The Trump Presidency 2.0

[BlackSmokeRisinG]

Gas was low during COVID due to low demand and the release of our strategic oil reserves. Rates will never be 2 again. Hoping for it is a fools errand. Rates of 2% while personally very beneficial, caused enormous inflation along with no payback loans and stimulus spending.

Rates below inflation don't make sense, but even before the pandemic in 2019 they hovered around 4%, which is great. In Feb 2020 just before the pandemic rates were as low as 3.25%.

 

[Kraut783]

My first house in the 80s was at 15%, which was great at the time. Our current rate is 2.5%....freaking crazy.

 

[TLDR20]

Rates below inflation don't make sense, but even before the pandemic in 2019 they hovered around 4%, which is great. In Feb 2020 just before the pandemic rates were as low as 3.25%.

I am personally benefiting from a 2.25% interest rate. However selling it and upgrading is now almost an unimaginable task.

 

[RackMaster]

I am personally benefiting from a 2.25% interest rate. However selling it and upgrading is now almost an unimaginable task.

I locked in at 3.16% before everything went to shit here. My banks current fixed is 4.69%. We wanted to sell in the spring but downsizing my parents over the fall/winter ate into that. Maybe by spring we'll be able to flip into something bigger.

 

[Devildoc]

We double paid our mortgage every month and retired it over 10 years ago, I have no clue what our rate was. We are finishing a loan against the house (HELOC) through our credit union with 2.5%. We're almost done with it.

 

[Cookie_]

I am personally benefiting from a 2.25% interest rate. However selling it and upgrading is now almost an unimaginable task.

This is the issue with my condo. Impossible to sell, so going to have to rent it out.

 

[BloodStripe]

My first house in the 80s was at 15%, which was great at the time. Our current rate is 2.5%....freaking crazy.

And the income to home price ratio was around 3. Now it’s around 7. I’d rather have 15% interest rate with a $65k home than 6% at $800k with that factor in mind.

 

[AWP]

I am not doing math for this thread. The P320 thread has me tapped out on math.

 

[TLDR20]

And the income to home price ratio was around 3. Now it’s around 7. I’d rather have 15% interest rate with a $65k home than 6% at $800k with that factor in mind.

Yeah we have a situation where we bought right as I started school in a house that was immensely affordable even on just my wife’s income. No kids, basically a nice starter home. Now with 2 kids it is tight space wise. But my mortgage payment is 1600/month. To upgrade to a bigger house in a neighborhood we like would be looking at 8500/month. In 2020-2021 those same mortgages would have been about half. We probably should have stretched then and been house poor.

 

[ThunderHorse]

Yeah we have a situation where we bought right as I started school in a house that was immensely affordable even on just my wife’s income. No kids, basically a nice starter home. Now with 2 kids it is tight space wise. But my mortgage payment is 1600/month. To upgrade to a bigger house in a neighborhood we like would be looking at 8500/month. In 2020-2021 those same mortgages would have been about half. We probably should have stretched then and been house poor.

Jumping straight into a 1.5M house is a bit of a choice though. There's plenty of things that would suit just right in the 800k range, yes more picky for neighborhoods but there's plenty of stops along the way before jumping into a retirement property.

 

[TLDR20]

Jumping straight into a 1.5M house is a bit of a choice though. There's plenty of things that would suit just right in the 800k range, yes more picky for neighborhoods but there's plenty of stops along the way before jumping into a retirement property.

850-900 is 7500 a month.

I guess I should say “was”.

Idk what it would be today. We ran the numbers 4 months ago.

 

[TLDR20]

Jumping straight into a 1.5M house is a bit of a choice though. There's plenty of things that would suit just right in the 800k range, yes more picky for neighborhoods but there's plenty of stops along the way before jumping into a retirement property.

Also. It isn’t “straight into”. Like I said we own a house now. Also houses that were 800, are now 1-2-1.3 despite higher rates.

 

[ThunderHorse]

I think we'll get pretty drawn out, but I bought 625k on a 6.25% and our payment is 4k. Should be heading towards and IRRL shortly since my wife's law school loans got forgiven.