Real Estate in your city - Page 49

Gantz · #**961** Posted **Jul 26, 2022, 7:17 PM**

Quote:

Originally Posted by Crawford

Our new home has 5.25% rate on 30 year, as I had to lock in a few weeks ago, on a day of major turmoil.

I thought, oh well, I could refi in a year or two. Now not so sure.

Ouch. You may have to wait a while now before rates come down.

Crawford · #**962** Posted **Jul 26, 2022, 7:28 PM**

Quote:

Originally Posted by Gantz

Ouch. You may have to wait a while now before rates come down.

Yeah, it sucks. But purchase was 70% cash, so it isn't a huge amount.

I'll eventually refi.

lio45 · #**963** Posted **Jul 26, 2022, 7:41 PM**

On my house, I just looked, I’m at 1.60% but that’s only till May of 2023. I think I locked it for two years back in May of 2021. My next rate might be 4-5%. Still pocket change in the grand scheme of things, obviously.

I don’t know anyone who ever locked a rate for more than 5 years. Not even sure it’s done here.

Steely Dan · #**964** Posted **Jul 26, 2022, 7:45 PM**

Quote:

Originally Posted by lio45

I don’t know anyone who ever locked a rate for more than 5 years. Not even sure it’s done here.

a "15 or 30 year fixed" is a very common loan for US home buyers.

we're now 5 years into a 30 year loan locked in at 3.6% for our home.

Tom In Chicago · #**965** Posted **Jul 27, 2022, 5:20 PM**

Quote:

Originally Posted by Steely Dan

a "15 or 30 year fixed" is a very common loan for US home buyers.

we're now 5 years into a 30 year loan locked in at 3.6% for our home.

Well done. . . I'm 2.5 years into a 30 year loan locked in at 4.25% for my condo. . . I don't feel too bad about that. . .

. . .

Vlajos · #**966** Posted **Jul 27, 2022, 6:05 PM**

Quote:

Originally Posted by Steely Dan

a "15 or 30 year fixed" is a very common loan for US home buyers.

we're now 5 years into a 30 year loan locked in at 3.6% for our home.

Quote:

Originally Posted by Tom In Chicago

Well done. . . I'm 2.5 years into a 30 year loan locked in at 4.25% for my condo. . . I don't feel too bad about that. . .

. . .

We actually refinanced last year at 2.75% for 30 years. Basically free money. We have 0 plans to move for at least 15 years. And I can make large principal payments as I wish or not.

Investing In Chicago · #**967** Posted **Jul 27, 2022, 7:55 PM**

Quote:

Originally Posted by Vlajos

We actually refinanced last year at 2.75% for 30 years. Basically free money. We have 0 plans to move for at least 15 years. And I can make large principal payments as I wish or not.

Same. We're at 2.95% on a 30 year jumbo, which is insane. With inflation, it's free money.

Vlajos · #**968** Posted **Jul 28, 2022, 1:07 PM**

Quote:

Originally Posted by Investing In Chicago

Same. We're at 2.95% on a 30 year jumbo, which is insane. With inflation, it's free money.

Yeah we kept our mortgage payment the same and have already paid down more principal than we would have previously.

Innsertnamehere · #**969** Posted **Jul 28, 2022, 1:11 PM**

Quote:

Originally Posted by Investing In Chicago

Same. We're at 2.95% on a 30 year jumbo, which is insane. With inflation, it's free money.

US 30 year mortgages are insane from a Canadian perspective. People look at you like you are crazy if you get more than a 5-year term in Canada, and even then I'm not sure if it's even possible to get more than a 10-year term, even if you wanted it. Yet full 30-year mortgages seem almost standard south of the border. It's rare for a Canadian to even finance on a 30 year term (Usually it's 25 years), yet alone have a fixed mortgage rate that entire time

jmecklenborg · #**970** Posted **Jul 28, 2022, 2:17 PM**

Quote:

Originally Posted by Innsertnamehere

US 30 year mortgages are insane from a Canadian perspective. People look at you like you are crazy if you get more than a 5-year term in Canada, and even then I'm not sure if it's even possible to get more than a 10-year term, even if you wanted it. Yet full 30-year mortgages seem almost standard south of the border. It's rare for a Canadian to even finance on a 30 year term (Usually it's 25 years), yet alone have a fixed mortgage rate that entire time

It's hard to find information on the history of mortgage lending in the United States. Here is one link that seems reasonably accurate based on what I have read previously:
https://www.grarate.com/article/hist...y%20homebuyers.

There is a fantastic book from 1986 that goes into much more detail:
https://www.amazon.com/Crabgrass-Fro...s%2C102&sr=8-1

For whatever reason, this book is not well-known, despite the fact that the author is still alive and in fact just gave a talk in my city back in April that unfortunately I was not able to attend.

jmecklenborg · #**971** Posted **Jul 28, 2022, 2:28 PM**

Quote:

Originally Posted by jmecklenborg

For whatever reason, this book is not well-known, despite the fact that the author is still alive and in fact just gave a talk in my city back in April that unfortunately I was not able to attend.

Also, the book made a very strong argument, way back in 1986, that the anomalous character of postwar U.S. cities was primarily the history of mortgage lending - not the interstate highways, not the lack of public transportation, not the invention of the hi-rise downtown office building, and definitely not single-family home zoning.

