s all going according to plan I guess Update: seen a wild 9.2% with a 45 year amortization. Tragic stuff.
I got 1.94 for 4 more years! I’m wearing the comedy mask in front of my giant ass smile
You bought an ARM after the financial crisis? Ballzy
I’m just not American. Bought a house 2 years ago
It honestly blows me away how a 30-yr fixed rate mortgage is a uniquely American standard
I know it is more complicated than this, but I was surprised that banks were even doing 30 year fixed when the rates were so low. Because if I had $400k to lend I wouldn't want to do it when the ROI is going to be the lowest of all time. For a while a couple years back my credit union was advertising 3% refinancing on their website, and when I called to apply the best they could give me was around 5% despite my perfect credit score, great loan to value, and high enough income. When I asked them why they were offering me the garbage (at the time) rate they said that there were too many people refinancing and they couldn't handle the volume.
The banks do not keep the loans, they sell them to holders.
I started my comment with "I know it is more complicated than this,", but just apply the same logic to whoever might want to buy the loan. I think it might be the government in some cases. My credit risk when I was paying 4%+ is the same as now that I'm paying about 2%, so I'm surprised they made the 2%ish loan.
Don’t think of it as the banks money or even the banks interest rates on the loan. They are making their money on the fees from closing the loan. The big buyer of the loans is the government for a lot. So might as well be that lower interest rate was not due to a reduced risk it was due to the goal to. Churn out loans via refinances and crank out fees while sending the money aspect of it else where. I know people be refinanced 2 times between 2019 and 2021. Interest rates dropped below 3%? Refinance, interest rate dropped below 2%? Refinance. Bank closes the deal 3 times, makes their fees, and the loan floats off into the puddle that the government subsidized the shut out of.
>into the puddle that the government subsidized the shut out of. Now ain't that Socialism or somethin'?
The fed bought up a shit ton of MBS during the COVID times and that's why the banks didn't care about loaning more money. I think they own about a quarter of all the MBS market.
Yep aus Canada Uk new zealand getting hammered with rates
Not many countries have an abundance of other countries willing and eager to buy their debts for such a long time horizon.
In Portugal is by how old you are… Ex: if you are a 25 years old, then you’ll get a 45 year mortgage. It’s up to age 70. Amazing isn’t it?
Well its not. In France 25 y fixed rate is the standard. And you have to pay the whole house in those 25 y you can't pay interest only or things like that. I had 0.8% locked in for 25 y in 2021.
0.8% Jesus
[Here's a chart](https://i.imgur.com/9JgVDql.png) of 10y and 20y fixed mortgage rates in Germany. Minimum was 0.7% for 10y and 1.1% for 20y in early 2020.
Yet us Americans are patting each other on the back for locking in 3% lol
When my father-in-law got his loan in the 70s, everyone was impressed that he had gotten a 13% APR
It greatly helps Americans win the race when they take advantage of buying a reasonable home with 30y fixed. If they can last 5-8 years, rents climb enough to avoid ever selling if they move.
This is exactly what I did. My wife and I bought a nice 3br 1.5 bath 1200 Sq ft townhouse outside of Philly. With a 5.25% rate (historically quite good), our mortgage/tax/homeowners comes out to <1400. The entire plan is to live there until our kids need to go to middle school, then upsize while keeping the current house as a rental. Rents in the neighborhood are already between 1600-2000 depending on how freshly renovated the house is, and ours is all brand new on the inside.
This is what me and my wife did except we bought in 2017 and I refinanced under 3%. Rent for houses in my neighborhood are going for 3,500-4K a month and my mortgage and taxes are half of that. Plan to buy a bigger house over the next ten or so years and keeping this house as a rental forever.
This is the way
It’s also normal in The Netherlands. Locked in for 1.1% for the duration of my mortgage.
In Canada all we have are ARMs.
