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Interest Rates - Mortgage - Buying

Old 02-08-2018, 12:55 PM
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So we just started looking to purchase a home in Fort Myers Florida. We finally got our money back so we sold our house a year ago and have been renting since. We said at the time we would wait out the market but dang! Prices keep going up, interest rates are going up, economy keeps going up!


WAIT -or- BUY ? ? ?


We absolutely hate renting and our landlord is extremely slow to fix anything and just sucks donkey doo!


What say the Hull Truth gods? Houses are going into contract within a week. At least the nice ones are. We don't want to move again unless we are moving into "our" house.
Old 02-08-2018, 12:58 PM
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I made an offer on a home today. Trustco Banks website is showing 4.25% on a 30, 3.875% on a 15. 10% down, no PMI. APR is showing the same, which is a little confusing.
Old 02-08-2018, 01:06 PM
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Home prices are going up, and interest rates are now moving up too, so look carefully at your options.

Now that being said, when housing prices start cooling off, interest rates will likely continue to rise for a bit after that (rates generally, but not always, lag the housing prices). So in some respects you'll either pay a little more for your house now or a little more in interest later on.
Old 02-08-2018, 01:08 PM
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I don't see either going down for a while; I would do it now.
Old 02-08-2018, 01:08 PM
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Originally Posted by SouthpawHD View Post
Home prices are going up, and interest rates are now moving up too, so look carefully at your options.

Now that being said, when housing prices start cooling off, interest rates will likely continue to rise for a bit after that (rates generally, but not always, lag the housing prices). So in some respects you'll either pay a little more for your house now or a little more in interest later on.

That's what I was thinking. I would imagine finding a house in the next 3 or 4 months. Did I say how much I hate renting....!
Old 02-08-2018, 01:11 PM
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Originally Posted by Smitty777 View Post
So we just started looking to purchase a home in Fort Myers Florida. We finally got our money back so we sold our house a year ago and have been renting since. We said at the time we would wait out the market but dang! Prices keep going up, interest rates are going up, economy keeps going up!


WAIT -or- BUY ? ? ?


We absolutely hate renting and our landlord is extremely slow to fix anything and just sucks donkey doo!


What say the Hull Truth gods? Houses are going into contract within a week. At least the nice ones are. We don't want to move again unless we are moving into "our" house.
i dont know about FL but spring time is an active time in the real estate market up North. If you wait until summer/fall, you may find some better deals and lower interest rates. either way real estate is at a high and a correction is expected in the next year or two. personally, i am in no rush because of this even though i am ready to buy. i will only move now if there is a deal to be had. also, impacting us up North is the loss of being able to deduct all of our property taxes.
Old 02-08-2018, 01:13 PM
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Timing the market is a fool's errand! If you get a good price for yours, you are likely to have to pay top dollar when you buy, if you want to buy when prices are low, you likely get less for what you are selling! You should decide based on need and budget. If you need to be somewhere else or need a different size home then buy, if not rent, but as you know renting can really suck and you are definitely not building equity. Time moves on so maybe you should too!?!
Old 02-08-2018, 01:13 PM
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Housing prices are very location specific, so ask questions/do market specific research. Interest rates are going up, just a matter of how much and when. Good luck.
Old 02-08-2018, 01:22 PM
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I see rates going up and within a year or two housing prices on the way down. When the absurdly low inventory corrects itself, as will the property values.

If I were single and living alone, I'd sell my house now, rent til the correction happens, then steal somewhere.
Old 02-08-2018, 02:48 PM
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Originally Posted by TorFed View Post
I see rates going up and within a year or two housing prices on the way down. When the absurdly low inventory corrects itself, as will the property values.

If I were single and living alone, I'd sell my house now, rent til the correction happens, then steal somewhere.

Hard to figure this out

Last edited by Smitty777; 02-08-2018 at 06:56 PM.
Old 02-08-2018, 07:59 PM
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Closed on a refi yesterday....we were 12 years into a 30 on a 5/1 ARM. I hadn't bothered with even thinking about refinancing until the annual adjustment went up the max it could and suddenly it was pushing 4.25. Went into a 15 year fixed at 4.125 and took some cash out. Admiral wants new bathrooms.....

Fundamentals to me appear that rates are on their way up....glad to be out of the ARM and not have to worry about it anymore.
Old 02-09-2018, 03:59 AM
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Just like anything, it is tough to predict the future. That said, rates and values are related. There is no question that interest rates are rising. How far? Nobody knows. As they rise, the cost to own goes up for any given property that is financed. If the monthly payment stays the same, the price has to come down. At some point, higher rates will slow economic growth, and they will top out or drop. Then values will increase as the cost to own drops.

