Trumps first act as POTUS is to screw low income borrowers

[bigkid]

This is biggest non-story of all time. 

[Yamcha]

I'm not afraid of debt on income-producing property, but currently my properties are paid for. I appreciate the concern though.

Maybe you should consider that you don't own anything for 30 years, the bank does. You just pay them double until then. Then you go and brag that you started the 30 year term over again. The bank loves you "saving money".

 

oy vey! shut it down.

[Straw Man]

Smile every time you make pay your mortgage.....for the next 30 years. Brilliant. Why not opt for a 15 pay it off sooner and live your retirement debt free.

Why would I want to get locked into a 15 year payment when I can take my 30 year loan and pay it down in any time frame that I prefer but in any given month I can defer back to the 30 year amortized payment

Did you get that stupid idea from Dave Ramsey?

[Irongrip400]

much more likely to effect the typical brain dead Trump supporter

no effect on me at all

I've never had an FHA loan and last October did what is likely the very last refinance of my house and got a 30 year fixed rate @ 3.25% (by sheer luck I caught the very bottom of the interest rate cycle)

I literally smile every time I pay my mortgage each month when I see my low payment

Why not save yourself some cash and go 15 year? I did that a little over two years ago and with going from 4.25 and buying down a bit getting below 2.8, my payment is essentially the same. I pay extra every month and at a minimum should be paid off in 10 years but am planning on within 5. How old are you? I'd assume since you've refinanced a few times you're older than me. Don't work forever just to pay for a house, you'll want to have some fun in your golden years.

[Straw Man]

Why not save yourself some cash and go 15 year? I did that a little over two years ago and with going from 4.25 and buying down a bit getting below 2.8, my payment is essentially the same. I pay extra every month and at a minimum should be paid off in 10 years but am planning on within 5. How old are you? I'd assume since you've refinanced a few times you're older than me. Don't work forever just to pay for a house, you'll want to have some fun in your golden years.

The ONLY relative benefit of a 15 year fixed is that the rate is lower than a 30 year fixed

That's relative to the time when you get the loan.  My 30 year fixed rate of 3.25% is lower than the current 15 year fixed

I can pay my loan off at any pace I like.  I can make a 15 year amortized payment or a 12 year or a an 18 year

I retain the option of making a 30 year amortized payment or any other larger payment in any month

I can also make occasional large principal reductions and create the same result

You choose to be locked into the higher payment and I choose to have payment options

[Irongrip400]

The ONLY relative benefit of a 15 year fixed is that the rate is lower than a 30 year fixed

That's relative to the time when you get the loan.  My 30 year fixed rate of 3.25% is lower than the current 15 year fixed

I can pay my loan off at any pace I like.  I can make a 15 year amortized payment or a 12 year or a an 18 year

I retain the option of making a 30 year amortized payment or any other larger payment in any month

I can also make occasional large principal reductions and create the same result

You choose to be locked into the higher payment and I choose to have payment options

Let's be real though, the odds of paying it off early are less if you're not forced to. I'm going to save almost $200k in interest over the life of the loan by switching to a 15 year. Like I said, I'm paying higher on purpose, but the difference in payment is only about $150 difference a month. Did the same with a condo I bought back in 07, even though it was technically an investment property when I did the refi, my payment was about the same. The hope is that everything is paid off prior to my oldest going to high school. They all have 529's so that will give me the chance to save for a few more years and take some time off when they are all out the house.

[Straw Man]

Let's be real though, the odds of paying it off early are less if you're not forced to. I'm going to save almost $200k in interest over the life of the loan by switching to a 15 year. Like I said, I'm paying higher on purpose, but the difference in payment is only about $150 difference a month. Did the same with a condo I bought back in 07, even though it was technically an investment property when I did the refi, my payment was about the same. The hope is that everything is paid off prior to my oldest going to high school. They all have 529's so that will give me the chance to save for a few more years and take some time off when they are all out the house.