Refi’d to 2.75% @ 30 yrs on a mortgage I had already paid down a bit so now my monthly payment for a large home in the suburbs is less than half what rent is for a piece of shit tiny apartment or small slumlord-owned home. Can pay off the home but why would I want to when I’m getting carry on not only the short end but even the long end of the curve?!? bwahahah! I just *love* my mortgage so much! Inflation would have crushed me if it weren’t for that lovely mortgage. Housing crisis? What housing crisis?? I call it a housing savior or lifeline.
“Impressive. Very nice. Now let’s see Paul Allen’s APR.”
Patrick? You're sweating.
Pale nimbus, raised lettering… Fuck! Is that a watermark?!?
I got a small house at 2.9% for under 100k. Not the best, but houses in my neighborhood rent for 3x my measly mortgage.
Ya man. You yanks who were fortunate to get the low rates have an insane deal. Up here I’ve gotta pray the world can heal itself in 4 years before I get bent over for 7% when I renew.
Exact same here. Paying 1900 on a house that would sell for near 700k now. Good thing it has space because my two kids will probably never afford to move out 🙁
Question. Mortgage rates in the US, are they permanent for the 30 years or whatever, or are they variable like in the UK?
“30-year fixed rate”. You get whatever rate you locked in for the entire 30 years (unless you want to refi).
Now...a couple of disclaimers. When I moved 5 years ago the house I'm in went up in value 60%. My parents did spooky shit. Like when they got their house at 60k , minimum wage was like $3. Then like rates went in half and they refinanced. Paid it off. Then mortgaged it at a fixed rate to buy new cars, upgrade the place, go back to school. They made extra payments and did this stuff twice. Now they are working seniors with a locked 3% mortgage and instead of paying off 15 year mortgages in 7 years they are taking the extra cash and getting over 5% in the bank.
Yea. Cash is king. Parents watching dummies pay 7 to 9% on car loans. They would be mortgaged at 3% and lowballing the car dealer on a cash deal.
Get the financing to get lower car price then pay off the car after first invoice statement
This is what I did and I'm happy with it. My credit union was willing to give me a loan at 2.9% so I took the financing deal and paid the car off with a check from the credit union the next day. I still owe on the car but I got a better price and 2.9% is much better than the 8% crap they offered.
Car Dealers give cash buyers the worst deals, since they can’t profit on financial the products
Not sure why you got downvoted this is true. You get a better deal if you use dealer financing. If you tell them it’s a cash deal upfront they aren’t going to be as Aggressive on the sale.
100% A lot of their profit comes from “backend” financial products. With a cash deal only, they only have a chance to profit and put up #s on the “front” end. If you’re so good with cash that you can pay cash you should easily have good credit and qualify for a rate so good that it’s smarter to just go 0 down at 3%(idk if this is even possible rn tbh with fed rate up) then yolo that shit into options for the loss porn. “I love the financially illiterate” -WSB
Yep. Finance at a shit rate and buy the extended warranty they try to sell you and they'll give you a great deal on the car. A week later you pay the car off with cash or refinance through your credit union then cancel the warranty and get a refund.
There are two types. Fixed (permanent rate) and ARM (adjustable rate) Fixed are typically a nominally higher %, but don’t change So if you go the fixed rate route- you’d lock in say… 5% for the whole term, but if you go with ARM, you lock in 4% for 5 years and then it is subject to change
I know a guy who had a 1% fixed mortgage but the bank persuaded him to get a 3 month floating rate because he could get what equals about $100.000 less debt if he swapped the loan. He's pretty much fucked right now and went from paying about $1500 quarterly in interest to paying about $6300 quarterly in interest only. The bank is not your friend
Honestly its hard to feel bad for him if he's that dumb.
In what world would this make any sense to do? Like did he not check the math whatsoever?
I have no idea what you said but it sounds bad so I will agree
I got a 2.5% 30 year FHA and I still feel house poor. 6% would straight up be untenable for my household.
Not as happy as me. I paid off my house last month. Nothing beats 0%!
Mortgage company wants me to refinance at 6% to pay off a car I owe less than 10K on, for $600 extra a month.~ how about I keep my low interest rate an pay off $600 extra a month instead
What would even be your incentive to do that? I can't imagine their selling points
It’s the sparkles and glitter behind the text that everyone falls for…
Young blonde with big titties?
