[(former)FormerSanDiegan]

AT age 26, you should not worry that much where stocks will be 5 years from now.

I am in my early 40’s. When I was 26 we were just recovering from recession.

If I had put $5000 into the S&P 500 when I was 26 it would be worth over $12000 today, add another ~$2000 in dividends and that’s not a horrible rate of return. Add to that the fact that we are on the back side of a 40-50% bear market and that stocks have returned nothing over the past decade.

If this Roth money is strictly for retirement :
If I were you I would drop about $3-4k into stocks at semi-intervals over the next 4 months. (assuming you can buy with either no-load or small fee of less than $10) Buy at the end of days where we see a huge decline. Keep the other $1-2K in Money Market until next year’s contribution. Rinse and repeat until you no longer qualify to contribute to a Roth.

In 20 years you will thank me.

If this Roth money is mainly for retirement, but you are considering it a place to grow money for the next 5 years for another reasons (some people do this because of provisions in the tax code e.g. to buy a house), then I wouldn’t put more than 20% into stocks.

[(former)FormerSanDiegan]

AT age 26, you should not worry that much where stocks will be 5 years from now.

I am in my early 40’s. When I was 26 we were just recovering from recession.

If I had put $5000 into the S&P 500 when I was 26 it would be worth over $12000 today, add another ~$2000 in dividends and that’s not a horrible rate of return. Add to that the fact that we are on the back side of a 40-50% bear market and that stocks have returned nothing over the past decade.

If this Roth money is strictly for retirement :
If I were you I would drop about $3-4k into stocks at semi-intervals over the next 4 months. (assuming you can buy with either no-load or small fee of less than $10) Buy at the end of days where we see a huge decline. Keep the other $1-2K in Money Market until next year’s contribution. Rinse and repeat until you no longer qualify to contribute to a Roth.

In 20 years you will thank me.

If this Roth money is mainly for retirement, but you are considering it a place to grow money for the next 5 years for another reasons (some people do this because of provisions in the tax code e.g. to buy a house), then I wouldn’t put more than 20% into stocks.

[(former)FormerSanDiegan]

The focus here has been on conforming rates.

What’s happening in JUMBO-land (above the Jumbo-conforming rate, e.g. 800K) for well-qualified folks (say 800 credit score and 75% LTV) ?

It seems to me that the ultimate depth of the coastal area pricing will depend on this.

[(former)FormerSanDiegan]

The focus here has been on conforming rates.

What’s happening in JUMBO-land (above the Jumbo-conforming rate, e.g. 800K) for well-qualified folks (say 800 credit score and 75% LTV) ?

It seems to me that the ultimate depth of the coastal area pricing will depend on this.

[(former)FormerSanDiegan]

The focus here has been on conforming rates.

What’s happening in JUMBO-land (above the Jumbo-conforming rate, e.g. 800K) for well-qualified folks (say 800 credit score and 75% LTV) ?

It seems to me that the ultimate depth of the coastal area pricing will depend on this.

[(former)FormerSanDiegan]

The focus here has been on conforming rates.

What’s happening in JUMBO-land (above the Jumbo-conforming rate, e.g. 800K) for well-qualified folks (say 800 credit score and 75% LTV) ?

It seems to me that the ultimate depth of the coastal area pricing will depend on this.

[(former)FormerSanDiegan]

The focus here has been on conforming rates.

What’s happening in JUMBO-land (above the Jumbo-conforming rate, e.g. 800K) for well-qualified folks (say 800 credit score and 75% LTV) ?

It seems to me that the ultimate depth of the coastal area pricing will depend on this.

[(former)FormerSanDiegan]

For all of you who think that investing in real estate right now is perfect becasue the govt has a silver bullet think again

There are some areas and circumstances that make sense to buy now. But the reason it makes sense has nothing to do with silver bullets possessed by the government.
It has more to do with favorable cash flow compared to renting.

[(former)FormerSanDiegan]

For all of you who think that investing in real estate right now is perfect becasue the govt has a silver bullet think again

There are some areas and circumstances that make sense to buy now. But the reason it makes sense has nothing to do with silver bullets possessed by the government.
It has more to do with favorable cash flow compared to renting.