You must have a tiny loan for the difference in payment on a 15 vs 30 year to only be $150 a month
A loan of 100k @ 2.875% has a payment of 415 for 30 years vs 685 for 15 years.  The reality is that the 30 year would have a higher rate but even if the 30 year rate was 3.375% vs. 2.875% the difference is payment is still over 240 month

For my loan the difference in payment between a 30 and 15 year term is $1324 per month. 

Also, I'm self employed and while I often have months where I make between 15k to 25k (had a month last year that was almost 60k) I also have months where I don't make any money so having the option to make a lower monthly payment is a benefit to me.

Finally, there are a few times per year where I pay an extra 2-4k to principal.  I've done this routinely since I first owned my home.  I can easily pull out my old and trusty HP12C and quickly figure out where I want to be on the amortization schedule or this can also very easily be done online.

Everyone is different but a 15 year fixed is not the right choice for my situation

[Irongrip400]

You must have a tiny loan for the difference in payment on a 15 vs 30 year to only be $150 a month
A loan of 100k @ 2.875% has a payment of 415 for 30 years vs 685 for 15 years.  The reality is that the 30 year would have a higher rate but even if the 30 year rate was 3.375% vs. 2.875% the difference is payment is still over 240 month

For my loan the difference in payment between a 30 and 15 year term is $1324 per month. 

Also, I'm self employed and while I often have months where I make between 15k to 25k (had a month last year that was almost 60k) I also have months where I don't make any money so having the option to make a lower monthly payment is a benefit to me.

Finally, there are a few times per year where I pay an extra 2-4k to principal.  I've done this routinely since I first owned my home.  I can easily pull out my old and trusty HP12C and quickly figure out where I want to be on the amortization schedule or this can also very easily be done online.

Everyone is different but a 15 year fixed is not the right choice for my situation

I paid a bit down before the refinance and was at 4.25 on the original loan. The loan went from 394 to 328 in the four years between original purchase and the the refinance. I too am self employed, and pay myself a salary with quarterly bonuses. The last two years I have put down 25k so hopefully sooner than later I can be done with it. I also have the option to refi to a 30 year if I get into trouble, but hopefully I don't have that problem. Base rate for the 15 year was 2.87 when I did the refi and I bought down a quarter point. 30 years just seemed like forever to me. I want it all done quick.

[Straw Man]

I paid a bit down before the refinance and was at 4.25 on the original loan. The loan went from 394 to 328 in the four years between original purchase and the the refinance. I too am self employed, and pay myself a salary with quarterly bonuses. The last two years I have put down 25k so hopefully sooner than later I can be done with it. I also have the option to refi to a 30 year if I get into trouble, but hopefully I don't have that problem. Base rate for the 15 year was 2.87 when I did the refi and I bought down a quarter point. 30 years just seemed like forever to me. I want it all done quick.

If the 15 year works for you that's all that matters

btw - the monthly payment on 328k @ 2.875% for 30 years is 1361 and the same rate at 15 years is 2245

[Irongrip400]

If the 15 year works for you that's all that matters

btw - the monthly payment on 328k @ 2.875% for 30 years is 1361 and the same rate at 15 years is 2245

I understand that. I paid a decent chunk down before the refi. I also bought down below 2.875


But you're right, it's whatever works best for the borrower. Hope you pay it off early. Now, what was the original point of this thread? 

[tonymctones]

BTW - anyone every wonder why so many millionaires and billionaires suddenly want to work for the government (in essence to become public servants)? 

Why give up all that money they were making to go work for the government

Is it because the Republican plan to privatize everything will eventually yield them and their friends a lot more money in the long run

The one thing Republicans like about government is all the tax revenue.

They love taking tax dollars and funneling them into private hands where a profit motive can be built it which will benefit themselves and the expense of the very tax payers they pretend they want to help

LMFAO for shits sake dude take a break, everything is going to be ok man. Goodness gracious the hate and ignorance coming off your posts are palbable.

[GigantorX]

A SCHEDULED .25% cut that isn't even in effect yet is put in the dumpster and Trump is "screwing middle class homeowners.." And it isn't a tax cut anyways. It's MMI. These facts are out there, easily found and comprehended. More Fake News and misdirection. So, in fact, the middle class didn't have anything lowered on the first place so they didn't have anything raised either.

