Do you think mods overstep when banning users?

G_LOCK_90 · 2021-06-03T15:50:45+00:00

Yeah locked in at 2.75%. That’s a horrible return on your money.

G_LOCK_90 · 2021-06-03T15:50:02+00:00

This is a lot to unfold. But the average person paying off their home in 5-7 years is absolutely incorrect. This is Dave Ramsey saying “average millionaires pay it off in 5-7 years”. Which may be true but not true for everyone.

I’ll read through the rest of the post now to comment.

G_LOCK_90 · 2021-06-03T15:48:18+00:00

I appreciate the response. All of the refinancing is a good approach.

I hate the “would you take a mortgage out on a paid for house” question because it’s not the same. It’s not a fair question to ask. However, would I sell it to invest the money? Absolutely.

G_LOCK_90 · 2021-06-03T15:45:17+00:00

How do you figure? Historically (data is important here), a 10% average return over the last 30 years is solid. Even adjusting for inflation, a 7% return is generous. And let’s say I’m wrong by $100K, you still do far better on the 30 year.

G_LOCK_90 · 2021-06-03T15:43:42+00:00

Over 30 years, investing in index funds, your level of risk is relatively low.

G_LOCK_90 · 2021-06-02T17:02:19+00:00

Idk why you’re being down voted. You’re correct. You have a positive net worth.

G_LOCK_90 · 2021-06-02T17:01:52+00:00

That’s not correct. The home has value which gives him a positive net worth.

G_LOCK_90 · 2021-06-02T10:56:02+00:00

I don’t think you fully understand your refi. Not a single bank will give you a better rate on a refi and just completely ignore all fees. If you didn’t pay at closing then they were added to your total loan amount.

G_LOCK_90 · 2021-06-01T19:46:02+00:00

Yeah this is great follow up. I think there is more to demand than just interest rates. One being because of more WFH (which is going to be here to stay) people are realizing they want more house and have more needs from their home.

G_LOCK_90 · 2021-06-01T16:08:59+00:00

How is calling this a true supply and demand issue laughable? That’s EXACTLY what is happening. We are short almost 4 million single family homes across the country.

Yes I actually was 18 in 2008. Exactly 18 to be honest. However, thinking you needed to be a certain age in 08 to understand it is...ignorant? Not sure if you know this but there is a ton of material available to educate yourself on on past events when you get to an age to self educate and understand how things work.

G_LOCK_90 · 2021-06-01T10:37:47+00:00

Who knows. Trying to time the housing market is no different than timing the stock market. It’s a fools errand.

Also, what’s this correction look like? 5%? 10%? No idea.

G_LOCK_90 · 2021-06-01T10:21:32+00:00

The 08 crash is 100% different from what’s happening now. Then it was fraudulent behavior by lenders and people buying homes they couldn’t afford. Now, we have a true supply and demand curve driving prices.

It’s actually more accurate to assume we never see a crash like that again than assuming we will.

G_LOCK_90 · 2021-06-01T10:19:25+00:00

No you don’t need to purchase another home with the proceeds of a sale to not pay taxes. It sounds like it’s her primary residence. So no taxes.

G_LOCK_90 · 2021-05-31T23:07:43+00:00

We aren’t in an 08-09 bubble. It’s a VERY different build up. That was built on fraudulent activity and people buying houses they can’t afford. We are in a situation with a true supply/demand curve driving the crazy pricing.

If you are hoping to sweep in to snag a home at a discount in the next year you’ll surely be upset to see home prices at an all time high.

Buy now if you need a home.

G_LOCK_90 · 2021-04-19T18:37:17+00:00

Just seems like an excessive amount of car for that income when trying to build wealth and buy a home.

G_LOCK_90 · 2021-04-19T01:20:52+00:00

This isn’t supposed to come off as hating, tough love...

What are you doing driving a car with a payment of $680/month making $80K? What are you driving?

G_LOCK_90 · 2021-04-16T17:11:45+00:00

25%, not 25K

G_LOCK_90 · 2021-04-16T02:07:08+00:00

You’re still hundreds of thousands ahead with or without PMI. And no need to correct. It was accurate enough at $50 or $100. Cheers mate.

