Ahh the old Cuba has great health care gambit, lol. Michael Moore is that you?
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Poor Biden, so much bad luck with that guy. He comes to into office, cancels Keystone on Day 1 then gas prices double. So much bad luck.
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Exactly, Biden and DNC trying to fix the big mess of Trump. You remember how bad it was. I mean instigating for a nuclear war is better than peaceful existence like we have now.
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I remember those dark days. 2% inflation, $2.50 gas, Dow at 35K, booming housing market, no war in Europe.
It was hell man.
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Lol I know youâre being facetious here but the funny part is that Biden himself was a predecessor.
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I donât see the excel sheet. Can you please send me the link
At first glance Iâd say that people who took out adjustable rate mortgages and HELOCs are about to be in a world of hurt and may need to get rid of some of their more discretionary purchases.
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I understand the HELOC people but ARMs? They are locked for 5, 7, or 10 years. So even if you got your house 3 years ago you still have 2 years to ruminate about upcoming payment hike.
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If you got an arm youâre a moron. Unless of course itâs on a portfolio loan. Lots of investors have no choice but to get arms on their portfolio loans. That should be interesting if rates stay high and rents fall, inventory rises.
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The Bond market has already priced in a bunch of future rate hikes. Iâd be willing to bet money that if the Fed hikes 1% tomorrow and announces that they are done, mortgage rates will drop at least 1/2% within a couple of weeks. Itâs disturbing how many âexperts â on CNBC donât understand this.
Ehhh I think they have their applications. No?
For example, a 5/1 or 7/1 ARM at 5.0+% sounds much more enticing than a conventional 30 at 7.2+%. I would take the chance and roll the dice at refinancing into a conventional when rates drop in the next few years.
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Honestly why wouldnât you take an ARM right now. Unless you think the next decade rates will be high.
Fixed at 5, 7 or 10 to hedge instead of blindly taking a 15 or 30 year fixed knowing you have to refinance either way.
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Current hopium from Wall Street is 75 basis points in Nov and 50 points in DecâŚthen an announced pivot from rate hikes. Wall Street 100% does not want to hear more rate hikes are coming after Dec.
There are times for ARMs⌠even those OArms of the 90s/00s.
Itâs when people are not qualified where we get into issues but a large amount of that has been taken care of with stricter underwriting (not to say that isnât still an issue).
Itâs just like now⌠there are times to lease and times to buy. People say Iâm a moron for leasing⌠but itâs a decision I have to make based on my needs⌠not theirs.
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If you can rent for a fair bit cheaper than a mortgage would be on a comparable property, youâre not equivocating.
We had a fairly stable housing market when average rates were still in the high single/low double digits and honestly thatâs what it may take to get back to real valuations.
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I meant when rates were low! Of course now an arm can make sense if you think rates will fall in 3-5 years
He was saying people who took out arms previously will be in a world of hurt as they reset in the next year or soâŚ
My apartment would cost $7k a month to mortgage right now. I pay $4k in rent. No brainer unless you think valuation will keep rising.
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I think you should probably use the deflation rate in the last 3 months.
If you back out the amount that goes towards principal and the tax deductions for interest and tax you probably get very close to your rent payment.
Risk reward. Getting locked into a condo that could lose $100k+ in value. Im not paying maintenance or utilities here either. Only 10k of taxes would be deductible. Condo fees of $1600/mo arenât. Iâm still saving over $1000/mo even with the tax deductions based on a 35% bracket. That bracket also isnât guaranteed, I could be one of the people that lose their job.
Also factor in closing costs and 20% down, approx $200k making 4%. I just donât see the upside to owning right now. The flexibility of leasing is nice as well. In retrospect of course I would have bought a 500k place at 3% in 2019, but no one saw this coming.
Paying no state/local income taxes in Florida almost pays my entire year of rent anywayâŚ
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Ok first of all replying to you is a mistake after seeing you praise Cuba. However, I canât help myself. Saying âthis is a lieâ is not a valid argument. Is that all you got? By every quantifiable metric the United States has the best healthcare in the world. The ONLY thing we donât win on is cost. When the sultan of Brunei, probably the real richest man in the world needed healthcare do you know where he went? To Johnâs Hopkins in Baltimore. That is a fact. What new drug have we come out with lately? First of all I didnât say drugs I said innovation, which takes many forms. Second name one other country that has had a quarter of the medical innovations of the United States, perhaps Israel and those innovations are partly paid for by the United States.
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