tag:blogger.com,1999:blog-4622411633995176328.post3516166846954721875..comments2023-09-29T04:22:59.719-07:00Comments on Average Buyer: Sign of the TimesBuying Timehttp://www.blogger.com/profile/04651516505789196067noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-4622411633995176328.post-1774422289611717292008-02-21T05:47:00.000-08:002008-02-21T05:47:00.000-08:00Be careful on that "Mortgage Reports Blog" - that ...Be careful on that "Mortgage Reports Blog" - that guy appears to be selling himself very hard. Additionally, he is offering some very tainted advice that is NOT true.<BR/><BR/>Example: He's advocating you use a 30-year loan vs. a 15 year loan, assuming you can pay at a 15 year payment. He then recommends you invest the difference ($467 in his example) into an investment account. He describes the beauty of the arrangement that you get the mortgage deduction on all that extra mortgage interest you paid, and you build a big-fat account with cash.<BR/><BR/>So, Mr. Math conveniently forgets to include the very real taxes you are going to pay on any earnings from these "savings." He also neglects to include any accounting for investment account risk. Finally, he's projecting a rate of 5% return, as "conservative" - it is not conservative in this market.<BR/><BR/>I'm including the link, but <I>I'd suggest being really careful with anyone who has "discovered" new truths about finance and taxes, yet is not qualified in either area.</I><BR/><BR/>http://www.themortgagereports.com/2006/02/the_15year_mort.html<BR/><BR/>You don't get something for nothing. Paying more interest to a bank in order to save a fraction of that interest in taxes is a fool's game.<BR/><BR/>The best lie is sprinkled with truth. Saving is good, reducing taxes is good. This plan is a partial dud.<BR/><BR/>-EdUnknownhttps://www.blogger.com/profile/00052772658304651749noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-89810102561076489152008-02-20T12:28:00.000-08:002008-02-20T12:28:00.000-08:00Here's a nice summary of why mortgage rates have b...Here's a nice summary of why mortgage rates have been jumping around over the past month:<BR/><BR/><A HREF="http://www.themortgagereports.com/2008/02/you-are-about-t.html#more" REL="nofollow">The Mortgage Reports Blog</A>mbchttps://www.blogger.com/profile/13387123955997273665noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-20199772121035830732008-02-20T10:06:00.000-08:002008-02-20T10:06:00.000-08:00"When people cheer a cut in the over night rates, ..."When people cheer a cut in the over night rates, they really have no idea what they asking for do they?"<BR/><BR/>Generally, no, I don't think they do.patient renterhttps://www.blogger.com/profile/17790407105234257876noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-76129583622055556522008-02-20T09:06:00.000-08:002008-02-20T09:06:00.000-08:00cpi report doesn't help anyone looking for a 30y f...cpi report doesn't help anyone looking for a 30y fixed. G - if we get a good deflationary scare the rates will probably dip again.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-84209403865752365412008-02-20T08:22:00.000-08:002008-02-20T08:22:00.000-08:00They just took another jump this morning. So much ...They just took another jump this morning. So much for all those people thinking they were going to be able to refi into a another low rate fixed. When people cheer a cut in the over night rates, they really have no idea what they asking for do they?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-91917171820075698822008-02-19T17:12:00.000-08:002008-02-19T17:12:00.000-08:00Mortgage rates have really been rising the past co...Mortgage rates have really been rising the past couple of weeks. I was fortunate to be in the middle of refinancing and was able to lock in a 4.875% 30-year rate (1.125 points) when rates bottomed out on January 23 right after the Fed's 0.75% rate cut. Late that day the stock market shot up, taking mortgage rates with it, and the rates have been trending up ever since. Currently, 30-year fixed rates are around 6.125 - 6.25 percent.mbchttps://www.blogger.com/profile/13387123955997273665noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-44459120283172554032008-02-19T12:14:00.000-08:002008-02-19T12:14:00.000-08:00I just did a search for a 30 yr fixed jumbo at 500...I just did a search for a 30 yr fixed jumbo at 500,000 with 20% down and got 9 results. Almost all of them had interest rates well into the 7's, and a couple in the 8s.G Spot1https://www.blogger.com/profile/09884356085701505055noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-11187386834310548882008-02-19T11:03:00.000-08:002008-02-19T11:03:00.000-08:00BT - I like those numbers too. I doubt any seller ...BT - I like those numbers too. I doubt any seller would though, at least for now.patient renterhttps://www.blogger.com/profile/17790407105234257876noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-61605689388257706162008-02-19T10:42:00.000-08:002008-02-19T10:42:00.000-08:00Funny thing - I was opening the mail over the week...Funny thing - I was opening the mail over the weekend and got an offer for a new HELOC from Countrywide. After all the news about cutting people off it just doesn't make sense.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-67182384835511693382008-02-19T10:40:00.000-08:002008-02-19T10:40:00.000-08:00This comment has been removed by the author.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-8947155525727353902008-02-19T10:00:00.000-08:002008-02-19T10:00:00.000-08:00Although I use the 'net for rough loan price deter...Although I use the 'net for rough loan price determinations, I suspect that when the time comes, you might get slightly better pricing and service from some, but not all, local mortgage brokers. It's hard to negotiate interest rates and points with a website, but easy to do over the telephone. And despite what the brokers will tell you about everyone paying the same cost for money, interest rates and points are negotiable depending on how motivated the originator is.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-72266191129694096252008-02-19T09:16:00.000-08:002008-02-19T09:16:00.000-08:00Forgot to mention I was using the 20% downpayment ...Forgot to mention I was using the 20% downpayment option....with only 6 results....you would have thought I was looking at an I/O with 2% down. <BR/><BR/>(And it was probably obvious, but the 3.5% was annual inflation).Buying Timehttps://www.blogger.com/profile/04651516505789196067noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-59487666513762367242008-02-19T08:26:00.000-08:002008-02-19T08:26:00.000-08:00Hmmm I ran my criteria and came up with 2, Union B...Hmmm I ran my criteria and came up with 2, Union Bank and Quicken. I noticed that the only downs they would accept on a 30fixed was 5% and 20%.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-31605347730889396842008-02-19T08:18:00.000-08:002008-02-19T08:18:00.000-08:00BT, I like your thinking on those numbers >; )BT, I like your thinking on those numbers >; )Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-5524251961180875992008-02-19T07:03:00.000-08:002008-02-19T07:03:00.000-08:00While we are rather serious, I don't think the sel...While we are rather serious, I don't think the sellers are. I doubt they will accept our very resonable offer (1998 sales price plus 3.5% inflation, with another 20k bonus for some of the recent remodeling) cause it would put them underwater by about 70k.Buying Timehttps://www.blogger.com/profile/04651516505789196067noreply@blogger.comtag:blogger.com,1999:blog-4622411633995176328.post-52876801090796637272008-02-19T06:35:00.000-08:002008-02-19T06:35:00.000-08:00Looks like Mrs. and Mr. BT are getting serious! :-...Looks like Mrs. and Mr. BT are getting serious! :-)<BR/><BR/>Good luck!Anonymousnoreply@blogger.com