Open House Picks: Six Months Later
Comment: Freeze! Open House Picks 10/03/08 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
Comment: Freeze!
Open House Picks 10/03/08 [Brownstoner]
Previous Six Months Later Posts [Brownstoner]
joe, i didn’t say you could always refinance. I said that over a 30-year period, it is EXTREMELY likely that it will be to your advantage to refinance at some point during that time. If your house goes down in value over 30 years, then, yes, 30-yr fixed is the product for you.
As for transaction costs, yes, they cut into your value though they are deductible. But there are other reasons to buy vs. rent. I got tired of rising rents and moving around, not being able to improve your home, etc. The list goes on…
sorry grammarians. “lots”.
fatlenny, a couple of things.
if you’re actually planning to move in 5 years you are crushing your return with transaction costs, so you should rent.
even if you’re not, the assumption that you can always refinance depends on prices going up. lot’s of people can’t move because they don’t have enough equity in their current house to make a downpayment on a new one. and lot’s of people can’t refinance, for basically the same reason, too high LTV to get a new loan.
EASILY, in five years you could end up underwater with a rising interest rate on your mortgage and no way to get out.
it’s kind of bad form now to argue your case based on how well you did in the last 10 years. you made a bet and it paid off….
What FatLenny said. The stuff about the 30 year fixed is the only mortgage that should exist is silly. If you had to pick a one size fits all mortgage and assume that people don’t have enough functional literacy with the math involved to choose for themselves, then OK get a 30 year fixed. Today it probably makes sense because long and short term are both so low, and there’s very little spread. In a different environment where long term rates are higher and you can lock in a significantly lower payment with a a 5/1 7/1 or 10/1, then an ARM is a smarter move for many. Especially if you have a reasonable expectation that in 5 or 10 years your income will be higher or that your home will be worth more or that you’ll want to sell and move.
Brickey,
You’ve lost me? How is the bank taking my house? My rent roll is crashing? That’s interesting ’cause the checks keep coming in.
And who is this wife you speak of? And more importantly, why is someone that rents calling me an idiot for the type of mortgage I have?
What am I going to do now that the bank wants to see my income? When the time comes I’m gonna show them my income you dumb f#%ck.
yeah wifey, as in youre wifey loves it when I……..You guys know the scene from boiler room when the guys is crying on the stairs like a little girl as his wife takes the kids and leaves his ass? Well the guy who gave you an ARM mortgage was like Giovani R. selling that guy a dream of being wealthy. You have been had but you just dont realize it yet.
For anyone super familiar with the area, I would love to get your impressions of Lefferts Place. I’ve walked down there a few times and it is a beautiful block, but I’d love to get more insight from anyone that lives there!
brickoven, really, is there anyone ever on here as stupid as you are??? I don’t have an ARM. You can’t seem to get that through your immensely thick skull. I wasn’t talking to you about the terms of peoples ARMs. You can’t seem to get that through your immensely thick skull.
Are you on some kind of medication?? It’s clear you can’t follow the conversation. Now just STFU before you make yourself more stupid sounding.
DIBS, 15-year or 5-year was a joke. Just trying to demonstrate how arbitrary it is to claim that 30-year is the only term that a smart person would choose. Very, very few people (especially on this site) will stay in their current home for 30 years. And even if they do, they will be financially irresponsible if they don’t refi during that time. 30-yr fixed loans, frankly, don’t make sense except for very rare circumstances.