Home Mail Chat Wallpapers
Go Back   ChiefsPlanet > The Overreaction Lounge (again) > Washington DC and The Holy Land

Reply
 
Thread Tools Display Modes
Old 03-02-2013, 07:40 AM  
BigRedChief BigRedChief is offline
Has a particular set of skills
 
BigRedChief's Avatar
 
Join Date: Dec 2003
Location: On the water
Casino cash: $39727
VARSITY
Interest rates. WTF? Why are we getting almost free money?

I put a contract on a house yesterday. Locked in a rate and loan. Got 3.625 and they gave me $8,800 towards closing costs. Which is obviously more than it costs.

We were able to lower the purchase price because we didn't have any closing costs.

Last time we bought a house we got 5.25% which at the time our loan guy said was the lowest rate since WWII.

So my question for the board is why is the public getting home loans that are maybe 1%-2% above inflation? Where's the money being made or lost?
Posts: 56,539
BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 11:32 AM   #16
Hog Farmer Hog Farmer is offline
Good Donkey = Dead Donkey
 
Hog Farmer's Avatar
 

Join Date: Nov 2001
Casino cash: $31376
Obama's goal is NOT to pay off our debt.
__________________
Trump gonna drain that swamp !
Posts: 21,464
Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.Hog Farmer is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 12:02 PM   #17
LiveSteam LiveSteam is online now
The Constitutional Choo choo
 
LiveSteam's Avatar
 

Join Date: Dec 2009
Location: homeof43conferencetitles
Casino cash: $26862
http://www.familysurvivalcourse.com/.../index_1_2.php
Posts: 23,296
LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.LiveSteam is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 12:23 PM   #18
KC native KC native is offline
Banned
 

Join Date: Feb 2009
Location: Fort Worth, TX
Casino cash: $49339
Quote:
Originally Posted by BigRedChief View Post
I put a contract on a house yesterday. Locked in a rate and loan. Got 3.625 and they gave me $8,800 towards closing costs. Which is obviously more than it costs.

We were able to lower the purchase price because we didn't have any closing costs.

Last time we bought a house we got 5.25% which at the time our loan guy said was the lowest rate since WWII.

So my question for the board is why is the public getting home loans that are maybe 1%-2% above inflation? Where's the money being made or lost?
You can thank ZIRP (Zero Interest Rate Policy for that) for that. Banks are borrowing at 0 or near zero rates. Take that free money and loan it out at 3% and you've got some healthy earnings for awhile.
Posts: 24,899
KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.KC native has an IQ even higher than Frankie's.
  Reply With Quote
Old 03-02-2013, 12:32 PM   #19
Taco John Taco John is offline
αρχάγγελος Μιχαήλ
 
Taco John's Avatar
 

Join Date: Jun 2001
Casino cash: $18037
We were at 5.5% but when I noticed they were down to 3.5%, I jumped on the refinance train. Lower monthly payments, here I come!
__________________
Ehyeh asher ehyeh.

"You and I are told we must choose between a left or right, but I suggest there is no such thing as a left or right. There is only an up or down. Up to man's age-old dream the maximum of individual freedom consistent with order or down to the ant heap of totalitarianism." -Ronald Reagan
Posts: 54,002
Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.Taco John has parlayed a career as a truck driver into debt free trailer and jon boat ownership.
  Reply With Quote
Old 03-02-2013, 01:08 PM   #20
BigRedChief BigRedChief is offline
Has a particular set of skills
 
BigRedChief's Avatar
 

Join Date: Dec 2003
Location: On the water
Casino cash: $39727
VARSITY
Quote:
Originally Posted by Taco John View Post
We were at 5.5% but when I noticed they were down to 3.5%, I jumped on the refinance train. Lower monthly payments, here I come!
sumofabitch 3.5%!
__________________
Fear is the path to the Dark Side. Fear leads to anger, anger leads to hate, hate leads to suffering.
Posts: 56,539
BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.BigRedChief is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 01:16 PM   #21
La literatura La literatura is offline
MVP
 

Join Date: Nov 2011
Casino cash: $5000
Ben Bernanke expects rates to remain this low for a few more years, but according to his testimony to Congress this past week, it will bounce back up to around 4-5% by 2017.

