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Daniel
ParticipantActually, this makes perfect sense. If you choose to lock your rate, you are actually paying for this privilege (the .25%-.375% you are mentioning). But locking the rate has become so commonplace, people don’t even realize that this comes with a cost.
It’s just like credit card merchant fees that are rolled into the final cost that customers pay. You can’t get a discount at Ralphs for paying cash. Only when some merchant (usually some odd gas station) posts a different (lower) price for cash purchases, we see what those costs actually are.
Your lender is just like the gas station that offers a discount for paying cash: it makes the cost transparent.
ParticipantActually, this makes perfect sense. If you choose to lock your rate, you are actually paying for this privilege (the .25%-.375% you are mentioning). But locking the rate has become so commonplace, people don’t even realize that this comes with a cost.
It’s just like credit card merchant fees that are rolled into the final cost that customers pay. You can’t get a discount at Ralphs for paying cash. Only when some merchant (usually some odd gas station) posts a different (lower) price for cash purchases, we see what those costs actually are.
Your lender is just like the gas station that offers a discount for paying cash: it makes the cost transparent.
ParticipantActually, this makes perfect sense. If you choose to lock your rate, you are actually paying for this privilege (the .25%-.375% you are mentioning). But locking the rate has become so commonplace, people don’t even realize that this comes with a cost.
It’s just like credit card merchant fees that are rolled into the final cost that customers pay. You can’t get a discount at Ralphs for paying cash. Only when some merchant (usually some odd gas station) posts a different (lower) price for cash purchases, we see what those costs actually are.
Your lender is just like the gas station that offers a discount for paying cash: it makes the cost transparent.
Participant[quote=paranoid]30 year fixed at 6.52 !?!
if this stays for a few months, I’ll be finally able to buy a house with cash, because all those immune communicaties will see a hair cut.[/quote]I’d say 6.52 seems a bit much. I think it just broke through 5 percent (for now, at least).
Participant[quote=paranoid]30 year fixed at 6.52 !?!
if this stays for a few months, I’ll be finally able to buy a house with cash, because all those immune communicaties will see a hair cut.[/quote]I’d say 6.52 seems a bit much. I think it just broke through 5 percent (for now, at least).
Participant[quote=paranoid]30 year fixed at 6.52 !?!
if this stays for a few months, I’ll be finally able to buy a house with cash, because all those immune communicaties will see a hair cut.[/quote]I’d say 6.52 seems a bit much. I think it just broke through 5 percent (for now, at least).
Participant[quote=paranoid]30 year fixed at 6.52 !?!
if this stays for a few months, I’ll be finally able to buy a house with cash, because all those immune communicaties will see a hair cut.[/quote]I’d say 6.52 seems a bit much. I think it just broke through 5 percent (for now, at least).
Participant[quote=paranoid]30 year fixed at 6.52 !?!
if this stays for a few months, I’ll be finally able to buy a house with cash, because all those immune communicaties will see a hair cut.[/quote]I’d say 6.52 seems a bit much. I think it just broke through 5 percent (for now, at least).
ParticipantIs your question directed to me? Well, I’m not sure I could come up with a straight answer, but let me deflect it a bit by saying that the house price/rent ratio is a lot like the stock P/E ratio (with certain exceptions and caveats, of course). You only need to divide it by 12 (to consider yearly instead of monthly rent), and presto! you get something that looks a lot more familiar.
ParticipantIs your question directed to me? Well, I’m not sure I could come up with a straight answer, but let me deflect it a bit by saying that the house price/rent ratio is a lot like the stock P/E ratio (with certain exceptions and caveats, of course). You only need to divide it by 12 (to consider yearly instead of monthly rent), and presto! you get something that looks a lot more familiar.
ParticipantIs your question directed to me? Well, I’m not sure I could come up with a straight answer, but let me deflect it a bit by saying that the house price/rent ratio is a lot like the stock P/E ratio (with certain exceptions and caveats, of course). You only need to divide it by 12 (to consider yearly instead of monthly rent), and presto! you get something that looks a lot more familiar.
ParticipantIs your question directed to me? Well, I’m not sure I could come up with a straight answer, but let me deflect it a bit by saying that the house price/rent ratio is a lot like the stock P/E ratio (with certain exceptions and caveats, of course). You only need to divide it by 12 (to consider yearly instead of monthly rent), and presto! you get something that looks a lot more familiar.
ParticipantIs your question directed to me? Well, I’m not sure I could come up with a straight answer, but let me deflect it a bit by saying that the house price/rent ratio is a lot like the stock P/E ratio (with certain exceptions and caveats, of course). You only need to divide it by 12 (to consider yearly instead of monthly rent), and presto! you get something that looks a lot more familiar.
Participant200 is the upper range of acceptable, in my opinion. This depends, of course, on interest rates. When interest rates were higher, the ratio used to be lower (150 or so). But, speaking for myself, today I would be a buyer at around the 200 mark. It wouldn’t be a screaming deal, mind you, but it would be “acceptable”.
Nowadays the low-end areas are way below 200, while the higher end still levitates at 250 or so (like in your example).
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