Mortgage rates

Discussion in 'Bullion Investing' started by medoraman, Aug 12, 2020.

  1. FryDaddyJr

    FryDaddyJr Junior Member


    you must really live in some backwoods hellhole. might as well be the inner city
     
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  3. crazyd

    crazyd Active Member

    A month ago we refinanced down 2.62% - the bank was swamped with Refi's and some new purchases. Took so long to process that the rate came down again but they would not lower it prior to closing. Still we are saving monthly money with the same payoff date. So looking forward to paying this home off before we retire.

    Its interesting as we live in a small town with wonderful amenities all around us such as a big new hospital, food shopping, amazing parks and schools, etc. But we are far away from the big city (50 min train ride) and last two years sales of homes here were stagnant as all the people wanted to nearer (or actually in) the big city. Now with many people questioning the wisdom in that - and the fact many companies will continue to allow remote working after the pandemic our home sales are ticking up again but still have a ways to go.
     
    GeorgeM likes this.
  4. GeorgeM

    GeorgeM Well-Known Member

    Congrats on your new place. You make a great point about how remote working is going to change the job market - even post-pandemic, it's going to be hard for stick-in-the-mud companies to push the previous standard of "must be present in our office to complete the job". And that will enable more professionals who are capable of remote work to domicile wherever they want, rather than living within a fixed radius of their place of employment.
     
    UncleScroge likes this.
  5. Garlicus

    Garlicus Debt is dumb, cash is king.

    Another option is to recast/re-amortize your current loan, if you have been making additional payments for a while.

    This would lower your monthly payment while retaining the same payoff date, instead of starting a new 15,20 or 30 year mortgage.

    Your lender will require a large payment at the time to do it ($5k?), but ask your lender about their specific requirements.

    No matter what route you take, make sure your mortgage is paid off before you retire.
     
    Kentucky likes this.
  6. tibor

    tibor Well-Known Member

    Here in N.E. Tenn. you rarely see for sale signs. In my neighborhood there were 3 homes for sale the last 2 months. Two of the homes sold for over 20% of asking price on the 1st day they were listed. The other house for 15%, took 4 days for that sale. Its been like this for 3 years. My house value has doubled in 5 years. With people working from home they can sell their high priced homes near where they used to work and move to more relaxed living away from big city stress.
     
    Garlicus likes this.
  7. harley bissell

    harley bissell Well-Known Member

    Land in the metro areas will be abandoned as it goes under water. Pandemic has taught the high earners how to work from home so they don't need those high priced shacks in high crime areas anymore. The markets where they go may explode for a few years but few people will benefit from their presence there.
     
  8. Jim Dale

    Jim Dale Well-Known Member

    I do live .9 miles from a paved road. Deer like to chew on our front lawn. I had to have a place big enough for 6 dogs an a cat. We do live an a mobile home that has been re-enforced for hurricanes. I have a separate building that I have a 7/2/4 speaker system that is set up with a UHD projector and over 300 movies. We also have a Generac generator that cuts on when everyone else is without electricity. If that is a "hell hole", I thank you for your words of kindness. However, I didn't mention our 2,100 sq ft brick 3 bedroom/2 bathrooms, with cherry cabinets in the kitchen and the butler's pantry and our second kitchen by our 2 car garage, all of which is in a brick home. Maybe, I'll post some pictures sometime. Again, thank you for your kind words.
     
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  9. medoraman

    medoraman Supporter! Supporter

    I understand the sentiment, but disagree on this as advice for everyone.

    I bought my house to raise the family. I have no intention of living here in retirement. I just am refinancing to 2.25% 30 year mortgage. While I pay extra both with a little higher payments than needed and paying weekly, (giving me an extra monthly payment per year), I am in no rush to pay it off. I could, if I sold some stocks and pm, but why? If I know I am not living here in retirement, why sink the money into it?

    I "get" how this is good advice to force people to not overbuy a house, and not to buy too many toys and waste your money, but it's not sound advice for everyone.
     
  10. Jim Dale

    Jim Dale Well-Known Member

    The one thing that my wife have always agreed on, is that by the time we retire, we would be totally out of debt. We are thankful that things went well for us. Now she has Facebook and I have Coin Talk. I haven't stretched out too far with coins, but every once in a while, I see something that gives me an itch, so I but it.
     
    Garlicus likes this.
  11. Garlicus

    Garlicus Debt is dumb, cash is king.

    I don't think that any financial advice is for 'everyone', but some of it can cover most people.

    Looking at the data, many, many people are not financially prepared for retirement, nor will they be. Thus, the reason that I advised that people pay off their mortgage before retiring. If you're 60 and only have $50-100k saved, Social Security is about all you will have for income. Does it make sense to use the majority of that monthly income to pay your mortgage? Yes, I know, not everyone owns a home and may have to pay rent.

    You know your situation better than anyone, so do what is best for you and your family. It sounds like you are more prepared than the majority, which is awesome. I will note, though, that by paying it off early, or making extra payments, as you are, you get that money back in equity and interest savings.


    https://www.savingadvice.com/articl...age-retirement-savings-for-those-over-60.html
    "In people aged 55-64, the Center for Retirement Research found that the median retirement account balance is $104,000. Now, there are a few pieces of context to work out here. First, these numbers are from 2017. Obviously there will be some variance, especially after the recent coronavirus crisis causing many to tap into savings they probably meant to leave untouched. Additionally, this does not mean $104k is optimal. Ideally you will have much more than this, as the idea is it is the only money you will have or need in retirement. This brings us to the last point, that these numbers aren’t indicative of the entirety of these subject’s retirement savings. This only counts 401(k)/IRA balance, so it doesn’t include any assets outside of these. So, if you hold property, cash savings, personal brokerage accounts, or anything else that isn’t included here, you want to factor that in."
     
    Last edited: Sep 9, 2020
  12. FryDaddyJr

    FryDaddyJr Junior Member


    I have a real home on 10 acres and no crime or people living check to check or siphoning gas nearby. good luck
     
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