Funny to an old man

HHusky

Saw a headline this morning describing mortgage interest rates as “soaring above 3%”. In 1984, in Balmer Hall, I listened to a prof refer to the halcyon, never to return days of rates below 6%. You live long enough and you see things.

LoneStarDawg

HH thinks everyone who’s about to lose 30-40% of their home value needs to put things in perspective

HHusky

LoneStarDawg said:

HH thinks everyone who’s about to lose 30-40% of their home value needs to put things in perspective

My MBA was in finance. I suggest you try not to sell at the bottom of the market. See how that education pays off?

pawz

HHusky said:

LoneStarDawg said:

HH thinks everyone who’s about to lose 30-40% of their home value needs to put things in perspective

My MBA was in finance. I suggest you try not to sell at the bottom of the market. See how that education pays off?

So now you have an MBA and a JD?

LoneStarDawg

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

HHusky

LoneStarDawg said:

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

This isn’t the Tug.

If you don’t need to sell, don’t sell.

But 6% is still a ways off.

dflea

LoneStarDawg said:

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.

No need to spaz like you're in some Tug thread.

GreenRiverGatorz

LoneStarDawg said:

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

Cool your shit flinging and crooked dick swinging or get walking. This ain't the club for this bullshit.

HHusky

dflea said:

LoneStarDawg said:

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.

No need to spaz like you're in some Tug thread.

I think my boss paid 18% in 1982 or thereabouts.

Of course, my money market account was paying 15% too.

creepycoug

HHusky said:

dflea said:

LoneStarDawg said:

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.

No need to spaz like you're in some Tug thread.

I think my boss paid 18% in 1982 or thereabouts.

Of course, my money market account was paying 15% too.

The partners at my law firm used to tell stories about how they and their classmates assumed it would be years, if ever, that they would own a house. Of course, that was a little exaggerated on their parts, but yeah, when the numbers creep up, taking on more debt for more house becomes a simple cashflow problem.

HHusky

creepycoug said:

HHusky said:

dflea said:

LoneStarDawg said:

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.

No need to spaz like you're in some Tug thread.

I think my boss paid 18% in 1982 or thereabouts.

Of course, my money market account was paying 15% too.

The partners at my law firm used to tell stories about how they and their classmates assumed it would be years, if ever, that they would own a house. Of course, that was a little exaggerated on their parts, but yeah, when the numbers creep up, taking on more debt for more house becomes a simple cashflow problem.

It was a pretty awful time to be taking out a home loan, for sure. Neither 18% nor rates below 3% seem sustainable though. Just opposite extremes.

Btw, in 1982, I believe all interest on personal debt was tax deductible. Inflation was high. In retrospect, it was a good time to be a debtor.

creepycoug

HHusky said:

creepycoug said:

HHusky said:

dflea said:

LoneStarDawg said:

Imagine thinking an “MBA in finance” is supposed to impress people.

No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.

What a dumb fuck.

Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.

No need to spaz like you're in some Tug thread.

I think my boss paid 18% in 1982 or thereabouts.

Of course, my money market account was paying 15% too.

The partners at my law firm used to tell stories about how they and their classmates assumed it would be years, if ever, that they would own a house. Of course, that was a little exaggerated on their parts, but yeah, when the numbers creep up, taking on more debt for more house becomes a simple cashflow problem.

It was a pretty awful time to be taking out a home loan, for sure. Neither 18% nor rates below 3% seem sustainable though. Just opposite extremes.

Btw, in 1982, I believe all interest on personal debt was tax deductible. Inflation was high. In retrospect, it was a good time to be a debtor.

Even though I am mortgage free, and have been for some time and thus fear the shock of getting back into, I am thinking about one more "move up" while rates are down. Thinking about Fall, depending on what rates are doing. Yeah, I might overpay for a house; but it will be easy to hold it with low-interest financing and, as I say over and over again, Seattle long-term is not going to get cheaper. I could be wrong; but I'm probably not.

BearsWiin

Happy to have locked in at 2.5% last month

Our first mortgage in 1998 was 7.5%, iirc

Swaye

I refi'ed from 4.25 down to 2.75 a few months ago. It's insane. Unlikely to see sub 3% money the rest of my lifetim.

TheRoarOfTheCrowd

Swaye said:

I refi'ed from 4.25 down to 2.75 a few months ago. It's insane. Unlikely to see sub 3% money the rest of my lifetim.

No kidding, I never thought I would see money this cheap in my lifetime...

1to392831weretaken

6.25% in 2008 (100% with no PMI). Refied a few months back at 2.185%. I'm hoping I can get my repair/remodel done before either the market crashes or the rates shoot up so I can borrow against it to fund the next giant repair. After 17 hours of taping drywall this weekend... Fuck old houses.

PurpleThrobber

Christ. You guys haven’t lived until you bought a house at 10% plus interest requiring 20% down.

EwaDawg

.

PurpleThrobber said:

Christ. You guys haven’t lived until you bought a house at 10% plus interest requiring 20% down.

Been there, done that. I think I was at about 11% in 1990. And, of course 20% down.

Good times.

HoustonHusky

I always like looking at data/charts...

EwaDawg

HoustonHusky said:

I always like looking at data/charts...

I am old and details are fuzzy. I know it was double digits and I purchased around 1990.

Remembering exact details doesn't really add to the narrative.

Property was subsequently refinanced (to 15 yr mtge) and sold, in the early 2000s, after nearly tripling in market value. Thank you first time home buyer incentives.

Enter 1031 exchange for multiple properties. The goal is that income from these rentals will fund at least half of my retirement.

I'll pay for property management before I attempt to manage myself.

Oahu is a lot like Creepy's Seattle. Prices may dip but likely will only continue to increase long term.

Get in. Maximize investment. Figure out exit later. Keep working.

creepycoug

EwaDawg said:

HoustonHusky said:

I always like looking at data/charts...

I am old and details are fuzzy. I know it was double digits and I purchased around 1990.

Remembering exact details doesn't really add to the narrative.

Property was subsequently refinanced (to 15 yr mtge) and sold, in the early 2000s, after nearly tripling in market value. Thank you first time home buyer incentives.

Enter 1031 exchange for multiple properties. The goal is that income from these rentals will fund at least half of my retirement.

I'll pay for property management before I attempt to manage myself.

Oahu is a lot like Creepy's Seattle. Prices may dip but likely will only continue to increase long term.

Get in. Maximize investment. Figure out exit later. Keep working.

Agree with all that. I'm sure @pawz would agree that it pays to take the long view in real estate.