Savoir Faire

Interest Rates

36 posts in this topic

Ughhhhhhhh, these interest rates are driving me crazy. Having GREAT CREDIT use to mean something back in the day ya know. Please bring back the 2.9 mortgage rates or the 2.5 car loan rates. I want a new house and a newer vehicle but I just can't see myself doing it these days. I been trying to wait it out but it isn't looking like the rates are going to drop anytime soon. 

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What you do is buy now and refinance when they go down, it’s a buyers market so take advantage of that, why pay someone’s mortgage 

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Posted (edited)

I get offers to take equity out all the time to refinance . I am not going to do it and definitely not Without a  real source of income. I think the interest rate is still doable,  but why tack on higher payments to what  I owe already! Property taxes went up and because I am escrowed for insurance and taxes it is not good for me! My May payment will be 200 more a month. 😤 Life is hard enough! 

Edited by Kali Sensual Reiki
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6 hours ago, stevie-2249 said:

What you do is buy now and refinance when they go down, it’s a buyers market so take advantage of that, why pay someone’s mortgage 

Absolutely correct.  Buy now and refinance later, especially as housing continues to increase monthly.   Other markets that don't have our growth can delay, but along cities near the I-25 & I-70 corridor, I'd buy sooner than later!

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2 hours ago, BigBaldBlk said:

Absolutely correct.  Buy now and refinance later, especially as housing continues to increase monthly.   Other markets that don't have our growth can delay, but along cities near the I-25 & I-70 corridor, I'd buy sooner than later!

how long you think ‘later’ is? i thought i wanted to buy now but w those interest rates, i have decided against buying now 

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I don’t see buying here again. $600k for a 2 bedroom in Aurora, no thanks. Not sure where to go though.🤓

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22 hours ago, stevie-2249 said:

What you do is buy now and refinance when they go down, it’s a buyers market so take advantage of that, why pay someone’s mortgage 

Steve I definitely don't want to buy now, thats the reason for this post. Interest rates are high for me because I am use to rates at 2 to 3 percent. I have been waiting for years for them to come down but they aren't budging. Only mortgage I pay is my own..............

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19 hours ago, Kali Sensual Reiki said:

I get offers to take equity out all the time to refinance . I am not going to do it and definitely not Without a  real source of income. I think the interest rate is still doable,  but why tack on higher payments to what  I owe already! Property taxes went up and because I am escrowed for insurance and taxes it is not good for me! My May payment will be 200 more a month. 😤 Life is hard enough! 

I get the same from all sorts of Lenders wanting me to take equity out and refinance. 7 percent or higher is not doable for me, not when I am use to rates twice as low. Thats why I am losing it over here. And yes, property taxes keep climbing every year, therefore if you get a fixed rate it doesn't matter, your payment is still going to increase unless you pay the extra amount towards your escrow. 

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13 hours ago, Western ~P said:

how long you think ‘later’ is? i thought i wanted to buy now but w those interest rates, i have decided against buying now 

I am right there with you on this issue. But I am noticing in my neighborhood, FOR SALE signs are popping up and I am tempted to knock on their doors and ask them WHY the all of a sudden move? I am guessing maybe they can't afford it because of the raising of property taxes. 

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11 hours ago, Audrey Astor said:

I don’t see buying here again. $600k for a 2 bedroom in Aurora, no thanks. Not sure where to go though.🤓

You can get more bang for your buck from places such as Thornton/Greeley/Commerce City/Bennett/Pueblo (LOL I know already). Those 2 bedrooms in Aurora have risen up to 800 K and higher. 

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16 hours ago, BigBaldBlk said:

Absolutely correct.  Buy now and refinance later, especially as housing continues to increase monthly.   Other markets that don't have our growth can delay, but along cities near the I-25 & I-70 corridor, I'd buy sooner than later!

Triple I been waiting for years for the interest rate to come back down to 2 percent and they are not budging. I think 3 or 4 years ago it was 4 percent. 

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I wouldn’t hold your breath waiting for 2%-3% interest rates.

I bought my first house in 1975 and paid 7.5% interest rate. Over the years interest rates climbed up to over 10% and then eventually lowered back to 7%-7.5%.

It wasn’t until recently that interest rates dropped down to the 2’s and 3’s. Consider these low rates an anomaly that won’t be repeated anytime in the near future and expect to pay anywhere from 5%-8%.

Conversly, interest rates on cars during the past 50 years have followed the same pattern.

We all want the low interest rates but I don’t see it happening.

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23 minutes ago, ilovewomen said:

I wouldn’t hold your breath waiting for 2%-3% interest rates.

I bought my first house in 1975 and paid 7.5% interest rate. Over the years interest rates climbed up to over 10% and then eventually lowered back to 7%-7.5%.

It wasn’t until recently that interest rates dropped down to the 2’s and 3’s. Consider these low rates an anomaly that won’t be repeated anytime in the near future and expect to pay anywhere from 5%-8%.

Conversly, interest rates on cars during the past 50 years have followed the same pattern.

We all want the low interest rates but I don’t see it happening.

100 percent correct!! 

