[XBoxBoy]

If you bought 10yr’s at 3.5% and new issues were going for 4%, you would have to lower the price of your bonds to make them attractive to a potential buyer. (After all your notes are paying below going rate, thus less attractive)

The thing to keep in mind here is that the price of an existing bond goes down as interest rates go up, but if interest rates go down, the price of an existing bond goes up. Thus, interest rates and the price of the bond go in opposite directions.

The consequence of this, is that although the bond is insured by the govt, and the interest is guaranteed, the price you can sell the bond can fluctuate. And that fluctuation is inverse to the current interest rates.

Hope that helps,

XBoxBoy

[XBoxBoy]

If you bought 10yr’s at 3.5% and new issues were going for 4%, you would have to lower the price of your bonds to make them attractive to a potential buyer. (After all your notes are paying below going rate, thus less attractive)

The thing to keep in mind here is that the price of an existing bond goes down as interest rates go up, but if interest rates go down, the price of an existing bond goes up. Thus, interest rates and the price of the bond go in opposite directions.

The consequence of this, is that although the bond is insured by the govt, and the interest is guaranteed, the price you can sell the bond can fluctuate. And that fluctuation is inverse to the current interest rates.

Hope that helps,

XBoxBoy

[XBoxBoy]

If you bought 10yr’s at 3.5% and new issues were going for 4%, you would have to lower the price of your bonds to make them attractive to a potential buyer. (After all your notes are paying below going rate, thus less attractive)

The thing to keep in mind here is that the price of an existing bond goes down as interest rates go up, but if interest rates go down, the price of an existing bond goes up. Thus, interest rates and the price of the bond go in opposite directions.

The consequence of this, is that although the bond is insured by the govt, and the interest is guaranteed, the price you can sell the bond can fluctuate. And that fluctuation is inverse to the current interest rates.

Hope that helps,

XBoxBoy

[XBoxBoy]

Mold is something you should definitely consider a potentially serious issue. From my personal experience: About three years ago, my wife and I moved into a recently remodeled rental. Within a week, my wife was having chest pains and trouble breathing. Gradually it got worse, and she went to several doctors including an allergy specialist. None were sure what was causing the problem but mold was given as one possible cause. We didn’t really think there was mold, the house was in good shape. But when I climbed under the house, I found mold growing in the crawl space. Not a lot, but enough. Ultimately we had to move out and break the lease. Three years later, my wife’s health has improved significantly, but her breathing is not what it was before this experience.

So, when my wife and I found a house we were serious about, we had the house thoroughly tested for mold. Like many older houses, some was found. (In the kitchen under the sinks) After a good bit of deliberation, we decided to go ahead and buy the house and do the remediation. It cost us about nine grand to have the cabinets taken out, the walls opened up, and everything cleaned, reinspected and then put back.

After living there for about four months I can tell you that my wife is not suffering from mold in our new house.

So, a couple points:
1) Mold issues can be remediated. It might cost some money, but it can be done. (And be sure to see what other posters said would be needed,)
2) Many places do have mold, so don’t be surprised to find it in a house.
3) Failing to deal with mold issues can have serious medical consequences. (Some people are fine with mold, others are not.)
4) Use contractors who know what they are doing.

In the end, if you look for moisture/mold, and address the issue, you’ll probably end up with a healthy mold free house. If you don’t you run the risk of causing yourself or your family a lot of problems.

Just my experience,

XBoxBoy

[XBoxBoy]

Mold is something you should definitely consider a potentially serious issue. From my personal experience: About three years ago, my wife and I moved into a recently remodeled rental. Within a week, my wife was having chest pains and trouble breathing. Gradually it got worse, and she went to several doctors including an allergy specialist. None were sure what was causing the problem but mold was given as one possible cause. We didn’t really think there was mold, the house was in good shape. But when I climbed under the house, I found mold growing in the crawl space. Not a lot, but enough. Ultimately we had to move out and break the lease. Three years later, my wife’s health has improved significantly, but her breathing is not what it was before this experience.

So, when my wife and I found a house we were serious about, we had the house thoroughly tested for mold. Like many older houses, some was found. (In the kitchen under the sinks) After a good bit of deliberation, we decided to go ahead and buy the house and do the remediation. It cost us about nine grand to have the cabinets taken out, the walls opened up, and everything cleaned, reinspected and then put back.

After living there for about four months I can tell you that my wife is not suffering from mold in our new house.

So, a couple points:
1) Mold issues can be remediated. It might cost some money, but it can be done. (And be sure to see what other posters said would be needed,)
2) Many places do have mold, so don’t be surprised to find it in a house.
3) Failing to deal with mold issues can have serious medical consequences. (Some people are fine with mold, others are not.)
4) Use contractors who know what they are doing.

