Home › Forums › Financial Markets/Economics › You folks that took out 30 year loans / refinances at 3% or lower…you’re banking now.
- This topic has 38 replies, 10 voices, and was last updated 1 year, 6 months ago by
JPJones.
-
AuthorPosts
-
October 4, 2022 at 6:28 AM #23232October 4, 2022 at 9:07 AM #826749
sdrealtor
ParticipantThose sub 3% mortgages were the opportubnity of a lifetime!
October 4, 2022 at 9:53 AM #826750scaredyclassic
Participantwell…really, you’re just breaking even after tax. not quite a winner yet
October 4, 2022 at 10:21 AM #826751
CoronitaParticipant[quote=scaredyclassic]well…really, you’re just breaking even after tax. not quite a winner yet[/quote]
Yes, but we know that this will change consider we still have a boatload of rate hikes coming….
October 4, 2022 at 10:37 AM #826752Participanti KNOW NOTHING.
October 4, 2022 at 10:39 AM #826753The-Shoveler
ParticipantEveryone’s seems to be telling the fed to “STOP!!!”
Stock market seems to think fed’s going to listen.
October 4, 2022 at 1:40 PM #826755ParticipantLike Russia the fed may declare victory and back away. But maybe not.
Who the heck knows
October 4, 2022 at 3:33 PM #826756
svelteParticipant[quote=Coronita][quote=scaredyclassic]well…really, you’re just breaking even after tax. not quite a winner yet[/quote]
Yes, but we know that this will change consider we still have a boatload of rate hikes coming….[/quote]
Imagine that cash will still be worth less every year when taking into account inflation. Even after more rate hikes.
October 4, 2022 at 3:56 PM #826757CoronitaParticipant[quote=svelte][quote=Coronita][quote=scaredyclassic]well…really, you’re just breaking even after tax. not quite a winner yet[/quote]
Yes, but we know that this will change consider we still have a boatload of rate hikes coming….[/quote]
Imagine that cash will still be worth less every year when taking into account inflation. Even after more rate hikes.[/quote]
But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..
October 4, 2022 at 6:04 PM #826758svelteParticipant[quote=Coronita]
But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..[/quote]
Neither is the money your borrowed.
Let’s say you borrowed 500,000 at 3%. That’s costing you $15K per year.
Let’s say you put that 500,000 in a CD earning 4.25%. That’s 21,250
21250- 15K = 6250.
Say you pay 30% taxes, state and fed. 21250 x .30 = 6375. You’re underwater.
Let’s be very generous and say you pay 25% taxes, state and fed.
21250 x .25 = 5312. you made $900.
October 4, 2022 at 6:06 PM #826759Participant[quote=svelte][quote=Coronita]
But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..[/quote]
Neither is the money your borrowed.
Let’s say you borrowed 500,000 at 3%. That’s costing you $15K per year.
Let’s say you put that 500,000 in a CD earning 4.25%. That’s 21,250
21250- 15K = 6250.
Say you pay 30% taxes, state and fed. 21250 x .30 = 6375. You’re underwater.
Let’s be very generous and say you pay 25% taxes, state and fed.
21250 x .25 = 5312. you made $900.[/quote]
You can deduct interest on a first mortgage on your primary
October 4, 2022 at 8:56 PM #826761Participant[quote=sdrealtor][quote=svelte][quote=Coronita]
But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..[/quote]
Neither is the money your borrowed.
Let’s say you borrowed 500,000 at 3%. That’s costing you $15K per year.
Let’s say you put that 500,000 in a CD earning 4.25%. That’s 21,250
21250- 15K = 6250.
Say you pay 30% taxes, state and fed. 21250 x .30 = 6375. You’re underwater.
Let’s be very generous and say you pay 25% taxes, state and fed.
21250 x .25 = 5312. you made $900.[/quote]
You can deduct interest on a first mortgage on your primary[/quote]
Std deduction too big, interest too tiny
October 4, 2022 at 8:59 PM #826762ParticipantNot worth it
October 4, 2022 at 11:28 PM #826763an
Participant[quote=scaredyclassic]Not worth it[/quote]
Any $ I can make for doing nothing is worth it for me.October 4, 2022 at 11:30 PM #826764ParticipantCD rate doesn’t make me salivate as much as the inflation rate. Transitory, right?
-
AuthorPosts
- You must be logged in to reply to this topic.