See below for last 50 years or so mortgage interests rates.  Reality is that the current 7 percent is just below the 50 year average.  The 2 to 3 percent was an unsustainable lunacy that contributed greatly to the soaring home prices and overall inflation.  The answer of should one buy now, in my opinion, is it depends.  Buying to have a primary place to live and planning to stay put for at least 5 years as opposed to renting is almost always a great idea.  If the question is should you buy as an investment one guy's opinion is it is always idiotic to borrow money to invest.  You are just managing the bank's portfolio for them.  But as long as the rate of inflation on home prices is equal to or greater than the mortgage interest rates your are golden for buying as a primary residence.  As of March the year over year increase in home values was 7.4 percent, so you are golden as we speak.  Bear in mind the best way to defeat the "high" mortgage interest rates is to increase the down payment as much as possible.  Lastly bear in mind as far as the buy now refinance later theory, the instant you refi you LOSE the ability to write off mortgage interest on your taxes.  Oh and as far as increased property taxes, yes that sucks but you are going to pay those one way or the other because the landlord will pass them on if you rent.

Historical 30-year mortgage rates chart

Historical-30-Year-Mortgage-Rates_-1971-

Chart represents weekly averages for a 30-year fixed-rate mortgage. Average for 1971-2024 as of April 12, 2024. Source: Freddie Mac PMMS. (c) TheMortgageReports.com

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If you really want a ciolorado home? I say go for it!  As far as cheap goes try tornado alley( AK, LA, AL) if you can handle the heat, humidity, and those homes are beautiful!   My family and support is here so I will stay as long as I can afford to do so.

 

so..

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2.5% rates may never come again.  Fall in love with the house, date the mortgage.

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Miss a credit card payment and get totally shocked at their rate. 20%

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Interest rates are unlikely to fall to 5% and below for a few years. Purchasing a home in high season (April -Sept) you will pay the premium, Nov - Dec is the time to buy the paradox is low inventory at that time.  I waited forever for rates to fall below 10% when they did I purchased a home. 

I have 4 mortgages, 2.85%, 5%, 6% and 8%,  mortgage’s are tax deductible, credit card and car loans interest are not.

My rules, don't buy real estate unless you plan to keep it at least 7 years.

Pay off your credit cards every month.

Date the mortgage - Marry the house.

When rates fall home prices go up. Car prices are currently falling, ( tax time is usually a good time to car shop )

I am not a financial advisor, however I do have a 4 year business degree.

I admire most people and their skill sets, and I can assure you that I am not the sharpest knife in the drawer, however these things have worked for me - LONG TERM.

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I am paying mine off only to rack it up again. Teeth,  medical, chiropractor it is always necessary to me. Dental again in May. The Kali way! 😂

 

 

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Posted (edited)

On 4/19/2024 at 5:04 PM, Western ~P said:

how long you think ‘later’ is? i thought i wanted to buy now but w those interest rates, i have decided against buying now 

I know they recently bumped to 7% but if anyone keeps waiting for interest rates to drop below 5%, the equity you could accumulate NOW will more than offset the higher rate.  I purchased my first home in 2000 and the interest rates were at 9%.  They were double-digits a few years prior.

Side note, if you can get solar panels, that too will add value now and future.

Edited by BigBaldBlk
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On 4/20/2024 at 8:47 AM, ilovewomen said:

I wouldn’t hold your breath waiting for 2%-3% interest rates.

I bought my first house in 1975 and paid 7.5% interest rate. Over the years interest rates climbed up to over 10% and then eventually lowered back to 7%-7.5%.

It wasn’t until recently that interest rates dropped down to the 2’s and 3’s. Consider these low rates an anomaly that won’t be repeated anytime in the near future and expect to pay anywhere from 5%-8%.

Conversly, interest rates on cars during the past 50 years have followed the same pattern.

We all want the low interest rates but I don’t see it happening.

Every single house that I have bought/owned have all been under 3.75 percent, with the lowest being 2.5, so I am crossing my fingers in hopes that they will come back down. If not, I will use PLAN B and PLAN C LOL. As far as auto loans, ughhhhh my last vehicle is at 7 percent and its drives me nuts every damn payment I make...........................I am going to keep my fingers crossed.............

 

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On 4/20/2024 at 9:27 AM, Kali Sensual Reiki said:

If you really want a ciolorado home? I say go for it!  As far as cheap goes try tornado alley( AK, LA, AL) if you can handle the heat, humidity, and those homes are beautiful!   My family and support is here so I will stay as long as I can afford to do so.

 

so..

I simply love Colorado PERIOD........................ I could easily sell my home and move somewhere else and live more comfortable but all I hear from friends that move away is that they wish they wouldn't have moved. I feel once you move its going to be way too expensive for me to return and I am not willing to make that mistake for now..............

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On 4/24/2024 at 1:38 PM, BigBaldBlk said:

I know they recently bumped to 7% but if anyone keeps waiting for interest rates to drop below 5%, the equity you could accumulate NOW will more than offset the higher rate.  I purchased my first home in 2000 and the interest rates were at 9%.  They were double-digits a few years prior.

