OT: How low will mortgage rates go tomorrow?
- Thread starter boomboommsu
- Start date
I got 3.5 at 15 years last month...
This is just crazy, I have a better question for you, where should I invest any extra cash I have over the next year, approx $40,000...??
This is just crazy, I have a better question for you, where should I invest any extra cash I have over the next year, approx $40,000...??
That's the million dollar question due to the fact that there is no yield to be found anywhere unless you go longer out on the maturity curve or go into lower quality credits. If you want risky assets, there's plenty of places. If you're looking for principal protection and yield, those options are much more limited. Happy to discuss some options with you if you're looking at potential investments.fishwater99 said:
Go find you a good insurance agent witha company with a good rep. Use a local agent with State Farm, Farm Bureau, All State, Nation wide or Alpha. Ask them to illustrate a Single Premium Whole Life. Look at the guarantee cash value and look at the non-guarantee cash value. I guarantee in the non guarantee you will have all your money back in one year. In 10 years you will have doubled your money guarantee and if you die your beneficiary will get the death benefit which will be more. The death benefit will be tax free. The cash value however will be a Modify Endowment Contract. Which means you will owe tax's on the gain and a 10% penalty if you are not 59.5 years old. I kid you not it is the most safe investment out there. Just a thought.</p>
absorb them in your loan amount on a refinace (i.e. walking away with a bigger loan amount) or pay them out of pocket (i.e. writing a bigger check at closing ) on a purchase... either way it all boils down to paying more in the beginning and getting a lower payment going forward... if you are hoping/depending on this being your last mortgage loan for a while, paying more now will end up saving you more in the long run... generally your break even point is around 2.5 to 3 years and from there it is down hill gravy....
p.s.... I've been doing this **** for a long time..
p.s.... I've been doing this **** for a long time..
Hey man if your serious about investing that money then PM me. We can probably talk about some things
Mass Mutual bro. We're paying 6.85% dividend right now on WL policies. Higher than any other company.
I just created a couple of amortization tables assuming I can refinance with 3% closing costs and the "walk away with bigger loan amount" method. I currently have a 30 yr mortgage at 6.75%. If I can get the 3.4% / 15 year mortgage and 3% closing costs, it only bumps up my P&I pmt by 100 bucks per month. Plus, I'll have roughly 13k more principle paid down at the end of my 2-3 year window vs what I would have if I didn't do anything. Sounds like a no brainer to me unless I'm overlooking something.
I'm closing on my first house in two weeks. Currently, I'm getting 3.375% 7/1 ARM. I plan on being in this house for 7-10 years so this appeared to be my best option. Too much interest in first 10 years of a 30 yr fixed with the higher rate and a 15 year fixed monthly payment was more than I want to be obligated to although I'll likely make principle reductions to equal that payment most months.
My question is, am I stuck with this rate at this point or can I get a lower one if available without having to pay extra closing costs? Would I have to drop this bank and go somewhere else? I imagine people wanting to get a better rate halfway through their closing period is fairly common, what say ye mortgage experts?
To make it semi-sports related, I'll buy a few more rounds of beers Saturday night at the Bin after the game if I can get a better rate.
My question is, am I stuck with this rate at this point or can I get a lower one if available without having to pay extra closing costs? Would I have to drop this bank and go somewhere else? I imagine people wanting to get a better rate halfway through their closing period is fairly common, what say ye mortgage experts?
To make it semi-sports related, I'll buy a few more rounds of beers Saturday night at the Bin after the game if I can get a better rate.
if you are at 6.75 on a 30yr - why not let me or someone pay your closing cost for you. No risk at that point. Either if you choose a 15yr or 25yr or 30. You could save an *** load each month and it wouldn't add anything to your principle balance.
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ETA: wouldn't</div>
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ETA: wouldn't</div>
Ask them. I must say, I think signing up for an ARM whether it be 3/1 5/1 7/1 10/1, you name it, is not a good idea. I know the initial lower rate is attractive, I get it. However, you need to think about the future. WHAT IF you aren't able to get a new home in 7-10 years? WHAT IF you are laid off? WHAT IF you suffer a major injury and your credit is ruined from hospital bills? Throughout the last decade, many people didn't think about these things and look what has happened now.
I would seriously consider going fixed. I used to be a mortgage broker during the hay day of the housing boom. I always recommended fixed rates. Thats just my opinion.
