Post by pepperpeople on Jun 30, 2015 10:35:08 GMT -5
They are on the upswing for sure ... we locked in in March at 3.75 and now the same loan at our CU is at 4.2. But that's still about 2 points lower than what we paid back in 2007...
4 is still well below the threshold to pay off your mortgage ASAP, though, you know? A mortgage rate similar to a credit card, and I'd be throwing all my extra money at that sucker. 4%? Gives you room to prioritize things like retirement savings. Which is nice.
Well yes, but given I purchased in 2008, looking to buy now for our next house is high compared to then.
But you said you thought rates were high in 2008, too. I'm honestly not trying to be snarky, I'm just really confused. 4% is still so low, and it's been hovering around 3.75-4.0% for quite some time now.
I thought the rates in 08 were more like in 5s. Things were still riding high until the summer/fall of 2008, really, when the big crash happened.
And I wouldn't say now is "high" compared to then, either. I'm just so confused with this post. "high compared to then" would be like a full 2% points higher IMO. Or more.
What are you seeing? Is this a joke? I'm confused.....Mortgage rates are incredibly low right now from a historic perspective...
Well yes, but given I purchased in 2008, looking to buy now for our next house is high compared to then.
I don't think your experience was universal. I also bought in 2008, and am sitting with @mx. We got 6.125%. Even that was historically pretty good; we refi'ed in 2010 to get down to 4.375%.
Post by LoveTrains on Jun 30, 2015 10:56:32 GMT -5
ssmjlm what kind of rate did you have in 2008? Was it for a 15 or a 30 year? I'm not seeing how it was possible to have something in the 4s (or lower) in 2008 based on the historical data I'm seeing for a 30 year fixed in 2008. Is it possible you refi'ed?
Post by whitemerlot on Jun 30, 2015 10:59:54 GMT -5
We bought our first house in sept 01 at 7%. We refinanced to 5.625 later. We bought our current house in January 2013 at 3.25. All 30 year loans. I think 4 is still great!
I don't think your experience was universal. I also bought in 2008, and am sitting with @mx. We got 6.125%. Even that was historically pretty good; we refi'ed in 2010 to get down to 4.375%.
Yeah I mean we did close in March before the financial shit truly hit the fan, but I didn't think rates dropped super low until a few years later at least. We didn't refi until 2013, well below 3% but for a 10 yr term.
According to my handy historical chart, they didn't even drop below 4% until November 2011.
I mean, mortgage rate issues is one of the risks of selling and buying only 7 years after you did it the first time. But/and I agree that 4% is sort of a non-issue.
I get you OP--we just sold our house and bought a new one. Our rate on our previous house was 3.275. We were lucky to close on our new house when we did as we got below 4% with no pts. But that diff is still $100 more we pay every month in interest. I get that rates are still low in historical terms but I'm glad we bought when we did. ((throws money out the window))
Oh and the Fed is talking about raising the federal fund rate in September for the first time in years so I suspect mortgage rates will go up soon as well.