It's basic economics. The problem is guessing when and to what degree rates will change.
Old 02-09-2018, 04:16 AM
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Economics don't always work on housing because there is emotion involved which adds irrational thinking. No one knows how the housing or the stock market is going to go in the future. Housing should no longer be looked at as an investment, the crash ten years ago taught us that.

Play with the numbers, and see what a 0.5% increase or a 1% increase does to your ability to qualify or afford. That may impact when you pull the trigger. And take the long view, what it might be worth in a decade or two.
Old 02-09-2018, 04:21 AM
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Originally Posted by Parthery View Post
Closed on a refi yesterday....we were 12 years into a 30 on a 5/1 ARM. I hadn't bothered with even thinking about refinancing until the annual adjustment went up the max it could and suddenly it was pushing 4.25. Went into a 15 year fixed at 4.125 and took some cash out. Admiral wants new bathrooms.....

Fundamentals to me appear that rates are on their way up....glad to be out of the ARM and not have to worry about it anymore.
4.125 on a 15 year seems high... I think you can score 3.75-3.825 today and if you started the process weeks ago probably 3.5. Who did you use?
Old 02-09-2018, 05:23 AM
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Depends how long you are going to be in your current location. If you are there for the long haul then absolutely you should buy, not sure why you would have sold last year to begin with if that is the case.

If you think you may relocate within 5 years it's probably better to keep renting. If there is a near turn housing downturn you don't want to get caught in that again.

30 year fixed rates are still in the 4.0-4.25 range which is still very good from a historical perspective; if you might be somewhere only up to 10 years, then a 10-1 ARM is a pretty good product with rates around 3.75 right now. You could write the note for 20 or 25 years to pay it down more quickly.
Old 02-09-2018, 05:26 AM
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Originally Posted by mystery View Post
4.125 on a 15 year seems high... I think you can score 3.75-3.825 today and if you started the process weeks ago probably 3.5. Who did you use?
Not only does the new rate seem high it looks like it would take a long time to recover the cost of the refi when the savings are .125%
Old 02-09-2018, 05:30 AM
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Originally Posted by mystery View Post
4.125 on a 15 year seems high... I think you can score 3.75-3.825 today and if you started the process weeks ago probably 3.5. Who did you use?
Admiral's credit score was a bit lower than mine so hers is the one that gets used.

The whole point of the refi was to get out of the ARM. I also shaved 3 years off the loan as there were 18 years left on the original mortgage and the new one is 15. No closing costs for me.

Used a local mortgage broker here in town. Tried to refi with the existing bank through their streamlined mortgage refi program but never could get anyone to call me back.

18 days start to finish including the appraisal and an issue on the deed which had to be cleaned up.
Old 02-09-2018, 05:52 AM
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Originally Posted by gf View Post
Depends how long you are going to be in your current location. If you are there for the long haul then absolutely you should buy, not sure why you would have sold last year to begin with if that is the case.

If you think you may relocate within 5 years it's probably better to keep renting. If there is a near turn housing downturn you don't want to get caught in that again.

30 year fixed rates are still in the 4.0-4.25 range which is still very good from a historical perspective; if you might be somewhere only up to 10 years, then a 10-1 ARM is a pretty good product with rates around 3.75 right now. You could write the note for 20 or 25 years to pay it down more quickly.

We sold because we never had a connection with the house or neighborhood. We were underwater for 10 years and as soon as we got our money back, we were OUT! (Hated the house) We said lets rent for a bit but hate this too so we are shopping around.


Looking for our forever home and looking at 1 acre minimum homes in Fort Myers. This place is exploding so we figured we might as well try to get country living within the city if that makes sense.
Old 02-09-2018, 05:56 AM
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I can't help ya, but I need to hook you up with my work buddy who moved there a few years back...hes just now getting into the saltwater thing...he's been around boats his whole life, ran a service dept up North but could use an offshore buddy down there to show him some of the ol salt tips and tricks....
Oh snap....and his wife is a relator....
Old 02-09-2018, 06:04 AM
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Originally Posted by Weekend-Hooker View Post
I can't help ya, but I need to hook you up with my work buddy who moved there a few years back...hes just now getting into the saltwater thing...he's been around boats his whole life, ran a service dept up North but could use an offshore buddy down there to show him some of the ol salt tips and tricks....
Oh snap....and his wife is a relator....
Are you saying I'm old........................??

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