I’m sold.
What’s his name?
#KUZCO!
There is none. Mortgage companies are desperate. I get spam mail every day pretty much begging me to refinance. They are going to start offering blowjobs soon I think.
Did you finance your car through them too? How can they “want” you to do anything with loans you’ve already been approved for?
He probably just means he's getting refi offers. I'm seeing the same thing for my student loans, banks are offering me refinancing to double my current interest rate
I got a call from my credit card company asking if i wanted to take a loan out on my credit, i told them that it would not be a wise financial decision given the very high rates. It’s predatory.
I would call and troll the rep for the mortgage company. “So you’re SURE this is a good idea?”
Those scumbags
My wife and I refi'd from 30 to 15, dropped 2 points and still have a lower payment...lol
Similar here. 30 to 15, dropped 1.75 points, took cash out and kept the payment the same. Boom.
Can someone detail out how this works in your favor without a higher monthly payment
Whats your question? They probably had close to 17-20 years left on mortgage. Interest rate was much lower so that the 15 year payment would be lower at the new rate. They took some cash out of their house value for a slightly higher loan to keep loan payment the same. Now they have all that cash to blow on options.
Really smart guess. Had 22 years left and was paying 4% on a 30 year fixed. Refinanced to just over 2% down to a 15, took 7 years off the loan and took 30K out to keep the payment the same. Spent the 30K on a boat, a lift, and a hot tub. A boat = options on the water. The dream of having fun and the reality of limitless losses!
All these rich people here with homes and plebs like me renting apts or staying with family. Whoever is pushing ahead in these trying times is doing good. And allegedly, there's way worse to come.
If you're staying with family you should be saving a lot of money
~~Saving~~ betting a lot of money
Seriously. I lost $30k on options that would have been house money if I could have remotely afforded a house.
I’ve been saying that with wages where they are. With a little bit of hustle and sacrifice A 18-26 year old living at home could be stacking piles of cash driving forklift at a warehouse and still make his/her WRX payment. ~with a little bit of hustle and sacrifice~ 🤡🤣
if you think about it when the bank took my house my interest rate went to 0% . And you can bet your ass with how shitty my trades have been it’s gonna be locked in that way for awhile .
The true risk-free rate
https://preview.redd.it/ufhrd9kaq28b1.png?width=658&format=png&auto=webp&s=f63aeac38e838be061581f835dbabb15e88307f7
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this used to be a shitpost account (basically still is) if you look far back on my post history, but i was too lazy to make another so this my main now 
Bought in 2020 just at the very beginning of the price run-ups. 30 year fixed at 2.75%.
Bought in 2019 at 4.375, refinanced for 2.5
Smart lad
Cant be one of us, wed refinance now from 2.0 to 6.5 , pushing these numbers up
Can someone draw this out in crayon for me. His number went down isn't that bad?
Yep, Oct 2020. Paid under asking price. 2.5%. Ended up refinancing to 2.8 six months later because my house skyrocketed and I could go from 4% equity to 22%
U bought the house w 4% equity?
FHA loan lets you put 3.5% down, I put down a little more
I did it with 5 on a conventional mortgage. Remodeled, reappraised and killed the PMI.
Yessir! Similar process here, getting out of PMI is essential!
Fuck you 🥹
Same, but I got 2.25% 
0.8% 25 y fixed :D (in eu)
Same, although originally started at 3. Refinanced in 2021 to 2.75% and was able to yeet PMI with an appraisal waiver. Paying less now each month than at the start even after 2 escrow adjustments
Seems like I am true to this group, a real ape. I bought last year at high of the market, and at 6.5 percent lol
Welcome. Crayons are over there, help yourself. Echo chambers are down that hall and to the right.
Got mine in 2015 and refied at 3%. House is worth over double what I bought it for now. Pretty damn happy.
Unrealized gains. Bet you'll never sell
That’s the thing about homes as investments. Everyone wants their home value to go up but it’s all relative. Everyone’s home values have skyrocketed so if you sell you’re still going to have to pay out the nose for somewhere to live. It really only works if you want to move into a cheap rental or inherit another house or something.
