You folks that took out 30 year loans / refinances at 3% or lower…you’re banking now.

[Navydoc]

We refi’d fall 2020, got a 30 yr fixed jumbo VA at 2.5%. Still can’t believe it. Pretty sure we will NEVER see rates like that again.

[brg654]

because i refinanced in 2020, my total expenses are lower today than in 2019, even after the inflation in everything else. meanwhile, my pay is up 34% since 2019.

[scaredyclassic]

[quote=an][quote=scaredyclassic]Not worth it[/quote]
Any $ I can make for doing nothing is worth it for me.[/quote]

Sure but this isn’t nothing. You have risk of interest rate going back down

[The-Shoveler]

[quote=an]CD rate doesn’t make me salivate as much as the inflation rate. Transitory, right?[/quote]

Sooner or later the feds got to pivot,

IMO buying long dated treasuries may really pay off at that moment.

just my thoughts.

[an]

[quote=scaredyclassic][quote=an][quote=scaredyclassic]Not worth it[/quote]
Any $ I can make for doing nothing is worth it for me.[/quote]

Sure but this isn’t nothing. You have risk of interest rate going back down[/quote]Of course it’s nothing. All I had to do was sign some paper.

As for when rates go back down again, I’ll worry about it when that happens. I can always just pay off my loan, or not.

[scaredyclassic]

ok, but what about the years when interest was zero or close to it. if the money was sitting around waiting for this arbitrage, you were losing money for it sitting in a checking account waiting for this opportunity.

[an]

[quote=scaredyclassic]ok, but what about the years when interest was zero or close to it. if the money was sitting around waiting for this arbitrage, you were losing money for it sitting in a checking account waiting for this opportunity.[/quote]
Who said it was sitting in a checking account doing nothing? There are many places you can invest. More real estates or the stock market. How much has rent gone up over the last couple of years?

[scaredyclassic]

[quote=an][quote=scaredyclassic]ok, but what about the years when interest was zero or close to it. if the money was sitting around waiting for this arbitrage, you were losing money for it sitting in a checking account waiting for this opportunity.[/quote]
Who said it was sitting in a checking account doing nothing? There are many places you can invest. More real estates or the stock market. How much has rent gone up over the last couple of years?[/quote]

You can lose money too, waiting for interest arbitrage opportunity.

[an]

[quote=scaredyclassic][quote=an][quote=scaredyclassic]ok, but what about the years when interest was zero or close to it. if the money was sitting around waiting for this arbitrage, you were losing money for it sitting in a checking account waiting for this opportunity.[/quote]
Who said it was sitting in a checking account doing nothing? There are many places you can invest. More real estates or the stock market. How much has rent gone up over the last couple of years?[/quote]

You can lose money too, waiting for interest arbitrage opportunity.[/quote]
Of course you could… but we’re talking about hindsight here.

You would lose money if you didn’t refi to a lower rate.

You would lose money if you got scared and didn’t buy your primary home and continue to rent.

You could lose money…

[scaredyclassic]

So basically at the end of the day, if you could pay your house off and don’t, you refi and have a pile of money to gamble with at 2-3 perc interest.

[an]

[quote=scaredyclassic]So basically at the end of the day, if you could pay your house off and don’t, you refi and have a pile of money to gamble with at 2-3 perc interest.[/quote]
uh… no

[scaredyclassic]

[quote=an][quote=scaredyclassic]So basically at the end of the day, if you could pay your house off and don’t, you refi and have a pile of money to gamble with at 2-3 perc interest.[/quote]
uh… no[/quote]

ok. a pile of money to “invest” and hopefully beat the 2.5% you have to pay, really 3.0 percent return before taxes. a couple negatvie years and you will be a long time coming back at a small interest rate differential arbitrage.

[an]

[quote=scaredyclassic][quote=an][quote=scaredyclassic]So basically at the end of the day, if you could pay your house off and don’t, you refi and have a pile of money to gamble with at 2-3 perc interest.[/quote]
uh… no[/quote]

ok. a pile of money to “invest” and hopefully beat the 2.5% you have to pay, really 3.0 percent return before taxes. a couple negatvie years and you will be a long time coming back at a small interest rate differential arbitrage.[/quote]
History said no. Not hoping but historical data.

[scaredyclassic]

[quote=an][quote=scaredyclassic][quote=an][quote=scaredyclassic]So basically at the end of the day, if you could pay your house off and don’t, you refi and have a pile of money to gamble with at 2-3 perc interest.[/quote]
uh… no[/quote]

ok. a pile of money to “invest” and hopefully beat the 2.5% you have to pay, really 3.0 percent return before taxes. a couple negatvie years and you will be a long time coming back at a small interest rate differential arbitrage.[/quote]
History said no. Not hoping but historical data.[/quote]

history?

past results do not predict future returns.

[an]

[quote=scaredyclassic][quote=an][quote=scaredyclassic][quote=an][quote=scaredyclassic]So basically at the end of the day, if you could pay your house off and don’t, you refi and have a pile of money to gamble with at 2-3 perc interest.[/quote]
uh… no[/quote]

ok. a pile of money to “invest” and hopefully beat the 2.5% you have to pay, really 3.0 percent return before taxes. a couple negatvie years and you will be a long time coming back at a small interest rate differential arbitrage.[/quote]
History said no. Not hoping but historical data.[/quote]

history?

past results do not predict future returns.[/quote]Who said future returns… I’m talking about past results. You’re just moving the goal post.

Also, what about all the people who don’t have 500k last year, but was able to locked in at <3% for 30 years to buy their first home?

Or, what about people who were at 4-5% and refi to lock in at <3%? Take all the $ they save and buy a 5years CD today?

[Author]

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