I would seriously consider going fixed. I used to be a mortgage broker during the hay day of the housing boom. I always recommended fixed rates. Thats just my opinion.
Each county is different but they do it every year, here it is the last week of August. Do some research but I am earning 18%(guaranteed) per year if they redeem the property. If they don't there is potential to get a tax deed and earn even higher rates of return. I dare you to find any investmentthat can touch it for safety and return. People don't tell others about these b/c they don't want the competition at the tax sales.With that said,don't come to South MS I don't want the competition.
On another note if anyone has any experience setting up a Self Directed IRA LLC with checkbook control PM me. I would like to purchase tax liens through this vehicle to make them totally tax free.
On another note if anyone has any experience setting up a Self Directed IRA LLC with checkbook control PM me. I would like to purchase tax liens through this vehicle to make them totally tax free.
Take it from someone who lives in that very universe on a daily basis. There's not a tax sale in Mississippi that can't be overturned on a technicality caused by a chancery clerk's office that fails to follow the law. The road is littered with the bodies of tax sale vultures that have been run over by deep pocket lenders seeking to clear clouded titles. Like taking candy from a baby, baby.
Note to tax sale vultures: "I'm coming. And Hell's coming with me."
Note to tax sale vultures: "I'm coming. And Hell's coming with me."
I understand why an ARM can be risky but with my personal situation it's not much of an issue. This is a very modest starter home that I could easily afford even if the rate jumped up to its cap of 8.375% in the eighth year. I've done a good bit of research and had help from several banking friends as well as my financial adviser and this is the best fit for me, probably not everyone though. I do appreciate your advice and understand the concern.
Anyway, it seems like the rate change today is pretty insignificant according to bankrate.com (unless I'm looking at it wrong) so I'll probably just sit tight.
Anyway, it seems like the rate change today is pretty insignificant according to bankrate.com (unless I'm looking at it wrong) so I'll probably just sit tight.
you a safety net if you ever have to fall back on it.. (the lower payment a 30 yr deal provides)... the only advantage a 15 yr deal gives you is a rate that is generally about 1/2 a point or so less than the 30... you can always pay more on your 30 each month if you want to... (principle reduction)
I'm in the mtg bidness, not financial services however... but I do hear from those who know more about investments than I do and that they advise you to go with the 30 and invest the rest each month.... maybe gold?
I'm in the mtg bidness, not financial services however... but I do hear from those who know more about investments than I do and that they advise you to go with the 30 and invest the rest each month.... maybe gold?
to the customer....for example... a $100,000 loan can be sold for $105,000 if the rate is higher than the norm...therefore the lender will pass those profits to the customer and absorb the closing costs... in other words, you can walk away with a $100,000 at 5% or a $103,000 loan at 4.5%....I've been relegated to underwriting lately and don't have access right now to today's rates but hopefully that will help you understand how that works.... don't be confused though... don't let anyone fool you into believing you are getting anything for free... you either pay it now, or much much more in the long run... there are always closing costs... it just depends on how they are going to be paid..
We used to make our money on the rate wesold.....every interest rate had a yield spread. The higher the rate the more money wegot for selling that rate. But, even then we would give the client the option to take an 1/8th or1/4% higher rate than the par rate (lowest rate without you paying points)and the difference wewould offset their closing cost. Basically wetake our portion of thefunds andgive it right back to the borrower as a lender credit.
Now in the broker world every yield spread isgiving back to the borrower. It holds the same concept but different on our end. Also, it depends on your principle balance as well. The higher the principle balance the more money you will get.... it is math at this point.
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Now in the broker world every yield spread isgiving back to the borrower. It holds the same concept but different on our end. Also, it depends on your principle balance as well. The higher the principle balance the more money you will get.... it is math at this point.
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sales tool of sorts if you want to sell within several years of purchase? I do but I`m not an authority on this at all.
put down 20% to avoid PMI, finance the rest on a 30yr 4% fixed mortgage and take your remaining investible cash and findan asset with a similar maturitythat has an after-tax yield of 4%+ (MS muni bond perhaps), effectively making the true cost of your mortgage close to 0 (assuming the same amount of your mortgage is the amount you can invest in a instrument with yield). Easier said than done considering most people don't have that type of investible cash, but with these low mortgage rates, it makes great sense to do if you can. </p>