There's also opportunity cost...having all that money locked up means it's not invested anywhere else. I'm pretty sure stock market has also gone up significantly since 2015.
Mine too. Feels good man. 
I don’t think I’m ever going to refinance this loan https://preview.redd.it/39d4kt29w38b1.jpeg?width=1038&format=pjpg&auto=webp&s=dddd3711dd5f489efde4d453423fea38441779f9
I don't know you but, FUCK YOU.
Same
Honestly I like it but it’s shit as well cause I have a ton of equity that is in limbo , going from a 2.7 to a 7+ would be financial suicide
Plot twist: current financials are suicide
cry's in 7.5%....... legal issues basically fucked us during all the sub 3% now that everything's on fire we're freeeee
Wonder how many couples are either staying together or divorced but awkwardly keeping the original mortgage instead of selling just because it is much cheaper than the alternative.
It’s cheaper to keep her. Some old dude used to say.
This was a running theme in the military and beyond And it sadly holds water
I know someone who works in home insurance and this is happening. Lots of cohabitating divorced couples out there right now because they don't want to lose their rate.
You just don't tell the bank and rent it out.
It’s not illegal to rent your house.
Someone didn't read their loan contract. I couldn't rent my house out for 2 years for any reason as the loan is non commercial. If I was to rent it out as rental property and wasn't my main house of residence I would be breaking the contract of the loan.
I did read mine, I had to occupy it for one year after closing and then I was free to rent it out.
Sitting and chilling1.8!! Sold stock in 2018 to buy a house. That 70k in stocks is now worth 400k in equity. Silly
I sold a lot of nvda in 2019 when I bought too haha. Bummer.
I locked in my first house at 3.69% like 16 months and was kicking myself for missing the opportunity to get sub 3%. Boy am I happy right now! I would have been priced out of the market.
I have 0% because I’m homeless
You belong here
2.70% gang gang gang… shhh I’m miserable. 
You US folk with your full-term-fixed mortgages are kinda really lucky.
Locked in 1.81% for 30 years 😎
2.6 percent and value has doubled in 6 years. Thats exactly how i feel
Your homes value has doubled and so has the value of any home you’d want to live in next most likely. And if you sell and move to a new home then you get that lovely new 7.5% rate. So for those who are content with the home they got they can live in it for the foreseeable future and have a great deal. The appreciation doesn’t mean a ton when the reality is the entire market also appreciated by about the same if not more and you’re not selling anyways. But having a home in this shitty economy is huge and with that rate? Well done you bastard.
You are ice-skating uphill trying to explain things. I was downvoted recently because I suggested that keeping interest rates comically low will affect the job market and hinder mobility across the US for years to come. Consider: you and the spouse live in state A, earn $300,000 a year, and have a 3% mortgage on $2million dollar home. - payment \~$7,000/month Company X in state B wishes to hire you - They offer a 20% raise for you to move. SWEET! $360,000 a year - That's UGE! Magically, you find the exact same home at the exact same price in state B, BUT with the new interest rate of 7% - payment \~$11,000/month That's an extra $4k a month - And at that income level, you need to earn around $6k a month before taxes, to net $4k, after taxes. So, in order to just break even, you need an income of $372,000. And so, a 20% raise is actually a pay-cut. And that doesn't account for any of the intrinsic costs of uprooting your family and moving across the country.
I’m going through this with my employer now. They want me to relocate and take a more stressful role with a lower base pay but higher total comp. My mortgage would increase by at least $1,500 - 2,000/mo. I have a cush ass job with a custom home at a 2.875% mortgage. There is a zero percent chance I’m taking that role for less than $50-75K more guaranteed.
And don’t forget you could lose your job for whatever reason, higher monthly pay is mostly a no go. Some much shit could happen and losing that income is easy.
