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cantab
ParticipantI’ve been in this house recently. There is nothing major wrong with it except that it is directly on the main road. It’s in ok condition but you would feel poor living in it compared to most other homeowners in La Jolla.
ParticipantPentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.
My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.
ParticipantPentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.
My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.
ParticipantPentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.
My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.
ParticipantPentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.
My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.
ParticipantPentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.
My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.
ParticipantCould someone please post details on the CME contracts? Some specific questions:
(1) URL to track dates and prices?
(2) If I expect prices to go down more than 16.5%, should I buy or sell the contract, i.e. which way round does it work?
(3) What are commissions and other expenses (market impact) to make a trade? What are margin requirements?
(4) Supposing I own a house outright now worth $1M (i.e. with no mortgage). Does the current 16.5% expectation mean I could sell my house, buy/sell some contracts, collect $165,000, rent for four years, and then receive enough money to be able to buy back an equivalent house at whatever its price is in 2011?
If the above scenario is based on a misunderstanding, which part is impossible?
(5) If the scenario is possible, what would the transaction and carrying costs be? I understand abour RE commissions on the sale and purchase. What would be the borrowing costs be to hold on to the CME contract for four years?
ParticipantCould someone please post details on the CME contracts? Some specific questions:
(1) URL to track dates and prices?
(2) If I expect prices to go down more than 16.5%, should I buy or sell the contract, i.e. which way round does it work?
(3) What are commissions and other expenses (market impact) to make a trade? What are margin requirements?
(4) Supposing I own a house outright now worth $1M (i.e. with no mortgage). Does the current 16.5% expectation mean I could sell my house, buy/sell some contracts, collect $165,000, rent for four years, and then receive enough money to be able to buy back an equivalent house at whatever its price is in 2011?
If the above scenario is based on a misunderstanding, which part is impossible?
(5) If the scenario is possible, what would the transaction and carrying costs be? I understand abour RE commissions on the sale and purchase. What would be the borrowing costs be to hold on to the CME contract for four years?
ParticipantCould someone please post details on the CME contracts? Some specific questions:
(1) URL to track dates and prices?
(2) If I expect prices to go down more than 16.5%, should I buy or sell the contract, i.e. which way round does it work?
(3) What are commissions and other expenses (market impact) to make a trade? What are margin requirements?
(4) Supposing I own a house outright now worth $1M (i.e. with no mortgage). Does the current 16.5% expectation mean I could sell my house, buy/sell some contracts, collect $165,000, rent for four years, and then receive enough money to be able to buy back an equivalent house at whatever its price is in 2011?
If the above scenario is based on a misunderstanding, which part is impossible?
(5) If the scenario is possible, what would the transaction and carrying costs be? I understand abour RE commissions on the sale and purchase. What would be the borrowing costs be to hold on to the CME contract for four years?
ParticipantThis house, 809 Lamplight in La Jolla, sold for $730,000 in 2002. I remember the house from then. It was one of the creepiest in all of La Jolla, decorated like a low-rent, musty version of the Playboy mansion. Made you feel like a sex offender had been holed up in it.
I did think at the time that it was a good opportunity to be remodeled at a profit, but it would have been a big project and even in 2002 prices seemed high. The house has some unchangeable drawbacks: little useable yard (they have improved this), on a noisy main street, and too low down on La Jolla Mesa to have a view.
It has been completely rebuilt, and nicely. I don’t know how much was done before and after the November 2006 sale at $1,800,000.
ParticipantThis house, 809 Lamplight in La Jolla, sold for $730,000 in 2002. I remember the house from then. It was one of the creepiest in all of La Jolla, decorated like a low-rent, musty version of the Playboy mansion. Made you feel like a sex offender had been holed up in it.
I did think at the time that it was a good opportunity to be remodeled at a profit, but it would have been a big project and even in 2002 prices seemed high. The house has some unchangeable drawbacks: little useable yard (they have improved this), on a noisy main street, and too low down on La Jolla Mesa to have a view.
It has been completely rebuilt, and nicely. I don’t know how much was done before and after the November 2006 sale at $1,800,000.
ParticipantJust a guess: the transaction two months ago is when the bank took it back, and the associated number is not a real price.
Yes, the listing agent is probably male. The agent at the open house with her name on the flyer was someone else. Neither one checked the photo.
ParticipantJust a guess: the transaction two months ago is when the bank took it back, and the associated number is not a real price.
Yes, the listing agent is probably male. The agent at the open house with her name on the flyer was someone else. Neither one checked the photo.
ParticipantHLS, I am sure you are right about the 30 yr fixed at PLCU.
The loan I got is their 1 yr ARM jumbo at 4.25% initial rate. What is special about this is that the maximum it can adjust is 1% per year. Next year it will be 5.25%, then 6.25% etc. worst-case.
Their 3yr starts 1% higher, the 5yr 1.5% higher. Doing the math, the 3yr cannot be better than the 1yr and it takes many years for the 5yr to be potentially better.
Given excellent credit, stable job, and LTV under 50%, I am not worried about being able to refinance again when desirable.
The Pt Loma loan has no prepay penalty, no points, no origination fee. Total closing were $900 title insurance, $425 escrow fee, and about $400 miscellaneous fees. Nothing else. (Their no-closing-cost option is a bad deal since their closing costs are so low.)
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