mossberg590

u/mossberg590@lemmy.world
2 posts · 162 comments

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The point was you don't get a mortgage for the savings today. I was using a simple example. The savings tomorrow make the loan interest repayment worthwhile. There are many factors to be considered.

Re financing comes with fees and doesn't make sense to do often. They hide the fees into the new mortgage. Banks don't lower your costs for funsies.

Today a 30 year fixed at 6.48% for 400k with 80k down payment is $2,400 / month with insurance and property taxes, but let's just say 2,500. That currently will rent a nice 3 bedroom apartment in mid sized metropolitan areas. In 30 years the mortgage might be 3,000. What would a 3 bedroom apartment be renting for? 30 years ago it was 1,200 ish. So 30 years from now, 5,000 for that apartment?

Mortgages make sense for the long term, not just equity (house value goes up) but stability in your monthly housing budget.

That mortgage will end up costing 862k, not 400k. But let's be clear, 6.5% interest is horrendous, you can get a lower rate sometime in the next decade. This plan makes even more sense if the money you save as the years roll by you invest in retirement instead of getting a boat, motorcycle, or avocado toast.

The joy is you get to pay pretty much the same each month for the entire 30 years. Insurance and property taxes will increase but that is fairly small increases. Now go look at what rent was 30 years ago. Imagine paying that today instead. Don't pay off your mortgage early, don't refinance (unless you can drop >1.5%), and ride the long con.

on Snooze · c/lemmyshitpost · 8 pts · 26d

Yes, and it doesn't happen often enough. That is top tier napping.

on Journalism is saved · c/ukraine · 0 pts · 40d

Loomer gives Zelensky exposure to a demographic in the US that would otherwise not listen. I applaud his continued attempts to help his nation regardless of personal pride.