I was relieved to hear it.
Posts: 7,172
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 03-02-2013, 01:19 PM   #22
Mr. Flopnuts Mr. Flopnuts is offline
Nick Dynamite Savior in Waitin
 
Mr. Flopnuts's Avatar
 

Join Date: Mar 2005
Location: The future: Nick Dynamite
Casino cash: $9947665
Quote:
Originally Posted by BigRedChief View Post
I have good credit but not perfect at all. My debt to income ratio is average. Whats considered bad credit these days?

And now after I locked in I hear there are 3.3% loans out there.
It's changed since I've gotten out of the game I'm sure, but in my evaluations of credit worthiness, I started really digging in if the score was under 680.
Posts: 56,122
Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.Mr. Flopnuts is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 01:39 PM   #23
FD FD is offline
Veteran
 
FD's Avatar
 

Join Date: Dec 2006
Location: Los Angeles
Casino cash: $12913
Short term rates are low because the Fed makes them low. Long term rates are not directly driven by the Fed, contrary to what some posters claim. The Fed owns about 10-15% of our debt, not significantly more than it historically has.

Long term rates can be thought of as cumulative short term rates plus inflation. Low long term rates tell us two things, that markets expect growth to remain low and inflation to remain low. Inflation over the past 4 years has been lower than in any other period since the Depression, and all market based measures of future inflation expect it to remain that way over the next 10 years.

A good way to think about interest rates is to read the posts of petegz28 and just reverse everything he says. That guy is just comically wrong about how interest rates and the economy work. He's been consistently wrong in his predictions for years now and has somehow not seemed to have noticed.
__________________
Homer: [looking at watch] Two hours? Why'd they build this ghost town so far away?
Lisa: Because they discovered gold over there!
Homer: It's because they're stupid, that's why. That's why everybody does everything.
Posts: 3,805
FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.
  Reply With Quote
Old 03-02-2013, 01:57 PM   #24
petegz28 petegz28 is offline
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $74227
Quote:
Originally Posted by FD View Post
Short term rates are low because the Fed makes them low. Long term rates are not directly driven by the Fed, contrary to what some posters claim. The Fed owns about 10-15% of our debt, not significantly more than it historically has.

Long term rates can be thought of as cumulative short term rates plus inflation. Low long term rates tell us two things, that markets expect growth to remain low and inflation to remain low. Inflation over the past 4 years has been lower than in any other period since the Depression, and all market based measures of future inflation expect it to remain that way over the next 10 years.

A good way to think about interest rates is to read the posts of petegz28 and just reverse everything he says. That guy is just comically wrong about how interest rates and the economy work. He's been consistently wrong in his predictions for years now and has somehow not seemed to have noticed.
How am i wrong? Please explain how interest rates dont effect our currency and commdities denominated in such?

Btw, the fed has been buying the long end of the curve for quite some time now.

You can squak all you want about inflation being low and explain then to people who are paying double for gas that thy were 4 years ago
__________________
Quote:
Originally Posted by |Zach| View Post
All kinds of people vote. Not enough of those people think highly enough of Trump to make him President but all kinds of people vote.
Quote:
Originally Posted by Donger View Post
So, if they were polling better than Trump and the primary goal was to prevent Hillary from becoming POTUS, perhaps it would have been a better strategic decision to nominate someone who actually had a chance of beating her and preventing that than nominating Donald Trump.
Posts: 87,681
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 02:03 PM   #25
stonedstooge stonedstooge is offline
Arf! Arf! Arf!
 
stonedstooge's Avatar
 

Join Date: Dec 2007
Location: North
Casino cash: $34273
Quote:
Originally Posted by petegz28 View Post
How am i wrong? Please explain how interest rates dont effect our currency and commdities denominated in such?