We saw everything change in every U.S. city - large and small - when the banks stopped lending speculatively for suburban SFH subdivisions and condo complexes after the 2008 nuclear meltdown. Previously, the banks lent money like candy to developers who built many more homes and apartment/condo units that cities typically needed. That's how we ended up with urban decay even as metro area populations grew.

When that practice ended, it took a few years, but around 2015 the excess housing built ten years prior was absorbed by the growing population. The unwillingness to lend for large-scale greenfield development meant a de facto growth boundary now ringed every U.S. city. Enter the house flippers and infill developments in forgotten city neighborhoods.

dave8721 · #**972** Posted **Jul 30, 2022, 4:08 AM**

Bezos family dropping $78 million for 2 neighboring Coral Gables mansions. $34 and $44 million because why not when you have monopoly money.
https://therealdeal.com/miami/2022/0...nsion-for-44m/

lio45 · #**973** Posted **Jul 31, 2022, 2:54 AM**

I really love this one. Condo in a prewar building that's directly on the Riverwalk in San Antonio. It's behind the large tree on the right:

https://www.realtor.com/realestatean...5_M71113-05150

But Texas property taxes are just crazy. If I'm reading the listing correctly, it's $15k a year... plus $600/month HOA fees?!?

If I bought that right now (without a mortgage), the place would still cost me $1,882 per month?!?!?!?

I'm pretty sure I could rent something nice in San Antonio for ~$2,000 per month and use the $700,000 on something else .....

Owning a place in Texas is not advantageous at all for someone like me who doesn't earn any income in the state. I'd have all the downside (crazy property taxes) and none of the benefits.

JManc · #**974** Posted **Jul 31, 2022, 4:57 AM**

Quote:

Originally Posted by lio45

I really love this one. Condo in a prewar building that's directly on the Riverwalk in San Antonio. It's behind the large tree on the right:

https://www.realtor.com/realestatean...5_M71113-05150

But Texas property taxes are just crazy. If I'm reading the listing correctly, it's $15k a year... plus $600/month HOA fees?!?

If I bought that right now (without a mortgage), the place would still cost me $1,882 per month?!?!?!?

I'm pretty sure I could rent something nice in San Antonio for ~$2,000 per month and use the $700,000 on something else .....

Owning a place in Texas is not advantageous at all for someone like me who doesn't earn any income in the state. I'd have all the downside (crazy property taxes) and none of the benefits.

I know exactly where that is (good bar on the left side) and the only reason why you would buy it is to flip it as an AirBnB for several times what you'd pay in HOA and taxes. It's a cool area but touristy and that would get old real fast.

Yes, taxes in Texas are ridiculous. Why we shy away from owning more than the two houses we already own. One almost paid off thankfully.

lio45 · #**975** Posted **Jul 31, 2022, 8:10 PM**

You think condos in that area would allow Airbnb? I have a good friend who manages a chunk of my stuff on Airbnb (at my request, we're sticking to doing it only in places where the zoning allows it) and he has shown he's even able to do a decent job remotely.

I'd love to get a place like this, use it a few times a year, and Airbnb it the rest of the time, if it can pay for itself.

AviationGuy · #**976** Posted **Aug 1, 2022, 3:04 AM**

Quote:

Originally Posted by Investing In Chicago

Same. We're at 2.95% on a 30 year jumbo, which is insane. With inflation, it's free money.

When I sold a home in 1982 just outside of Austin in Cedar Park, during one of the worst recessions in the country's history, mortgage rates were about 15 percent. I needed to sell because my employer was laying off so many people and I assumed I would lose my job as well (I didn't, though). I did manage to sell the house to someone who wanted to use it as a rental property. I think it sold it for about $55K. In hindsight, it was a good decision because I hated the long commute to the city where my job was. So I rented for a couple of years, saved some money, and bought a condo close in (stayed in the condo for 8 years).

dktshb · #**977** Posted **Aug 1, 2022, 4:05 AM**

A year into my refi 30 year 2.6% for LA home.

twister244 · #**978** Posted **Aug 1, 2022, 4:36 PM**

I'm definitely getting more Redfin push notifications now of price reductions in Denver (since my profile there thinks I still live there). I suspect, if anything, prices will come into an equilibrium, hopefully they don't keep going up.

So glad I bought when I did though. Bought my Denver condo in 2018, refinanced twice in 2020/2021 to get down to 2.75%. Then bought my condo here in Chicago in Feb. at 3.5%.

I wouldn't be able to afford my place now with current rates. Insane how much things can change in a few months.

pico44 · #**979** Posted **Aug 1, 2022, 4:41 PM**

Quote:

Originally Posted by dktshb

A year into my refi 30 year 2.6% for LA home.

What’s the charge to refinance?

twister244 · #**980** Posted **Aug 1, 2022, 5:50 PM**

Quote:

Originally Posted by pico44

What’s the charge to refinance?

Basically whatever normal closing costs associated with closing a loan. But.... those usually get wrapped into the new loan. So, even if you pay a few thousand in closing costs, it's still a smart move when you are saving hundreds of dollars a month on your refinanced loan.