
30-Year Mortgage Rate Reaches Lowest Level Ever: 2.98% - avonmach
https://www.wsj.com/articles/30-year-mortgage-rate-reaches-lowest-level-ever-2-98-11594908357
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singhrac
Out of curiosity, homeowners, would you recommend it for someone young who
hasn't settled down yet, assuming you could pay off the mortgage fairly
quickly?

Is there a lot of hassle in renting out an apartment using a broker, is hiring
a property manager difficult, are there are surprising fees that make it a bad
investment?

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toomuchtodo
If you’re not overpaying first the property, absolutely. Renting gives you
flexibility, but do you need it if you can work remote? Owning gives you
control over the property, and allows you (instead of your landlord) to
capture any future appreciation.

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0xy
The engineers who think this will enable them to live in North Dakota for
$600/month rent and earn FAANG money are delusional. Even adjusting for cost
of living you're going to get screwed in negotiations.

Owning a property when you're young is a liability in that it prevents you
seeking opportunities which may dramatically boost your career and income.

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toomuchtodo
Not everyone wants to work for a FAANG, whether due to geography, career
goals, skill set, or ethics.

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0xy
When I said "FAANG money" I really just meant Bay Area tier compensation.
Obviously FAANG are in a class of their own but even startup salaries are
inflated compared to anywhere else.

But $200k for a fresh grad isn't going to happen anywhere other than the Bay
Area. Companies only pay that due to insane competition and cost of living.
Why pay $200k for a fresh grad in North Dakota when they could get four
equivalent skilled people for the same price?

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markwaldron
I've seen rates as low as 2.75% on Better (500k mortgage with 5% down). As
someone who was a first-time homebuyer a.little over a year ago, I've been
wrestling with the pros and cons of refinancing now to drop my 4.2% interest
rate. A few friends and coworkers have done it recently, but it seems to only
make sicne if you're not getting killed with closing costs.

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toast0
A $400k 30-year loan at 4.2% has a $2309 payment (bankrate calculator, zeroed
out down payment, tax, and insurance), and a 3% loan payment is $1686.
$625/month savings will quickly pay back any reasonable closing costs. If your
loan balance is higher, it makes more sense.

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tdrp
I was rejected for one a couple of months ago even though I could have paid it
in cash a few times over.

They really don't like start-ups that don't have super regular income flows,
and really don't look at much else if that condition isn't met. I assume a few
people on here are in that bucket.

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bequanna
Pay cash, ‘season’ the property for 6-12 months with renters and THEN finance.

It is typically easier to get financing on property you already own vs. new
purchase.

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toomuchtodo
For those who need the magic incantations, this is a cash out refinance (where
you’re stripping cash out of the property with your equity). If you’re not
taking cash out, it’s just a “rate and term” refi (which are usually very easy
to have done, depending on your financial and credit situation).

