It just means you’re weird in a good way. I’ve got about 5 years left to get there. I’ve been told the grass feels better when the payment is gone.
Home prices jump for seventh straight month in August
- Thread starter GON
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Sad. It doesn’t dip into this level of detail, but I have to wonder why the prices are going up even in the faces of mortgages… is it the BlackRock/Vanguard effect where nearly unlimited funds mean they don’t really care about mortgage rates? Their only goal at this point is to stack up 4 hotels on every property until they drain renters dry and control nearly the entire market?Seems no relief in sight for rising single family home prices. The seven plus percent 30 year mortgage rates are not impacting the steady rise in home prices.
"Home prices surged to a new record high in August as the affordability crisis continues to deepen.
Prices increased 0.4% nationally in the period from July to August on a non-seasonally adjusted basis, the S&P CoreLogic Case-Shiller index showed Tuesday.
Home prices jump for seventh straight month in August
U.S. home prices continued to march higher in August, according to S&P data, even as the housing market grapples with an ongoing spike in mortgage rates.www.foxbusiness.com
On an annual basis, prices are up 2.6% from their peak at the same time last year. It marked the highest level for the index since 1987."
Everything feels better...
GON
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SRR, no idea, but one can also look at the lack of inventory in the market, and the behavioral impact of scarcity. At this moment, nobody that purchased a home made a wrong move. Of course, things can change, but with interest rates up 300 percent from their lows 30 months ago, not many homeowners are looking to sell unless a death on the family or a new job/ job transfer.
It would not be surprising if homeowners with sub three percent mortgage and a out of area job transfer select to be long distance landlords instead of selling their home.
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yep....my wife took on our health care so with the house payment gone, health care gone, FSA gone, the non interest checking accounts (taking the direct deposits) are soaring. I've gotten lazy and just let them go up, as if to see how high they can go. The stupidity is the online accts are 4.4% apy right now. I did move some last Friday. So I tell myself, you can afford that nice SUV you want (Tahoe). But you don't need it, and in a strange way, you might not be able to afford it. What if I lost my job....that's life...lots of possibility....saw a nice M2 being trailered going home yesterday, again, you don't need one, and likely cannot afford one...but you could get it in the driveway if you wanted (you is me)
I amazes me people complain about a $400,000 house but will go out and buy $100,000 truck or $100,000 SUV without blinking an eye.
Even a $400,000 house will appreciate in value over time. The Truck or SUV will accumulate mileage and decrease in value, guaranteed.
Even a $400,000 house will appreciate in value over time. The Truck or SUV will accumulate mileage and decrease in value, guaranteed.
Yeah naturally I started home reno on a new to me home with a 6% rate.. About to sell my current home with 2.75% note..
100%. I have many ask me why I drive a 5 year old VW or why I didn’t buy my wife the fast version of her car. I just don’t like owing large amounts of money and there’s some pretty cool stuff out there that I feel comfortable paying for. I know many lease a new car every 3 year type of people. I don’t get it. Took me many years to realize it too. I used to always buy ridiculous stuff.yep....my wife took on our health care so with the house payment gone, health care gone, FSA gone, the non interest checking accounts (taking the direct deposits) are soaring. I've gotten lazy and just let them go up, as if to see how high they can go. The stupidity is the online accts are 4.4% apy right now. I did move some last Friday. So I tell myself, you can afford that nice SUV you want (Tahoe). But you don't need it, and in a strange way, you might not be able to afford it. What if I lost my job....that's life...lots of possibility....saw a nice M2 being trailered going home yesterday, again, you don't need one, and likely cannot afford one...but you could get it in the driveway if you wanted (you is me)
If they can tow it out of my driveway because I haven’t finished paying for it, it’s not really mine yet.
I have a relatively small mortgage on this place. Under 3% rate. It might FEEL good to pay it off, but that cash is earning over 5%.
Not a bad situation IMHO.
Not a bad situation IMHO.
