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This is a sub-selection from Income Tax question
Bob4
Account deleted
join:2012-07-22
New Jersey

Bob4 to H_T_R_N

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to H_T_R_N

Re: Income Tax question

Always put at least 20% down in cash. If you can't do that, you really can't afford to buy the property.

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD

Premium Member

said by Bob4:

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

When I bought my house, the LTV was exactly 80%. Now its about 105%
Bob4
Account deleted
join:2012-07-22
New Jersey

Bob4

Member

said by AVD:

said by Bob4:

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

When I bought my house, the LTV was exactly 80%. Now its about 105%

Onion isn't what it used to be. (I lived there from 1962 to 1981.)
H_T_R_N (banned)
join:2011-12-06
Valencia, PA

H_T_R_N (banned) to AVD

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to AVD
said by AVD:

said by Bob4:

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

When I bought my house, the LTV was exactly 80%. Now its about 105%

OUCH!! Bought at 75% 10 years ago, 4 more years and it will be 0.0%

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

Draiman to Bob4

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to Bob4
said by Bob4:

Always put at least 20% down in cash. If you can't do that, you really can't afford to buy the property.

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

Not true at all. I make more money in the stock market then my house so I want to put in as little as possible. If you can't manage money then sure dump as much as you can into your house so you don't spend it. For those of us who can manage money well we'll skip that mistake.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD

Premium Member

These days the house loan is the cheapest money you can borrow.

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

2 edits

Draiman

Member

said by AVD:

These days the house loan is the cheapest money you can borrow.

Exactly. You can get 3.5% on the loan and make 6-9% in the market. It doesn't take rocket science to do that math.

You can use the extra interest to pay down the loan faster if you want and end up paying the note off faster that way.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD

Premium Member

My co worker just re-fi'ed for 2.75%

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

Draiman

Member

said by AVD:

My co worker just re-fi'ed for 2.75%

I could have refi'ed at 2.5% but anything under around 3.5% is points. Most places let you buy up to 4 points or 1% down on the rate. A point costs 1% of the loan value at closing and reduces the interest rate by .25%. That's on a conventional 30 year fixed note. I keep ARM's on my rentals and those have been 2.5-2.75% for the last 2-3 years now. The 30 year has never been under 3%.

»ycharts.com/indicators/3 ··· age_rate

AVD
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join:2003-02-06
Onion, NJ

AVD

Premium Member

He says no points and the broker absorbed the closing costs.

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

3 edits

Draiman

Member

said by AVD:

He says no points and the broker absorbed the closing costs.

3.31% is the lowest rate between 1976 and now on the 30 year fixed.

When you do a no closing cost loan they ADD to the rate. Normally between 1/8 or 1/4 of a point. They aren't in business to lose money so there is no 'absorbing' happening. If they got sub 3% with no points and no closing cost it was an ARM. Those rates are around 2.5-6% right now so adding 1/8 or 1/4 point for no closing costs would make it 2.75% no points no closing cost.

»ycharts.com/indicators/5 ··· age_rate