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Thread: Who knew?

  1. #1
    Join Date
    10-22-01
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    All Over
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    38,196

    Who knew?

    Not me

    If you own a home in the United States, though, chances are your monthly payment hasn’t gone up at all. That’s because a vast majority of homes in this country are bought using 30-year, fixed-rate mortgages. If you locked in a rate of 3 percent last year, your monthly payment will stay the same for the next three decades, no matter what happens with interest rates, home prices or overall inflation.

    In Britain, mortgage rates have also risen rapidly. But the impact of higher rates looks very different. That’s because most mortgages there have fixed rates for only two to five years. (Others have variable rate mortgages that automatically change whenever the Bank of England raises or lowers interest rates.) As my colleague Eshe Nelson reported recently, millions of Britons expect their interest rates to jump up over the next year. Inevitably, some of them won’t be able to afford the resulting higher payments, and will be forced to leave their homes.
    "A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty” ---Sir Winston Churchill
    "Political extremism involves two prime ingredients: an excessively simple diagnosis of the world's ills, and a conviction that there are identifiable villains back of it all." ---John W. Gardner
    “You can’t go back and change the beginning, but you can start where you are and change the ending.” ---C. S. Lewis

  2. #2
    Join Date
    11-22-03
    Location
    In the Village...
    Posts
    43,953
    In the past, I always used fixed rate financing, but after retirement I switched my remaining mortgage amount to HELOC, and rapidly paid off the remainder...Now I have a pool of readily available cash standing by if it's needed, at a variable repayment rate...It cost nothing through my bank for appraisal, nor any other fees for it to stand by dormant......Ben
    The future is forged on the anvil of history...The interpreter of history wields the hammer... - Unknown author...

  3. #3
    Join Date
    10-22-01
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    All Over
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    38,196
    Paying off mortgages is a good feeling, at least until the taxes and insurance bills roll in that were escrowed in the mortgages.

    That brings up another issue---I am trying to find the best institution to place money in CDs----and it isn't easy. One of the highest rates happens to be the State Bank of Texas, which turns out to be a chit show based on reviews

    I am finding the highest rates come at a cost---more than I am willing to pay. I'm willing to back off a 1/2% or so to have less of an "adventure"

    So far the big winner has been Capital One. It is seamless, connected to Wells Fargo and for all practical purposes is just another Wells Fargo account that allows me to transfer money without charges between the two. Their savings rate is 3% and the CD rate for 12 months is 4%.

    My financial advisor has one at 4.85% but it is for 24 months and I am a little cautious of that---hell---I worry when I renew a publication subscription for one year
    "A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty” ---Sir Winston Churchill
    "Political extremism involves two prime ingredients: an excessively simple diagnosis of the world's ills, and a conviction that there are identifiable villains back of it all." ---John W. Gardner
    “You can’t go back and change the beginning, but you can start where you are and change the ending.” ---C. S. Lewis

  4. #4
    Join Date
    10-30-01
    Location
    Salt Lake City
    Posts
    30,645
    I like it when people I know worry about where their money is and what rate it is earning. For, such people tend to do well when it comes to retirement. That's where the rubber meets the road.

    It's been interesting watching the younger generations in their monetary decisions. My youngest family members bought homes right out the gate. And, thus far are doing well regarding investments, et al.

    One thing that causes me concern is young Americans, in general, are running up credit card debt, etc. That's fine as long as our economy is humming along. But, that debt is a handicap in a recession, particularly if unemployment rates rise too.

    Hunter
    I don't care if it hurts. I want to have control. I want a perfect body. I want a perfect soul. - Creep by Radiohead

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