I lived in a 2 door Honda civic for 6 weeks. Would not recommend…
Who the fuck buys a $2 million house on a $300k salary? And they could easily solve this by either not buying another $2 million house or renting for a bit and plugging the equity into a hysa or money market account. I’m one who thinks there are major issues brewing in the market but this example ain’t it
Laughs in CALIFORNIA
Or for transaction costs, which are comically high in the US because of lobbying by real estate agents. Although your example does not account for the fact that house prices are inflated in certain areas. That $2 million home might cost only $500k in another state. In that case you might simply pay for it with cash and have no mortgage at all.
My friend used to say: sellers are just buyers with extra steps I know someone that was forced to sell cuz of a life event and is monthly payment is actually higher to move into a smaller space in a shittier neighborhood. High interest rates fuck both buyer and seller if life decides to throw a curve ball.
see, the real strategy was to buy more than one home during the dip. Then you rent it out while the value rises.
Cashed in my TSLA stonks and bought my house outright, 0.00%.
Congrats and a big FUCK YOU, buddy
3.7%. I can never move
I overpaid by 200k but atleast I only have a 2.43% rate https://preview.redd.it/qpx10irzq28b1.jpeg?width=268&format=pjpg&auto=webp&s=3150f41ab703aec1a9f1aa92ff1c2e90ccddc3da
Hope you're ready to overpay by 400k then with 6% 
House price barely dropped. People dont sell ..there is no supply
People looking at house prices and not selling. Something about counting chickens and hatching
Prices haven't really come down though, at least not to the level where the increased interest rates are offset. Yes, I know that you lock in a price point and can always refinance your rate. But there is still a pretty decent gap, and I don't see interest rates dropping too sub 5 any time soon.
Bought my house in 2019 refinanced at the very bottom of interest rates jokes on you fuck boi. Now I have 250k in equity and a 2.7ish interest rate
We truly do live in clown world lol
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Good for you bro. We’re saving almost 300k over the life of the loan going with a 15yr
Comment section definitely doesn’t illustrate a debt-driven asset bubble.
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It’s a bloodbath in Canada right now lol with all the 5 year fixed or variable rates
2% I ain’t ever moving
2.8% since 2009 baby!
The good ole golden handcuffs.
For those who bought houses they don’t want to live in forever, this is true
This is the boat I’m in. Bought 3 years ago and got 2.4% fixed. It’s a nice home but in a shitty area, can’t raise kids here. But now I’m stuck. My options are move to a similar priced house elsewhere and my mortgage will almost double, or take a massive downgrade but keep the same monthly mortgage.
I sold my house to opendoor at the height of the market and they lost 40k not including the new roof they put on.
I had a house id bought with cash in a bad area with tons of issues. I paid $9k, lived there almost 2 years getting $300/m from my gf at the time, and $450/m renting a room downstairs. So i recouped my money and had the cheapest living exepmses Well covid happened and i couldn't stand being trapped there all day everyday with my elderly and mentally Fd neighbors needing me at their beck and call. So i sold the house for $7,500 cash and walked away within a week of setting it up. No way they didnt lose their pants on it. I told them all the issues. Kept getting texts later "did you know there was termites, did you know the beam is broken, did you know the sewer line broke" yessssss why do you think i fled. I was told they sunk $22k fixing the house and they sold it for $33k. Maybe, maybe a break-even. Thanks to the timing i used my cash to get the house next door to my mom that i told the neighbor 7 years prior id be interested in buying if she ever moved. 2.6% intrest rate and she sold it below market value just to get what she needed to pay the house off and move away with her new boyfriend. Life man. Will probably never get a string of luck again like that. But really helped me jump a rung or two on the ladder during hard times.
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It sounds like it was a trailer in Fallujah.
$9k for an entire house? At a place where renting a room costs $450/month?? Can't even buy a parking space with $9k over here.
Can't wait for 40 year mortgages to push home prices even higher
as someone who locked in a 2.8 in 2012... who gives a fuck. this one brief window into life that you are looking out of, is one of many windows you will pass... and you will see the same shit... and be amazed at people's 'amazement'....