[(former)FormerSanDiegan]

For all of you who think that investing in real estate right now is perfect becasue the govt has a silver bullet think again

There are some areas and circumstances that make sense to buy now. But the reason it makes sense has nothing to do with silver bullets possessed by the government.
It has more to do with favorable cash flow compared to renting.

[(former)FormerSanDiegan]

For all of you who think that investing in real estate right now is perfect becasue the govt has a silver bullet think again

There are some areas and circumstances that make sense to buy now. But the reason it makes sense has nothing to do with silver bullets possessed by the government.
It has more to do with favorable cash flow compared to renting.

[(former)FormerSanDiegan]

For all of you who think that investing in real estate right now is perfect becasue the govt has a silver bullet think again

There are some areas and circumstances that make sense to buy now. But the reason it makes sense has nothing to do with silver bullets possessed by the government.
It has more to do with favorable cash flow compared to renting.

[(former)FormerSanDiegan]

[quote=asianautica][quote=carlsbadworker]
However, I don’t think “it is extremely foolish to want a no cost or no fee loan, gambling that rates will go lower.” It really depends on individual situation (e.g. how much cash you have on hand, what job security youhave, what is your overall financial plan, etc).
[/quote]
I think I’ll side w/ HLS on this one. If you don’t have a few grand to buy down rates, then you’re probably extending a little too much to buy the house. If you are not sure of your job security, then you shouldn’t be buying a house. Point is, If you can’t afford to pay a few grand up front to get you a better rate, you should rethink the house you’re buying. It might be too much for you. Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]

Just because someone has a few thousand or a few tens of thousands does not mean they should spend it to lower the rate. It depends on how long they plan to stay in the property and the amount of time it takes to recoup those costs.

One might be willing to pay a higher rate and save their cash if it takes more than 3 or 4 years to break even on the costs one is paying.

The informed consumer should be offered a range of rates and costs and find the best rate/cost balance for their particular situation. This rarely happens.

[(former)FormerSanDiegan]

[quote=asianautica][quote=carlsbadworker]
However, I don’t think “it is extremely foolish to want a no cost or no fee loan, gambling that rates will go lower.” It really depends on individual situation (e.g. how much cash you have on hand, what job security youhave, what is your overall financial plan, etc).
[/quote]
I think I’ll side w/ HLS on this one. If you don’t have a few grand to buy down rates, then you’re probably extending a little too much to buy the house. If you are not sure of your job security, then you shouldn’t be buying a house. Point is, If you can’t afford to pay a few grand up front to get you a better rate, you should rethink the house you’re buying. It might be too much for you. Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]

Just because someone has a few thousand or a few tens of thousands does not mean they should spend it to lower the rate. It depends on how long they plan to stay in the property and the amount of time it takes to recoup those costs.

One might be willing to pay a higher rate and save their cash if it takes more than 3 or 4 years to break even on the costs one is paying.

The informed consumer should be offered a range of rates and costs and find the best rate/cost balance for their particular situation. This rarely happens.

[(former)FormerSanDiegan]

[quote=asianautica][quote=carlsbadworker]
However, I don’t think “it is extremely foolish to want a no cost or no fee loan, gambling that rates will go lower.” It really depends on individual situation (e.g. how much cash you have on hand, what job security youhave, what is your overall financial plan, etc).
[/quote]
I think I’ll side w/ HLS on this one. If you don’t have a few grand to buy down rates, then you’re probably extending a little too much to buy the house. If you are not sure of your job security, then you shouldn’t be buying a house. Point is, If you can’t afford to pay a few grand up front to get you a better rate, you should rethink the house you’re buying. It might be too much for you. Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]

Just because someone has a few thousand or a few tens of thousands does not mean they should spend it to lower the rate. It depends on how long they plan to stay in the property and the amount of time it takes to recoup those costs.

One might be willing to pay a higher rate and save their cash if it takes more than 3 or 4 years to break even on the costs one is paying.

The informed consumer should be offered a range of rates and costs and find the best rate/cost balance for their particular situation. This rarely happens.

[Author]

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