What kind of mortgage do you have?

Posted by: Trog

What kind of mortgage do you have? - 06/16/05 11:57 AM

Variable-rate and even interest-only mortgage loans are incredibly popular right now. But, considering that mortgage interest rates WILL increase in the next couple years (every financial indication says they will), wouldn't it be a better idea to get a good 'ol fashioned fixed-rate mortgage?<br><br>...or does this all depend on how long you plan to live in the house? Say, you think you will be moving in 3-5 years, then is it always in the borrower's interest to take out a variable interest rate loan?<br><br>(In case it isn't obvious my first house purchase is looming. If not this summer, then next). <br><br>
Posted by: Pete

Re: What kind of mortgage do you have? - 06/16/05 12:12 PM

I got fixed- I don't know if you should get a mortgage based on any future plans to move, because you never know what your situation may be in 3 or 4 years.<br><br>I definitely don't think this is the last house I'll ever buy, but I'll cross that mortgage bridge when I come to it...<br><br><br>Back in Black...
Posted by: garyW

Re: What kind of mortgage do you have? - 06/16/05 12:32 PM

Fixed, 15-year. Spent a small fortune remodeling, we're not going anywhere.<br><br>
Posted by: Trog

Re: What kind of mortgage do you have? - 06/16/05 12:44 PM

So you both have fixed.... but you don't seem particularly happy about it?<br><br>
Posted by: Pete

Re: What kind of mortgage do you have? - 06/16/05 12:51 PM

I'm happy - I got locked in at the high 5's somewhere (5.8 I want to say?)- there were some benefits I remember to going with a variable rate, but for the life of me I can't remember what they were...<br><br>I'd have to go back and ask the mortgage broker. That might be a good first step for you- have a broker explain the pros and cons of each, and make your decision from there...<br><br><br>Back in Black...
Posted by: MacGizmo

Re: What kind of mortgage do you have? - 06/16/05 12:52 PM

30-year fixed. We're around a 6.2% interest rate on the loan, so re-financing isn't really worth it, and we plan on staying in the house for a while.<br><br><br><br>CreativeGuy: For your "fix" of design software tips, tricks & commentary.
Posted by: garyW

Re: What kind of mortgage do you have? - 06/16/05 12:58 PM

I originally purchased with an adjustable 30 yr because it was the least expensive way in the door. Re-fi after a year with lower adj. rate, with money out to make improvements. Each year the apprasial is going up and up, Re-fi again last year with a fixed 15 yr, rates are still very good, the monthly payment (which includes property taxes) is much higher than previous but we're paying on the principle. We crunched the numbers and it saves a bundle.<br><br><br><br><br><br>
Posted by: skuldugary

Re: What kind of mortgage do you have? - 06/16/05 12:59 PM

30 year fixed. Sure, rates may (may) drop, and if they do I can refi, but and here's the big thing, when (not if) rates go up, you'll be able to tell who has a fixed rate from the big smiles we'll be wearing. <br><br>Take it from me, stay far away from the interest only loans. They're big business with lenders right now. Want to know what the next big business item will be? Foreclosures.<br><br>Good luck with your new home. It's such a great thing to have your own house. <br><br>
Posted by: RubenC

Re: What kind of mortgage do you have? - 06/16/05 01:28 PM

I refinanced a few years back on a fixed 15 year mortgage. I'm planning a remodel right now simple because the house prices in California are soring through the roof! I debated on selling but, comparable houses would be worth three times as much and the taxes would be huge.<br><br>
Posted by: Trog

Re: What kind of mortgage do you have? - 06/16/05 01:39 PM

Thanks to all!<br><br>So far EVERYONE has fixed rate. Interesting. I've been reading various magazine newspaper articles (here is one from this morning) that say the opposite.<br><br>I'll be talking to someone tomorrow and over the weekend about this stuff (I'm such a noob). My wife still hasn't found a position in LV yet, so we're not exactly ready to start signing anything anyway.<br><br>
Posted by: Pete

Re: What kind of mortgage do you have? - 06/16/05 01:45 PM

LIke the article seems to imply, those with the adjustable mortgages will be more than a little shocked when their payments shoot through the roof with the rates...<br><br>The only way my payment goes up is if the property taxes do. <br><br>Back in Black...
Posted by: garyW

Re: What kind of mortgage do you have? - 06/16/05 01:51 PM

Best of luck, LV must be a tough market to buy into. I strongly suggest to do the math with your property taxes include in the mortgage, it makes it so much easier to spread it out over the whole year. <br><br>And once you've moved in, let's start a "Remodel From Hell" thread. (or, "Why is my contractor drunk and at the casino again?" thread)<br><br>
Posted by: mojo_jojo

Re: What kind of mortgage do you have? - 06/16/05 01:56 PM

15 year fixed at 4.625%. Although we have been in the same house since 1987, this is our fourth mortgage on the place. And we just took out a sweet HELOC to build a garage and remodel a bathroom. That has a rate that is prime -1%, with a ten year term.<br><br>Unless you are aabsolutely certain that you will be out of a house with an interest only or variable rate loan in a few years, I would avoid them. Fixed rates are low enough to make them a better bet. <br><br>
Posted by: ezyrider