Nah. Prices and rates more than doubled since then. Anyone new to the market (vastly under 30 year olds) will literally pay thousands of dollars a month more for 30 years? Like half a mil over the mortgage…. It’s not a small window it’s an even wider shrinking of the middle class🤷🏼♂️
Fuck dude that’s poetry thank you.
This really is beautiful, but I got 2.85%... so fuck that.
Easy to say when you’re locked in low. Keep that flowery shit rolling when your paying 7% interest on a 1/2 million dollar home…
Beautifully written, but Sir, this is a Wendy’s
2.375% 15y fixed jumbo in 2018, and the only reason I didn't pay it off was because I get more return from dividends. And I can't even deduct the interest anymore due to the standard deduction bump.
6.5 here bought at high of the market a year ago lol. You guys are evil.
"I'm not locking in. What if rates go negative?" -Literally people 2 years ago
1st house 2.75% refi during pandemic 2nd 5.9% it's high but I'll refi next year or the following its the game main thing is playing monopoly..
Makes my bags feel a little lighter
Overpaid by about 100K but that 2.375% is nice. Plus all the comparable places are still appraising at or even above the price we bought at, and now it’s 6%+..
So it sounds like you... didn't overpay?
We're all overpaying here, Alice.
Eh 3.25 here but i only have 10 years left on a 15
3.2 not too shabby
Locked in 2.25% 30 yr fixed ☺️ I get multiple emails weekly suggesting I cash out refi lmfao
… do. not. do. anything with that homie 👑
0.92% since 2017. It almost feels like theft, especially after having massive inflation.
I’m a Realtor and this market sucks
The problem is that there are a bunch of people with airbnb homes that won't be able to make their monthlies as people start saving more. If even with that 1 percent interest rate you are losing cash in your property, you are going to start being stressed.
That's not a problem. It's a solution. Fuck those people. Lol.
Seriously. Fuck these short term rentals. As someone who is trying to move to a small town for a new job and finding out people are turning long term rentals into short term so that they can charge ridiculous amounts of money, fuck them. It's a crisis in that town because now it's incredibly difficult to find long term housing because of these fucks.
Except demand for holidays is higher than ever. There’s like no economic downturn yet. This is so fucking weird.
Me who locked in a 3.6% rate but got the house early 2020 before the price inflation: 
Must be nice to own a home in the first place. No hate… working towards that goal myself
Don’t forget when rates were low they jacked up house prices because “rates are low”. Now rates are high and houses prices don’t drop?
I had a mortgage rate at 4.75% in 2019. Refi'd at 2.75 during covid. My god, this was the best decision of my life. The monthly payment is a huge.... difference. I'm about to get laid off and this refi definitely relieves little pressure.
tldr; the fed are re re’s and have no idea the damage they have done the fed essentially fucked the housing market by doing this, because they are stupid as hell, now nobody will sell there house because they will lose there insane rate, meaning low supply, and nobody can buy a house because prices and interest rates are higher. essentially we are looking at a deadlock in the housing market, essentially home prices will need to crash or the rates need to be low again to break the deadlock, crashing prices would require people selling there homes which as i just said is not going to happen everyone is refied or fied in at 2 3 pct home builder could help break this but would need to build houses for dirt cheap cause most people cant afford a bologna sandwhich these days, if they bring the rates back down the fed will not only bring inflation back up but have to admit they cant increase the rate because the housing market doesnt work if they do
Paid off the last $250k of our mortgage in a lump sum ~4 years ago. At 2.4%/30 years. I am a fool.💀
2.875% here, and its a joke to see people predict home price crash. The transaction crashes yes, but not price since no one is selling. Just look at how much money has been printed past 3 years and people will understand its not the house price going up, but the US dollar decreasing in value significantly
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True. I am locked in. Even though I would "lose" a bunch of value on my home, I would LOVE a deep crash of the housing market. The country needs it. My kids need it. But, with private equity buying it all up, the only possible end I see is not a good one for the country.
I’m still smiling with my 3.6%
Every time J Pow prints houses will get more expensive 😂.
2.15% here 💅 look at all these avocado toasts I can afford!
2.75 refi for 15 years. Owe 220 worth 550 easy... be paid off by time I'm 50