Side note, if you can get solar panels, that too will add value now and future.

Triple I agree, the equity that I have made will offset whatever, especially if I go for a smaller home, so I am stuck for the moment and I have to SLOW MY ROLL for the time being................Jeesh, you got me over here about to lose it just thinking about a double digit interest rate...............

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On 4/20/2024 at 2:07 PM, BoulderB said:

2.5% rates may never come again.  Fall in love with the house, date the mortgage.

LOL @ fall in love with the house and date the mortgage. Now if I could find a woman that would pay my mortgage, I would fall in love with her and date her EXCLUSIVELY ...................................... Boulder thanks, I think you have answered my question..............

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On 4/20/2024 at 4:04 PM, atadlong said:

Interest rates are unlikely to fall to 5% and below for a few years. Purchasing a home in high season (April -Sept) you will pay the premium, Nov - Dec is the time to buy the paradox is low inventory at that time.  I waited forever for rates to fall below 10% when they did I purchased a home. 

I have 4 mortgages, 2.85%, 5%, 6% and 8%,  mortgage’s are tax deductible, credit card and car loans interest are not.

My rules, don't buy real estate unless you plan to keep it at least 7 years.

Pay off your credit cards every month.

Date the mortgage - Marry the house.

When rates fall home prices go up. Car prices are currently falling, ( tax time is usually a good time to car shop )

I am not a financial advisor, however I do have a 4 year business degree.

I admire most people and their skill sets, and I can assure you that I am not the sharpest knife in the drawer, however these things have worked for me - LONG TERM.

Oh jeesh, speaking of credit cards UGHHHHH. Paying them off monthly is EXCELLENT LOL. You want to see your credit score drop 10 - 50 points LOL, miss a few payments and max it out. I am not the sharpest either but a lot of the things that you currently do, I do as well and from the looks of it, we are in OKAY shape.......... 

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On 4/20/2024 at 3:23 PM, wglide2003 said:

Miss a credit card payment and get totally shocked at their rate. 20%

Oh my goodness, miss a payment and your credit rating might take a nice dip as well. Credit cards can be good and bad for your financial well being. 

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6 hours ago, Savoir Faire said:

Every single house that I have bought/owned have all been under 3.75 percent, with the lowest being 2.5, so I am crossing my fingers in hopes that they will come back down. If not, I will use PLAN B and PLAN C LOL. As far as auto loans, ughhhhh my last vehicle is at 7 percent and its drives me nuts every damn payment I make...........................I am going to keep my fingers crossed.............

 

Wish you luck

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Pay your credit card bill every month and interest has no impact.

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On 4/26/2024 at 3:05 PM, mustang said:

Pay your credit card bill every month and interest has no impact.

Pay it off or the balance every month yes and interest has no impact what so ever.................Its a lot harder than most people think, thats why so many are big time debt....................I had a friend ask me if he should take out a second loan and I said, HECKS NO LOL because I knew how sneaky his wife was but apparently he didn't know his own wife. So he takes one out anyways to pay off a couple high interest credit cards that she had maxed out. To make a long story short, he paid off both credit cards and within 6 months, she maxed out another card at 20K. He asks me for some more advice and I said I think you can handle it all on your own............People that ask me for advice only to do the opposite make me laugh...............

 

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On 4/20/2024 at 9:26 AM, gr8owl said:

100 percent correct!! 

See below for last 50 years or so mortgage interests rates.  Reality is that the current 7 percent is just below the 50 year average.  The 2 to 3 percent was an unsustainable lunacy that contributed greatly to the soaring home prices and overall inflation.  The answer of should one buy now, in my opinion, is it depends.  Buying to have a primary place to live and planning to stay put for at least 5 years as opposed to renting is almost always a great idea.  If the question is should you buy as an investment one guy's opinion is it is always idiotic to borrow money to invest.  You are just managing the bank's portfolio for them.  But as long as the rate of inflation on home prices is equal to or greater than the mortgage interest rates your are golden for buying as a primary residence.  As of March the year over year increase in home values was 7.4 percent, so you are golden as we speak.  Bear in mind the best way to defeat the "high" mortgage interest rates is to increase the down payment as much as possible.  Lastly bear in mind as far as the buy now refinance later theory, the instant you refi you LOSE the ability to write off mortgage interest on your taxes.  Oh and as far as increased property taxes, yes that sucks but you are going to pay those one way or the other because the landlord will pass them on if you rent.

Historical 30-year mortgage rates chart

Historical-30-Year-Mortgage-Rates_-1971-

Chart represents weekly averages for a 30-year fixed-rate mortgage. Average for 1971-2024 as of April 12, 2024. Source: Freddie Mac PMMS. (c) TheMortgageReports.com

But when rates were that high in '80, the average house cost 45k, now it's 10 times that. 

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37 minutes ago, Mustang87 said:

But when rates were that high in '80, the average house cost 45k, now it's 10 times that. 

The real question is:

Are mortgage payments still w/in the 25-30% of income?
 Remember that in the early 80s, households were still (mostly) operating on one income.

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