OT - PSA - Mortgage Rates

ColbyLang

My buddy just closed 1.3 million at 6.6% with a 780+ credit score. He’s a doc so the monthly payment doesn’t sweat him. He’s far braver than me

Gulfcoastguy

He will probably refinance as soon as the rates drop:

Foghorn

ColbyLang said:

My buddy just closed 1.3 million at 6.6% with a 780+ credit score. He’s a doc so the monthly payment doesn’t sweat him. He’s far braver than me

Most docs I know can't afford that note. 

ColbyLang

Foghorn said:

ColbyLang said:

My buddy just closed 1.3 million at 6.6% with a 780+ credit score. He’s a doc so the monthly payment doesn’t sweat him. He’s far braver than me

Most docs I know can't afford that note. 

I said the same thing. Helps that his wife is a PA for a neurosurgeon 

alaskanassasin

I don't think we will see rates drop much for a few years.

fishlessman

Foghorn said:

ColbyLang said:

My buddy just closed 1.3 million at 6.6% with a 780+ credit score. He’s a doc so the monthly payment doesn’t sweat him. He’s far braver than me

Most docs I know can't afford that note. 

1.3mil was Twice the house and half the rate just 3 years ago...that in itself would make me sick for waiting

Canugghead

Back in the 80's when mortgage rate was 15% IIRC, my employer (a large financial company) gave me 3.5% employee discount, dropping the rate to 11.5%. Unlike 'murica our principal residence mortgage interest payment is not tax deductible.

fishlessman

Canugghead said:

Back in the 80's when mortgage rate was 15% IIRC, my employer (a large financial company) gave me 3.5% employee discount, dropping the rate to 11.5%. Unlike 'murica our principal residence mortgage interest payment is not tax deductible.

So I'm assuming no tax break on the lake house as well.....😁

billt01

alaskanassasin said:

I don't think we will see rates drop much for a few years.

.75 points by december

Canugghead

fishlessman said:

Canugghead said:

Back in the 80's when mortgage rate was 15% IIRC, my employer (a large financial company) gave me 3.5% employee discount, dropping the rate to 11.5%. Unlike 'murica our principal residence mortgage interest payment is not tax deductible.

So I'm assuming no tax break on the lake house as well.....😁

I'm no bean counter, but methink I do get a tax break on the lake house if I rent it out and report the rental income on my tax returns.

fishlessman

Canugghead said:

fishlessman said:

Canugghead said:

Back in the 80's when mortgage rate was 15% IIRC, my employer (a large financial company) gave me 3.5% employee discount, dropping the rate to 11.5%. Unlike 'murica our principal residence mortgage interest payment is not tax deductible.

So I'm assuming no tax break on the lake house as well.....😁

I'm no bean counter, but methink I do get a tax break on the lake house if I rent it out and report the rental income on my tax returns.

I was only talking property tax and mortgage interest declared.....😁

Botch

ColbyLang said:

My buddy just closed 1.3 million at 6.6% with a 780+ credit score. He’s a doc so the monthly payment doesn’t sweat him. He’s far braver than me

I can't remember the year, but I refinanced my house when Fixed hit 4.3%; the credit union manager who did the paperwork was just beaming when he invited me into his office, shook my hand, and told me I was the first guy he'd ever met who scored 850 (thru sheer dumb luck, on my part; I've read all the measurements on how they determine it and most of it flies over my head).  
I did manage to pay off my mortgage twelve years before retiring, which I was happy about.
Until I had my taxes done the next February, with no deductions.... Dumbshit!    

Dobie

Botch said:

ColbyLang said:

My buddy just closed 1.3 million at 6.6% with a 780+ credit score. He’s a doc so the monthly payment doesn’t sweat him. He’s far braver than me

I can't remember the year, but I refinanced my house when Fixed hit 4.3%; the credit union manager who did the paperwork was just beaming when he invited me into his office, shook my hand, and told me I was the first guy he'd ever met who scored 850 (thru sheer dumb luck, on my part; I've read all the measurements on how they determine it and most of it flies over my head).  
I did manage to pay off my mortgage twelve years before retiring, which I was happy about.
Until I had my taxes done the next February, with no deductions.... Dumbshit!    

Your tax savings would have been more than all the interest that year?

lousubcap

Just take all the savings and enjoy life-

Japanese A-5 beef and Florida Stone crab claws along with some high end red wines and champagne to wash it down.

You will enjoy the immediacy of those banquets wlel beyond the accounting experience. 

RRP

Dobie said:

Botch said:

Until I had my taxes done the next February, with no deductions.... Dumbshit!    

Your tax savings would have been more than all the interest that year?

As a bean counter and proud of I have always been amazed that people think having mortgage interest as a tax deduction is a great thing! I mean spending $1 to get back 22% or less of that $1 as a savings just baffles me! Sure it seems to kiss the wound, but it sure doesn’t make sense if you can avoid it. 

And don’t even get me started about “getting a tax refund” meaning you loaned the gubermit ALL of that refund money that was YOURS to start with and the gubermit didn’t even pay you any interest!

Ozzie_Isaac

This aught to calm the markets.  Stability and economic growth are on the horizon!  Buckle up and get ready!