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That's why I have to pinch myself. I'd like to get a Chevy Tahoe and it's $81k. I tell myself, I work hard enough for a Tahoe, heck, an Escalade for that matter. Then with the math, $30k down and $1027/mo for 60 mos doesn't seem to be sensible. Doubling the downpay to 60k is a more doable monthly, but is it wise? To have no payment for 8 years to suddenly that. But I deserve it!
At least given the current situation with car sales, the more we do nothing and drive what we have, the better. Just not as prestigious.
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This is advice I got in 2012 and it helped me. My rate was high like 4.75%, and a banker told me why not a ten year first lien position home equity? I said wth is that, I don't want sneaky closing costs. Told me there aren't any because it's a home equity, no title insurance. The funds are used to pay off your current mortgage, and it must be in the first position. I had a heloc at the time which had to subrogate? So I went from 4.75 to 3.5 and no fees. One year later I went from 3.5 to 3.37, no fees. The only fee is $67.50 to discharge it with the country records. Even though I thought I knew it all, that product helped me.
What was the catch....well, the rate was just below a 30 year and higher than a 15, with a 10 year amortization. But for me to get down to a better 30 year rate? it worked. also, max loan was $100k. So it was not for most.
To be honest it wasn't a game changer for me. Still paying property taxes and home owners insurance maybe I saved $900 a month. For some bizarre reason I was thinking different.But my property taxes are 9k a year
Understand. But every homeowner pays this. Paid off mortgage or not.
Bingo!
Yeah debt stinks, but but there are sweet spots when it comes to property.
I mean another way to think of it, just for a hyperfictional situation, you have a 3% or less mortgage, payment $1000 month - of course your interest paid is down the toilet, but still within reason you are paying mostly principle , so IF you have cash from a previous sale or whatever easily making more than just that interest (NOT the whole payment), you are doing just fine.
If you want to grow broke on the slow plan try saving money to pay cash for a property......especially a primary residence.
Yeah our first house in So Cal, 10% down! PMI!! We ate with the dog to get rid of that PMI ASAP. Worked. Sold it and kept rolling it forward. Not bad. Wife wanted to pay this one off. We'll see. (7 houses? Lost count!!)
I left a perfect little house in the Cambrian area of San Jose that needed nothing to a total fixer upper in Los Gatos; the worst house in the zip code. It was the bottom of the market; I lost money on Cambrian but was able to sneak into Los Gatos. The LG home was the upper limit of my purchasing power. Well, as things turned out I'm pretty happy here.
The way I see it is, you can pay your mortgage or somebody else's.
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It’s almost as if the less one borrowed, the less we feel it when paid off. I guess we felt the benefit over 15-20 years. My payment was $1105 and my wife’s aunt said, “That’s nothing!” It’s something to me. It’s as if to her, it’s a badge of honor to have a $5000+ monthly, and a disgrace to have a payment that small
We are living in interesting economic times.
Our home payment was $1,200/mo and to me that was a lot but now that’s just a car payment today. Once you pay off your home you’ll never want another mortgage. We have a 1,500sqft home and a growing family but have decided to stay put and enjoy what we have. It’s too difficult of a thing to swallow to give up your smaller paid for home for an upgrade and a payment at high interest. The idea of losing your home during a recession and job loss is too scary - especially with children. Security is peace of mind. I try to remember that 50 years ago a family of 4 or 5 in a 1,200 sqft 3BR, 1BA was the normal. If they did it we can too. I try and remind myself that a larger home is a want and not a need.
Our home payment was $1,200/mo and to me that was a lot but now that’s just a car payment today. Once you pay off your home you’ll never want another mortgage. We have a 1,500sqft home and a growing family but have decided to stay put and enjoy what we have. It’s too difficult of a thing to swallow to give up your smaller paid for home for an upgrade and a payment at high interest. The idea of losing your home during a recession and job loss is too scary - especially with children. Security is peace of mind. I try to remember that 50 years ago a family of 4 or 5 in a 1,200 sqft 3BR, 1BA was the normal. If they did it we can too. I try and remind myself that a larger home is a want and not a need.
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