2.5% 0-point 30-year is here!

[gzz]

Scaredy, I’m skeptical of this higher rate for $175k thing being common. I think try other lenders.

As for rate arbitrage, go for it. Stay conservative when you do. I’d say vanguard utilities etf, BBN, GBAB, VZ, and T.

Not a good play for the average investor, but you can handle it.

[scaredyclassic]

even at 2.5 % mortgage, I’ve got to beat a 4% taxable return to make the investment worth it after taxes. will that be tough over the next 15 to 30 years?

[gzz]

BBN and GBAB are taxed as ordinary income and pay 5 and 5.5%. They are nearly the same so I’d go with GBAB.

The others are taxed at the lower dividend rate, not as ordinary income, and all well over 2.5%. They could all go down long-term, but I don’t think that’s terribly likely. The main risk of them going down is probably President Biden does a big corporate tax increase. But I think that risk is mostly already reflected in their prices.

If you want complete risk free gains, it isn’t going to work. But if you have 2m+ net worth and are playing with 100-150k, I think you want positive expected return, not risk free return.

[scaredyclassic]

when i was paying down the mortgage, i thought, ah, freedom at the end of it. also, look at all this interest im saving.

But when the balance is low, i now think, well, then what? the equity sits there, not growing. why was i in sucha rush to pay it all off?

verily, there is no freedom in this life, financial life is just rearranging deck chairs on the titanic, moving money from this to that.

if rates were 1% id still probably be afraid to take it. too risky. even .5 %, Id be like, well, what if everythings flat for a decade or more?

[gzz]

“the equity sits there, not growing.”

The yield on your residence’s home equity is your use and enjoyment of your house. In government statistics this is called owner equivalent rent. It is, in fact, growing if the rental value of your house, which you avoid by owning the house, is growing.

When you paid down the mortgage, your interest cost went down but your use/enjoyment did not.

[scaredyclassic]

ah right, I forgot about that. So if my house is worth a million, and it’d rent for 60k a year, I’m making 6% tax free by just living there and not selling the house.

but i could still live there and get the 60k worth of owner equiv. rent even if i borrowed money against it. as long as i can still make the payments…

but frankly, id probably be happiest doing nothing.

i want a facemask that says: CAPITALISM IS THE VIRUS …

https://annlew.is/shop/capitalism-is-the-virus-facemask

[scaredyclassic]

[quote=gzz]BBN and GBAB are taxed as ordinary income and pay 5 and 5.5%. They are nearly the same so I’d go with GBAB.

The others are taxed at the lower dividend rate, not as ordinary income, and all well over 2.5%. They could all go down long-term, but I don’t think that’s terribly likely. The main risk of them going down is probably President Biden does a big corporate tax increase. But I think that risk is mostly already reflected in their prices.

If you want complete risk free gains, it isn’t going to work. But if you have 2m+ net worth and are playing with 100-150k, I think you want positive expected return, not risk free return.[/quote]

This morning, i am a definite no. Some days i believe in the future.

Today, i feel we are all doomed financially.

[barnaby33]

I went to LoanCabin and filled out the inquiry paperwork. 2 days later I get an email asking me for some rough details, to which I responded yesterday. Still no response.

Strangely I’ve pinged HLS twice and he’s not responded either. Maybe I’m un-loan-worthy, sniff…
Josh

[svelte]

They are probably swamped right now with rates that low.

[scaredyclassic]

The lenderfi website had a notice thst they were not taking apps for a while.
Crazy!

[Coronita]

[quote=barnaby33]I went to LoanCabin and filled out the inquiry paperwork. 2 days later I get an email asking me for some rough details, to which I responded yesterday. Still no response.

Strangely I’ve pinged HLS twice and he’s not responded either. Maybe I’m un-loan-worthy, sniff…
Josh[/quote]

Im pretty sure it’s just because they are busy with an overwhelming demand to refinance. Did you end up getting a forbearance or did you end up skipping it?. I read somewhere that they changed the rules so that people in forbearance could refinance, so I was curious if there were real examples of this happening.

[svelte]

Now is probably a good time to remind everyone to double and triple check the correct routing numbers before wiring money. Call the recipient via numbers you’ve obtained outside of the email to ensure wiring instructions are correct. Make sure they’ve received the money once you’ve sent it. I’ve been reading more reports of fraudulent addresses being sent via email resulting in large sums of money disappearing. Here is an example from today:

https://www.cnn.com/2020/07/12/us/ray-hushpuppi-alleged-money-laundering-trnd/index.html

“Federal documents detailed how a paralegal at a New York law firm wired nearly $923,000 meant for a client’s real estate refinancing to a bank account controlled by Abbas and his co-conspirators. The paralegal had received fraudulent wire instructions after sending an email to what appeared to be a bank email address but was later identified as a “spoofed” email address, the affidavit said.”

[Coronita]

yeah, before wiring money to an escrow account, make sure you call the escrow company and triple confirm the wiring instructions. When I was doing a 1031 exchange, the escrow companies were very very careful about it.

[barnaby33]

I did not pursue forbearance. As of now I’ve no need for one.
Josh

[treehugger]

I am in process of no cost no points refi to 2.75 with owning, am currently at 3.0, but at no cost decided to do it. Am going to check out the other places listed since we also have a rental condo currently at 3.5% and would love to get that down also!

[Author]

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