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Jan 14, 2022
11:54
:03
am
Gente_Boa
All-American
So you can keep the house when you move as a rental
having a 30 year mortgage at such low interest is a huge asset, especially in an inflationary environment
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Gente_Boa
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Gente_Boa
Joined
May 6, 2013
Last login
Jun 3, 2024
Total posts
4,482 (20 FO)
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Messages
Author
Time
Why get a 30-year fixed mortgage if you are moving within ~7 years?
NorthBayCoug
1/14/22 11:45am
We refinanced with a variable rate mortgage with 7 years fixed, 2.1% interest
wannnacruise
1/14/22 11:47am
Why pay 4% I/O variable when you can pay 2.875% fixed in case your plans change or convert to rental property?
mulletino
1/14/22 11:49am
can you keep an owner occupied note when you convert it to an income property?
BYUFBDAD
1/14/22 12:13pm
Yes, as long as you live in the home for 12 months as agreed on the occupancy affidavit.
mulletino
1/14/22 12:21pm
If conversion is a possibility, I'd make sure that document is in the package.
BYUFBDAD
1/14/22 1:21pm
99% of all loans are Fannie Mae or Freddie Mac. You can do whatever you want after you’ve occupied the property for 12
mulletino
1/14/22 2:12pm
<< Deleted >>
NorthBayCoug
1/14/22 12:33pm
That's what I used to think, but here is why I have changed my way of thinking
NorthBayCoug
1/14/22 12:39pm
Doesn't that $367/mo go to your equity, though? So you'll get more when you
RGGeemer
1/14/22 12:45pm
It does. But does that $367/month in the bank increase at the same rate
NorthBayCoug
1/14/22 12:48pm
My current view = 15 year mortgage, most expensive home you can afford-- even
Socrates Johnson
1/14/22 11:50am
with rates this low 30 year is objectively better than 15
Gente_Boa
1/14/22 11:53am
How so?
Socrates Johnson
1/14/22 12:32pm
yes, And you tie up less cash now in your monthly payments that you can use to
Gente_Boa
1/14/22 3:00pm
If you can be that disciplined, there is no doubt that would be something.
Socrates Johnson
1/14/22 7:00pm
Risky
RGGeemer
1/14/22 11:55am
lol. This is truly terrible advice. Buy the most expensive house you can possibl
Mayor of Cougartown
1/14/22 11:59am
To be fair, we bought in 2017 with the idea that we would move to a bigger house
RGGeemer
1/14/22 12:09pm
unprecedented times. Can't make a blanket recommendation on something based on
Mayor of Cougartown
1/14/22 12:15pm
The purpose is to force you to save more without your noticing it or having
Socrates Johnson
1/14/22 12:20pm
That is fine but it is a terrible return. 15 year rates have been in the 2s
johnnybyu
1/14/22 4:23pm
If you are disciplined enough to actually do it, I agree.
Socrates Johnson
1/14/22 7:01pm
If you buy on a 15 year mortgage, more than half of your payment is savings
Socrates Johnson
1/14/22 12:16pm
ok I get what you're saying. A way to force save.
Mayor of Cougartown
1/14/22 12:37pm
I agree house poor sucks, but if you limit to what they will loan you on a 15
Socrates Johnson
1/14/22 12:40pm
4% on a home hasn't been a good rate for a long time.
IdahoCoug
1/14/22 11:52am
What if you want to pay an extra 35% toward interest instead of principal and escrows?
mulletino
1/14/22 11:58am
Isn’t the worry things could change. Rates climb and you don’t move when you
SouthernBlueBlood
1/14/22 11:53am
So you can keep the house when you move as a rental
Gente_Boa
1/14/22 11:54am
If you can afford a new house in 7 years
RGGeemer
1/14/22 11:54am
Who knows what they're going to be doing in 7 years?
fattycoug
1/14/22 12:10pm
My thoughts have always been you don't know what's going to happen.
UNLVcougar
1/14/22 12:43pm
Explain to me how you believe an interest only loan is better than a regular 30 year? You do realize any additional
kimdaddy35
1/14/22 12:57pm
Yes, but do you realize the money you put into your house, which in
NorthBayCoug
1/14/22 3:56pm
I like interest only but it all comes down to rate. The return on paying your
johnnybyu
1/14/22 4:21pm
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