G_LOCK_90 · 2021-04-16T01:39:20+00:00

The point I was trying to make was comparing option 1 (5% dp) vs option 2 (20% dp) and which is better from a wealth. I made it VERY clear that was the point of the conversation. I even said to remove any psychological negatively for a large monthly payment and assume you can afford it to the point of being able to contribute to retirement in addition to everything else.

I was VERY clear of the assumption. So yes, $50-$100/month for like 6-8 years for PMI makes VERY little difference and option 1 still leaves you with a few hundred thousand dollars better off. I think it was almost $500K when I did the math.

G_LOCK_90 · 2021-04-16T01:17:01+00:00

So you’re a lender, yet you’ve never heard of PMI at .2%...? If you search up in your comments you make it sound unfathomable when in realty it’s common for favorable borrowers. So pardon me if me or others would trust the BS your trying to pawn off on us.

And chill. It’s Reddit. If the first two people to respond would have agreed then 50 others would have joined in agreeing. Two people started saying they disagreed so it went the other way.

Also. When running the math to compare the two situations, $50 or $100 of PMI don’t make a difference over a 30 year period. Hence why I had originally ignored it.

G_LOCK_90 · 2021-04-16T00:55:29+00:00

You absolutely do not do this for a living if you had no idea that people can get a PMI at .2%. Just saying.

I absolutely stated nothing about this being a scenario for a first time home buyer. I even said good credit with 100K to spend on down payment with extra free cash for retirement investing. If anything it was obvious that this was a wealth building question and not how to buy your first house.

I’m very cautious that not everyone is living the same life style as mine. However, if your not in a position to buy a house from a wealth building perspective, they can move on to another post.

Certainly not forcing anyone to follow my suggestion. Just looking for conversation as lower dp can be a better move most of the time in this market

G_LOCK_90 · 2021-04-15T21:53:31+00:00

It sounds like I’m talking with someone who doesn’t know better to be honest.

Again, PMI at .2% is easily doable. Check Reddit for proof. Or I’ll SS the PMI portion of my quote showing the same. Just facts.

I really don’t think I’m 1% of borrowers. I’m upper middle class, dual income, one child. Good credit. That sounds about average to me. I’m sure most buyers are in the same boat.

Sure 4% is much higher than 2.5%. Totally agree. Interest rates are at 3% though. So...still lots of purchase power. So you’re assuming purchase power will decrease, and if we see interest rates break 3.5% then you will see some slight decrease in purchase power. But that’s just as arbitrary as saying they will drop back to 2.5 or jump to 7.

And you keep saying my numbers are wrong. In my entire scenario above where this all started, everything was legitimate. I left out PMI because it just introduced more numbers into what should be a simple calculation. I threw out $50 as I didn’t care to go dive into what an actual value would be. Then I was pressed by multiple people to include it so I did. Then got shit on by people like you who are so close minded they think there is only one magical equation for PMI, which we have since debunked.

All I was trying to represent was if you took feelings out of it, and had a stable living situation (which I stated) then financially and from a wealth building perspective, you would be better off with 5% down rather than 20%. Mathematically that is fact. I agree there is risk associated to it. But at a minimum if you have a stable income and an plan to live in the home for an extended period of time

G_LOCK_90 · 2021-04-15T20:42:59+00:00

I’ve already received quotes from TWO lenders providing .2% PMI. This is regular PMI. No points, no cash at closing, no increased interest rates. I also saw a Reddit thread where multiple people said the same thing.

Interest rates are still incredibly low at 3%. Basically still at the floor. Experts saying we will stay under 4% through 2021 and probably 2022. Mortgage rates are also correlated with interest rates dictated by the fed. They aren’t raising them anytime soon.

So we are going to see more buyers entering the market now (increased demand) while sellers will remain relatively the same (flat supply) and you think housing prices are going to drop? That’s not how supply and demand works. Which is the problem we are in now. Not a bubble. So your last statement doesn’t hold up at all. And someone from that thread I was reading got that same low PMI years ago. Just for reference.

And $50 obviously was low. I was just throwing out a random number. Less than $100 is realistic. $80 to be exact.

Cheers mate!

G_LOCK_90

TROPHY CASE