Any real estate guys here?

feddoc

Long Time Member
Messages
5,126
I will bet besssssies left nipple that (re-finance)interest rates will fall again by the end of the week.
 

feddoc

Long Time Member
Messages
5,126
I'm not sure, but I trust my RE guy.

He said that Fannie Mae and Freddie Mac just dropped a 50 basis point penalty pricing that was in place since May 2020.

I asked for a plain language translation.

'Refinance rates will drop again.'
 

eelgrass

Long Time Member
Messages
26,768
If you were really smart and bought a house 5 years ago now is the time to refinance. No point in having all that equity just sitting there. Refinance to the max and take that cash and go on that vacation you always dreamed of. The way real estate prices are going you can do it again in a couple years. Live the American dream.

Now, that's sarcasm.
 

Homer

Long Time Member
Messages
9,704
If you were really smart and bought a house 5 years ago now is the time to refinance. No point in having all that equity just sitting there. Refinance to the max and take that cash and go on that vacation you always dreamed of. The way real estate prices are going you can do it again in a couple years. Live the American dream.

Now, that's sarcasm.
sadly.....it's true
 

Hardway

Very Active Member
Messages
2,848
I bought my current place 8 years ago for 190k…. Refinanced about 140k a month ago and got 2.1% on 15 years…. I was in a 30 year….. I can retire in 11 years…. Want to have this place payed off so I can di(k around all day on MM like JB 🤣
 

LivingTheDream

Active Member
Messages
249
Man, I keep preaching cut the years and forget the payment!
Everyone wants a low payment for 30 years! F that!
Do as much as you can afford for 15 yrs or 20!

Depends on how you look at it. If you did 30 years at 2.5% and took the additional money you saved as compared to a 15 year and put that in the stock market and earned 5 to 7% a year compounding annually you will probably come out a head. You also have to factor in that your mortgage rate is locked and in 30 years due to inflation your house payment will look like a car payment today.

However, what you mention is a safer approach and it depends on your age and risk tolerance.

Note: not financial advice, the opinions listed above are my own and probably should not be followed by anyone.
 

eelgrass

Long Time Member
Messages
26,768
Depends on how you look at it. If you did 30 years at 2.5% and took the additional money you saved as compared to a 15 year and put that in the stock market and earned 5 to 7% a year compounding annually you will probably come out a head. You also have to factor in that your mortgage rate is locked and in 30 years due to inflation your house payment will look like a car payment today.

However, what you mention is a safer approach and it depends on your age and risk tolerance.

Note: not financial advice, the opinions listed above are my own and probably should not be followed by anyone.
The math certainly works out with past history and if one has the discipline to do that it would work out okay.

I know people who borrow against real estate to the max and use that money to purchase more real estate and over time become quite wealthy. Especially if they're willing to put some sweat equity into it. Some people lose everything if the timing is wrong or if they invest in the wrong properties.

Me? I paid my house off in the 1990's and I have a place to camp no matter what happens.
 

LIK2HNT

Very Active Member
Messages
1,099
If you were really smart and bought a house 5 years ago now is the time to refinance. No point in having all that equity just sitting there. Refinance to the max and take that cash and go on that vacation you always dreamed of. The way real estate prices are going you can do it again in a couple years. Live the American dream.

Now, that's sarcasm.

Eel
You would not believe how many people I have seen do that over the years. Vacations, toys, etc. Then later they foreclose and the toys get repod. In a few years they are back at it. In the meantime they create price increases for everyone else.
 

elkassassin

Long Time Member
Messages
26,786
Yup!

And Once again,Who Pays for their ways!



Eel
You would not believe how many people I have seen do that over the years. Vacations, toys, etc. Then later they foreclose and the toys get repod. In a few years they are back at it. In the meantime they create price increases for everyone else.
 

LivingTheDream

Active Member
Messages
249
The math certainly works out with past history and if one has the discipline to do that it would work out okay.

I know people who borrow against real estate to the max and use that money to purchase more real estate and over time become quite wealthy. Especially if they're willing to put some sweat equity into it. Some people lose everything if the timing is wrong or if they invest in the wrong properties.

Me? I paid my house off in the 1990's and I have a place to camp no matter what happens.

Yeah I know people who leveraged an asset to get more leveraged into more assets but I feel that is extremely risky. I wouldnt feel comfortable doing that right now. I am seeing people doing that now and trying to flip houses and it feels like 2007 again.

Get the feeling those with cash will be king in a few years as they buy up distressed assets.
 

Bluehair

Long Time Member
Messages
3,382
The only one you should ever pay interest to is yourself.

Contrary to what Trump did, debt is a dangerous way to build wealth.
 

Wiszard

Long Time Member
Messages
8,930
I have been in RE for 17 years and I just passed my Brokers exam a few months ago. That being said....the brokers license did not come with a crystal ball so most answers to that question is an educated guess.
I once had a guy ask me if he should refi his commercial building, take the equity out and pay down his residential mortgage. When you guys see the irony in that, pipe in.
Equity is only good when you leave it in place and build on it. You'd be amazed at who will lend you money when you have $300K equity in your home.
 

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