Re: What kind of mortgage do you have? - 06/16/05 02:34 PM

We just paid ours off 2 years ago! <br><br>I'm saving for a massive remodeling project. I'm enclosing the patio so I can have a real office again, adding a deck to replace the patio and adding an upstairs room above the garage. It's a huge undertaking but we plan on being here until we retire in 25 years or so.<br><br>No credit card debt either! We have two car payments and that's it. They'll be paid off in 2 years. Man I'm looking forward to that!<br><br>
Posted by: Krasni

Re: What kind of mortgage do you have? - 06/16/05 02:50 PM

Variable - 15 years. But it's in Madrid.<br><br><br>
Posted by: Trog

Re: What kind of mortgage do you have? - 06/16/05 04:36 PM

Thanks again, folks. If I pick up any tidbits of wisdom this weekend I'll bring it back.<br><br>
Posted by: steveg

Re: What kind of mortgage do you have? - 06/16/05 05:25 PM

Avoid VR's and especially intrerest-only. Red this frm today's NYTimes.<br><br>
Posted by: hayesk

Re: What kind of mortgage do you have? - 06/16/05 05:59 PM

I have a variable rate mortgage at 3.5% (bank prime - .75%) and the ability to lock into a 5 year fixed at their posted rate minus 1% at any time.<br><br>What is an interest-only mortgage loan? Is that where you only *have* to pay the interest and whatever part of the principle you want? If so, I'd stay far away from that unless you have a plan and will power to pay off more of the principle than you normally would. That sounds like the bank is trying to prolong the mortgage for when the rates go up, where they'll really stick it to you.<br><br>
Posted by: Pete

Re: What kind of mortgage do you have? - 06/16/05 07:23 PM

Steve, did you happen to notice the post above where Trog linked to that very same article? <br><br>Back in Black...
Posted by: carp

Re: What kind of mortgage do you have? - 06/16/05 08:09 PM

30 year fixed at 11%, you can always re-fi if it drops 2%<br><br>Be-careful about VRs - If you do go that route make sure you can handle 2% possible hike. The rates are based on what Greenspans thinks and that can be scary. Lots of first time buyers go that route because the loan is easy to get but many default when rates grow real fast like in the 80s<br><br>Good luck<br><br>
Posted by: steveg

Re: What kind of mortgage do you have? - 06/16/05 08:46 PM

Oops! Been a long day. <br><br>
Posted by: Terry11

Re: What kind of mortgage do you have? - 06/16/05 10:51 PM

Foreclosed. <br><br>
Posted by: Pete

Re: What kind of mortgage do you have? - 06/17/05 07:14 AM

Carp- speaking of which, why haven't *you* re-financed? 11%?!!!<br><br>Back in Black...
Posted by: Beniitec

Re: What kind of mortgage do you have? - 06/17/05 12:09 PM

15 yr 4.7% fixed<br><br>
Posted by: carp

Re: What kind of mortgage do you have? - 06/17/05 08:41 PM

11% was the going rate back in 1980 - later when the rates dropped down to 7% I went to re-fi - they said that since I am self employed "CarpentryPlus" construction companies are on the list of High Risk, so the best I could get is 10.5 which I told them to take a hike<br><br>
Posted by: ichi

Re: i deliver these things in my spare time... - 06/17/05 09:06 PM

if you got clean credit you may come in around 5 or 6 pts. with where the rates are now.<br><br>everybody [99%] is fixed --GMAC or GMAC DBA DITECH.<br>call 'em up and they'll send a signing agent (who [most likely] has no interest in whether you sign or not --just a local notary/attorney-- but you can keep your copy, and if you do sign you'll likely have a 3 day Right to Cancel... no worries they're good loans... you can call your processor while you're signing or reschedule if there are problems) to your house or wherever you want, when you want, to do the signing.<br><br>
Posted by: HappyHippie

Re: i deliver these things in my spare time... - 06/18/05 06:21 AM

Welp now mine is free, dont pay no interest at tall. Got dis old school bus<br>fur 1500 bucks 20 or so years ago, gutted it out, and the fixings to do her up <br>were free for the taking, eye parks it where i please, squat kinda like,<br>till days tell me to move it....bummer man, but da up side to having<br>nothing, is you aint got no worries either....free and easy lifestyle<br>hellsbells youall uens need a lessen in how to get free grub too.<br><br>[color:purple]keep on truckin' brother</font color=purple><br><br>
Posted by: TreeBeard

Re: i deliver these things in my spare time... - 06/18/05 07:28 AM

Yo keep on truckin' dude.<br><br><br>but where will we be when the future comes?
Posted by: Stumpy1

Re: What kind of mortgage do you have? - 06/19/05 06:00 PM

30-year, fixed-rate. Payments aren't overly high, yet I'm paying something on principal each month. Unless you live in an area of extremely high home prices, I'd shy away from interest-only jobs. If there is a downward adjustment of home prices, you won't be left holding the bag on equity that is non-existent.<br><br>My 2ยข.<br><br>[b][color:green]Stumpy</font color=green>[b]<P ID="edit"><FONT SIZE=-1><EM>Edited by Stumpy1 on 06/19/05 09:10 PM (server time).</EM></FONT></P>