In the end, if you look for moisture/mold, and address the issue, you’ll probably end up with a healthy mold free house. If you don’t you run the risk of causing yourself or your family a lot of problems.

Just my experience,

XBoxBoy

[XBoxBoy]

Mold is something you should definitely consider a potentially serious issue. From my personal experience: About three years ago, my wife and I moved into a recently remodeled rental. Within a week, my wife was having chest pains and trouble breathing. Gradually it got worse, and she went to several doctors including an allergy specialist. None were sure what was causing the problem but mold was given as one possible cause. We didn’t really think there was mold, the house was in good shape. But when I climbed under the house, I found mold growing in the crawl space. Not a lot, but enough. Ultimately we had to move out and break the lease. Three years later, my wife’s health has improved significantly, but her breathing is not what it was before this experience.

So, when my wife and I found a house we were serious about, we had the house thoroughly tested for mold. Like many older houses, some was found. (In the kitchen under the sinks) After a good bit of deliberation, we decided to go ahead and buy the house and do the remediation. It cost us about nine grand to have the cabinets taken out, the walls opened up, and everything cleaned, reinspected and then put back.

After living there for about four months I can tell you that my wife is not suffering from mold in our new house.

So, a couple points:
1) Mold issues can be remediated. It might cost some money, but it can be done. (And be sure to see what other posters said would be needed,)
2) Many places do have mold, so don’t be surprised to find it in a house.
3) Failing to deal with mold issues can have serious medical consequences. (Some people are fine with mold, others are not.)
4) Use contractors who know what they are doing.

In the end, if you look for moisture/mold, and address the issue, you’ll probably end up with a healthy mold free house. If you don’t you run the risk of causing yourself or your family a lot of problems.

Just my experience,

XBoxBoy

[XBoxBoy]

Mold is something you should definitely consider a potentially serious issue. From my personal experience: About three years ago, my wife and I moved into a recently remodeled rental. Within a week, my wife was having chest pains and trouble breathing. Gradually it got worse, and she went to several doctors including an allergy specialist. None were sure what was causing the problem but mold was given as one possible cause. We didn’t really think there was mold, the house was in good shape. But when I climbed under the house, I found mold growing in the crawl space. Not a lot, but enough. Ultimately we had to move out and break the lease. Three years later, my wife’s health has improved significantly, but her breathing is not what it was before this experience.

So, when my wife and I found a house we were serious about, we had the house thoroughly tested for mold. Like many older houses, some was found. (In the kitchen under the sinks) After a good bit of deliberation, we decided to go ahead and buy the house and do the remediation. It cost us about nine grand to have the cabinets taken out, the walls opened up, and everything cleaned, reinspected and then put back.

After living there for about four months I can tell you that my wife is not suffering from mold in our new house.

So, a couple points:
1) Mold issues can be remediated. It might cost some money, but it can be done. (And be sure to see what other posters said would be needed,)
2) Many places do have mold, so don’t be surprised to find it in a house.
3) Failing to deal with mold issues can have serious medical consequences. (Some people are fine with mold, others are not.)
4) Use contractors who know what they are doing.

In the end, if you look for moisture/mold, and address the issue, you’ll probably end up with a healthy mold free house. If you don’t you run the risk of causing yourself or your family a lot of problems.

Just my experience,

XBoxBoy

[XBoxBoy]

Mold is something you should definitely consider a potentially serious issue. From my personal experience: About three years ago, my wife and I moved into a recently remodeled rental. Within a week, my wife was having chest pains and trouble breathing. Gradually it got worse, and she went to several doctors including an allergy specialist. None were sure what was causing the problem but mold was given as one possible cause. We didn’t really think there was mold, the house was in good shape. But when I climbed under the house, I found mold growing in the crawl space. Not a lot, but enough. Ultimately we had to move out and break the lease. Three years later, my wife’s health has improved significantly, but her breathing is not what it was before this experience.

So, when my wife and I found a house we were serious about, we had the house thoroughly tested for mold. Like many older houses, some was found. (In the kitchen under the sinks) After a good bit of deliberation, we decided to go ahead and buy the house and do the remediation. It cost us about nine grand to have the cabinets taken out, the walls opened up, and everything cleaned, reinspected and then put back.

After living there for about four months I can tell you that my wife is not suffering from mold in our new house.

So, a couple points:
1) Mold issues can be remediated. It might cost some money, but it can be done. (And be sure to see what other posters said would be needed,)
2) Many places do have mold, so don’t be surprised to find it in a house.
3) Failing to deal with mold issues can have serious medical consequences. (Some people are fine with mold, others are not.)
4) Use contractors who know what they are doing.