Btw, the fed has been buying the long end of the curve for quite some time now.

You can squak all you want about inflation being low and explain then to people who are paying double for gas that thy were 4 years ago
Gas prices are Bush's fault dumbass. Haven't you been listening?/Libtards
__________________
2013 ADOPT A CHIEF
Eric Kush




"Often is a word I seldom use"--JP
Posts: 25,192
stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.stonedstooge is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 02:05 PM   #26
petegz28 petegz28 is offline
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $74227
Quote:
Originally Posted by La literatura View Post
Ben Bernanke expects rates to remain this low for a few more years, but according to his testimony to Congress this past week, it will bounce back up to around 4-5% by 2017.

I was relieved to hear it.
Bernanke is a ****ing moron
__________________
Quote:
Originally Posted by |Zach| View Post
All kinds of people vote. Not enough of those people think highly enough of Trump to make him President but all kinds of people vote.
Quote:
Originally Posted by Donger View Post
So, if they were polling better than Trump and the primary goal was to prevent Hillary from becoming POTUS, perhaps it would have been a better strategic decision to nominate someone who actually had a chance of beating her and preventing that than nominating Donald Trump.
Posts: 87,681
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 02:06 PM   #27
petegz28 petegz28 is offline
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $74227
Quote:
Originally Posted by stonedstooge View Post
Gas prices are Bush's fault dumbass. Haven't you been listening?/Libtards
How could i forgot
__________________
Quote:
Originally Posted by |Zach| View Post
All kinds of people vote. Not enough of those people think highly enough of Trump to make him President but all kinds of people vote.
Quote:
Originally Posted by Donger View Post
So, if they were polling better than Trump and the primary goal was to prevent Hillary from becoming POTUS, perhaps it would have been a better strategic decision to nominate someone who actually had a chance of beating her and preventing that than nominating Donald Trump.
Posts: 87,681
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 02:25 PM   #28
Dayze Dayze is online now
Resident Glue Sniffer
 
Dayze's Avatar
 

Join Date: Nov 2003
Location: Overland Park
Casino cash: $29458
One debt free next yr my wife and I are considering saving a ton of money and either buying a house cash, or only borrowing like 20%. Not sure of the pros or cons of it all just yet though
__________________
Life is 99% inspiration, 1% Perspiration, and 1% Attention to Detial.
Posts: 30,170
Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.Dayze is obviously part of the inner Circle.
  Reply With Quote
Old 03-02-2013, 02:26 PM   #29
La literatura La literatura is offline
MVP
 

Join Date: Nov 2011
Casino cash: $5000
Quote:
Originally Posted by Dayze View Post
One debt free next yr my wife and I are considering saving a ton of money and either buying a house cash, or only borrowing like 20%. Not sure of the pros or cons of it all just yet though
Borrow! Low interest rates are great. Then you can put the cash into higher-returning investment portfolios.

-- not a financial adviser, but I'm reading a lot more into the world of investments and personal finance.
Posts: 7,172
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 03-02-2013, 02:37 PM   #30
FD FD is offline
Veteran
 
FD's Avatar
 

Join Date: Dec 2006
Location: Los Angeles
Casino cash: $12913
Quote:
Originally Posted by petegz28 View Post
How am i wrong?
Exchange rates:


Gas prices:
__________________
Homer: [looking at watch] Two hours? Why'd they build this ghost town so far away?
Lisa: Because they discovered gold over there!
Homer: It's because they're stupid, that's why. That's why everybody does everything.
Posts: 3,805
FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FD Forgot to Remove His Claytex and Got Toxic Shock Syndrome.
  Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump




All times are GMT -6. The time now is 10:11 PM.


This is a test for a client's site.
A new website that shows member-created construction site listings that need fill or have excess fill. Dirt Monkey @ https://DirtMonkey.net
Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2016, vBulletin Solutions, Inc.