Canugghead

dumb question, is it necessary to put 'Republican' under each name?

JohnInCarolina

billt01 said:

Ozzie_Isaac said:

Some people get what they vote for..

Some of the issue is the uneducated who are indoctrinated 

“The uneducated masses gave us Biden!” is the sort of hot take I’ve come to expect from you here, BillT.  Well done.

Ybabpmuts

My cousin Billy was born with a butt warble on his left bum cheek and for the first few years of his life he felt like he was sitting on a teeter totter, but one day we came across a doctor that could make a butt warble grow on his other bum cheek and things were so much better for Billy after that.

My point is that we're all just one crazy doctor away from spending our life sitting on a teeter totter.

Politics schmoliticks, we're all screwed, except cousin Billy

RRP

Ybabpmuts said:

My cousin Billy was born with a butt warble on his left bum cheek and for the first few years of his life he felt like he was sitting on a teeter totter, but one day we came across a doctor that could make a butt warble grow on his other bum cheek and things were so much better for Billy after that.

My point is that we're all just one crazy doctor away from spending our life sitting on a teeter totter.

Politics schmoliticks, we're all screwed, except cousin Billy

Stump, ol buddy ol pal….you been eatin your Oreos inside out again haven’t ya?

fishlessman

RRP said:

Dobie said:

Botch said:

Until I had my taxes done the next February, with no deductions.... Dumbshit!    

Your tax savings would have been more than all the interest that year?

As a bean counter and proud of I have always been amazed that people think having mortgage interest as a tax deduction is a great thing! I mean spending $1 to get back 22% or less of that $1 as a savings just baffles me! Sure it seems to kiss the wound, but it sure doesn’t make sense if you can avoid it. 

And don’t even get me started about “getting a tax refund” meaning you loaned the gubermit ALL of that refund money that was YOURS to start with and the gubermit didn’t even pay you any interest!

paying 22 percent on a visa for food and clothes doesnt make much sense if a mortgage is under 3 percent as its recently been. buying a cd is bettor than paying a mortgage down

dbCooper

billt01 said:

Some people get what they vote for..

Some of the issue is the uneducated who are indoctrinated 

@billt01 - To clarify, you are referring to the previous administration racking up 7+ trillion in budget deficits and stealth taxes imposed though tariffs, correct?  Here in my area of the country (predominantly farm and ranch folks) the US becoming a net importer of crops is not welcome news.  Unwise tariffs played a large role in that status.

Foghorn

RRP said:

Dobie said:

Botch said:

Until I had my taxes done the next February, with no deductions.... Dumbshit!    

Your tax savings would have been more than all the interest that year?

As a bean counter and proud of I have always been amazed that people think having mortgage interest as a tax deduction is a great thing! I mean spending $1 to get back 22% or less of that $1 as a savings just baffles me! Sure it seems to kiss the wound, but it sure doesn’t make sense if you can avoid it. 

And don’t even get me started about “getting a tax refund” meaning you loaned the gubermit ALL of that refund money that was YOURS to start with and the gubermit didn’t even pay you any interest!

I get you where the MATH is concerned.  But for MOST (definitely not all) people (including my family) it is about PSYCHOLOGY.

 Example:

If the government takes an extra $100/month when it comes time to do taxes the average person gets an extra $1200 for their return.

If the average person doesn't give it to the government they just spend $100/month more and at the end of the year they have $0 - but they got a to upgrade a few meals that year from places like Golden Corral to places like Outback Steakhouse.  I'd rather have the money every spring.

Could this same thing be done with a savings account or a CD or something where one earns some interest?  Absolutely, but very few people have the discipline for that.

I embraced my lack of discipline long ago and arranged to have a very large tax return every year.  When it comes in we pay our credit cards to zero and pay for our summer travel plans.

It may not be the best system, but it works for us.  For most people, I think that

psychology >>> math 

where personal finance is concerned.

Legume

I was always taught if you can earn more on your money than your mortgage rate, then you should invest any extra rather than pay down early.

As far as tax refunds vs payments, I usually try to not get too far either side of zero and not sweat it when I do.

As @Foghorn points out, knowing yourself is critical in choosing the right strategy for you.

Foghorn

Also helpful in times like these is knowing that the average mortgage rate over the past 50+ years is in the 6-7% range.  It's funny how people take a short term view of things.  The current mortgage rates are average.  No more.  No less.

billt01

dbCooper said:

billt01 said:

Some people get what they vote for..

Some of the issue is the uneducated who are indoctrinated 

@billt01 - To clarify, you are referring to the previous administration racking up 7+ trillion in budget deficits and stealth taxes imposed though tariffs, correct?  Here in my area of the country (predominantly farm and ranch folks) the US becoming a net importer of crops is not welcome news.  Unwise tariffs played a large role in that status.

to clarify

bdalqasmal

bdalqasmal said:

Refinancing can be a game-changer with those 30-year fixed rates, especially with inflation lurking. It's a timely reminder to seize the opportunity.

By the way, had a chat with a Mortgage Advisor York recently, and they shared some solid insights that might be worth considering.