In the end, if you look for moisture/mold, and address the issue, you’ll probably end up with a healthy mold free house. If you don’t you run the risk of causing yourself or your family a lot of problems.

Just my experience,

XBoxBoy

[XBoxBoy]

[quote=werewolf34]More specifically, I’ve been told that a 1% rate increase lowers a home price (SFR) about $100K as a rule of thumb. Does this rule hold for SD?[/quote]

I don’t think this is true anywhere. The amount of discount due to a 1% rate increase would be dependent on the price of the home. So, no set dollar amount would be valid. (It would be true if we were discussing a very specific price range)

If you would like to see what a 1% rate increase will do to home prices, you could play with a mortgage calculator. Pick a monthly payment and a down payment and vary the interest rate.

But, keep in mind that this experiment is not the complete picture. Yes, prices of homes vary with interest rates, but they also vary with people’s attitudes. The housing bubble occurred mostly when interest rates were higher than they currently are. Rates have dropped as house prices have dropped, so clearly there is more at play here than just interest rates.

[XBoxBoy]

[quote=werewolf34]More specifically, I’ve been told that a 1% rate increase lowers a home price (SFR) about $100K as a rule of thumb. Does this rule hold for SD?[/quote]

I don’t think this is true anywhere. The amount of discount due to a 1% rate increase would be dependent on the price of the home. So, no set dollar amount would be valid. (It would be true if we were discussing a very specific price range)

If you would like to see what a 1% rate increase will do to home prices, you could play with a mortgage calculator. Pick a monthly payment and a down payment and vary the interest rate.

But, keep in mind that this experiment is not the complete picture. Yes, prices of homes vary with interest rates, but they also vary with people’s attitudes. The housing bubble occurred mostly when interest rates were higher than they currently are. Rates have dropped as house prices have dropped, so clearly there is more at play here than just interest rates.

[XBoxBoy]

[quote=werewolf34]More specifically, I’ve been told that a 1% rate increase lowers a home price (SFR) about $100K as a rule of thumb. Does this rule hold for SD?[/quote]

I don’t think this is true anywhere. The amount of discount due to a 1% rate increase would be dependent on the price of the home. So, no set dollar amount would be valid. (It would be true if we were discussing a very specific price range)

If you would like to see what a 1% rate increase will do to home prices, you could play with a mortgage calculator. Pick a monthly payment and a down payment and vary the interest rate.

But, keep in mind that this experiment is not the complete picture. Yes, prices of homes vary with interest rates, but they also vary with people’s attitudes. The housing bubble occurred mostly when interest rates were higher than they currently are. Rates have dropped as house prices have dropped, so clearly there is more at play here than just interest rates.

[XBoxBoy]

[quote=werewolf34]More specifically, I’ve been told that a 1% rate increase lowers a home price (SFR) about $100K as a rule of thumb. Does this rule hold for SD?[/quote]

I don’t think this is true anywhere. The amount of discount due to a 1% rate increase would be dependent on the price of the home. So, no set dollar amount would be valid. (It would be true if we were discussing a very specific price range)

If you would like to see what a 1% rate increase will do to home prices, you could play with a mortgage calculator. Pick a monthly payment and a down payment and vary the interest rate.

But, keep in mind that this experiment is not the complete picture. Yes, prices of homes vary with interest rates, but they also vary with people’s attitudes. The housing bubble occurred mostly when interest rates were higher than they currently are. Rates have dropped as house prices have dropped, so clearly there is more at play here than just interest rates.

[XBoxBoy]

[quote=werewolf34]More specifically, I’ve been told that a 1% rate increase lowers a home price (SFR) about $100K as a rule of thumb. Does this rule hold for SD?[/quote]

I don’t think this is true anywhere. The amount of discount due to a 1% rate increase would be dependent on the price of the home. So, no set dollar amount would be valid. (It would be true if we were discussing a very specific price range)

If you would like to see what a 1% rate increase will do to home prices, you could play with a mortgage calculator. Pick a monthly payment and a down payment and vary the interest rate.

But, keep in mind that this experiment is not the complete picture. Yes, prices of homes vary with interest rates, but they also vary with people’s attitudes. The housing bubble occurred mostly when interest rates were higher than they currently are. Rates have dropped as house prices have dropped, so clearly there is more at play here than just interest rates.

[XBoxBoy]

Ahh yes, yurts.

For those of you who might be interested in staying in a yurt I highly recommend Treebones Resort in Big Sur. A yurt with an ocean view. Really nice place, a great romantic getaway.

Homepage

[XBoxBoy]

Ahh yes, yurts.

For those of you who might be interested in staying in a yurt I highly recommend Treebones Resort in Big Sur. A yurt with an ocean view. Really nice place, a great romantic getaway.

Homepage

[Author]

Posts