It was a cut done by Obama on the way out the door designed to trip up Trump and it didn't work. Why didn't Obama do this 8 years ago? Instead he has used middle class as a cynical ploy. How contemptible, I'm sure CNN will shed the appropriate light on this and set it straight!

And some people, predictably, fall for it.

Sad.

[Option D]

Making people actually qualify for home loans is not a bad thing....or were you not alive in 2008 when all those no stip, no proof of income and no money down loans went bad?

You are going to see the undoing of a lot of economic metrics fakery within the govt in the next 2 years. It will be everywhere. There is a bubble in almost everything.

Do you even understand the implications of this mortgage bill? Jesus Christ.

[Straw Man]

A SCHEDULED .25% cut that isn't even in effect yet is put in the dumpster and Trump is "screwing middle class homeowners.." And it isn't a tax cut anyways. It's MMI. These facts are out there, easily found and comprehended. More Fake News and misdirection. So, in fact, the middle class didn't have anything lowered on the first place so they didn't have anything raised either.

It was a cut done by Obama on the way out the door designed to trip up Trump and it didn't work. Why didn't Obama do this 8 years ago? Instead he has used middle class as a cynical ploy. How contemptible, I'm sure CNN will shed the appropriate light on this and set it straight!

And some people, predictably, fall for it.

Sad.

dude - try paying attention

I'm well aware it's a reduction in MIP and not a "tax cut"

I never said it was a tax cut and I also never said Trump was screwing the middle class

I said he was screwing low income borrowers

feel free to explain exactly how a quarter point reduction in MIP was designed to "trip up" Trump

Also, Obama did a prior reduction in MIP by .50% in 2015

https://www.fha.com/fha_mortgage_insurance_2015

[Kazan]

dude - try paying attention

I'm well aware it's a reduction in MIP and not a "tax cut"

I never said it was a tax cut and I also never said Trump was screwing the middle class

I said he was screwing low income borrowers

feel free to explain exactly how a quarter point reduction in MIP was designed to "trip up" Trump

Pretty simple, the MSM can scream from the roof tops how Trump is screwing people

[Straw Man]

Pretty simple, the MSM can scream from the roof tops how Trump is screwing people

sure if you're a conspiracy theorist then everything they did was just to hurt Trump

[Kazan]

sure if you're a conspiracy theorist then everything they did was just to hurt Trump

It was a completely political move by Obama plain and simple.

[Straw Man]

It was a completely political move by Obama plain and simple.

easy to say when providing absolutely no proof

MIP were much lower prior to Obama taking office and they were raised substantially (more than 200%) at the peak of the housing crisis.  Obama lowered them by 50 basis points in 2015 and then lowered them a bit more at the end of his term and this in the one that Trump overturned.

[Yamcha]

Look at this disgusting white cesspool that used to be Detroit. Thank god we are tolerant now and give everyone loans

[Straw Man]

Look at this disgusting white cesspool that used to be Detroit. Thank god we are tolerant now and give everyone loans

No shortage of gangs in and crime in the 1920's in Detroit
http://www.legendsofamerica.com/20th-purplegang.html

What does that have to do with the topic of this thread ?

[Kazan]

easy to say when providing absolutely no proof

MIP were much lower prior to Obama taking office and they were raised substantially (more than 200%) at the peak of the housing crisis.  Obama lowered them by 50 basis points in 2015 and then lowered them a bit more at the end of his term and this in the one that Trump overturned.

Then why wait until the 11th hour to do it? I'm no Obama fan or Trump for that matter, but this reeks of politics

[Straw Man]

Then why wait until the 11th hour to do it? I'm no Obama fan or Trump for that matter, but this reeks of politics

It was a response to the almost 1% jump in mortgage rates that occurred in November and December

https://www.bloomberg.com/news/articles/2016-11-15/spike-in-mortgage-rates-throws-a-wrench-into-u-s-housing-market