Someone please explain mortgage interest rates on adjustable rate mortgages

[Ed MOTHERFUCKING G]

Most buyers are not sophisticated enough to be playing these kind of games with their mortgage. Refinancing is not that difficult, they are much better off not messing with ARMs at all.

Agreed.

 

[OliviaTwist]

Damn 9%

 

[Sir ZDuke]

People didn’t learn not to touch ARMs after the 2010 GFC?

 

[Tony D'Amato]

And yet it did nothing of my opinion of you.

U took your time and explained things, Im not even offended by this

 

[chineebai]

Most countries wish they could have a flat rate mortgage like we do here, go with that 99% of the time

 

[jadillac]

Don't try to advise anyone about an ARM loan if you don't understand them.

People end up over their heads. ARMs are generally good if you have a good amount of money and intend on paying the majority (or all) of the loan off BEFORE the A-adjustable part starts.

Because once that kicks in it COULD get really high.

 

[Tony D'Amato]

Damn 9%

From what I understand, the mortgage is only like 2500/month. Dont know how much they owe, but its been jn their fam for a minute. In LA, that aint bad.

My Grandmas mortgage is like $800, but she hasn't fixed her house up at all, and shes ill. But she got no 2nd mortgage or anything. The property value is some ridiculous amount too. Its in Eight Trey/60 territory.

 

[the cac mamba]

An adjustable rate mortgage starts with a low interest rate for the first few years.

i always wondered what the fukk the appeal was. you would think you'd just get a fixed rate no matter what, and refi yourself if it goes down

i locked in a 15 year fixed for 2.7 in 2020

 

[jadillac]

From what I understand, the mortgage is only like 2500/month. Dont know how much they owe, but its been jn their fam for a minute. In LA, that aint bad.

My Grandmas mortgage is like $800, but she hasn't fixed her house up at all, and shes ill. But she got no 2nd mortgage or anything. The property value is some ridiculous amount too. Its in Eight Trey/60 territory.

It would've been good for her to do a cash out refi in 2021 when rates were 2.5%. She could have fixed her house up and paid less per month perhaps than she does now

 

[Tony D'Amato]

It would've been good for her to do a cash out refi in 2021 when rates were 2.5%. She could have fixed her house up and paid less per month perhaps than she does now

Less than $800? She was sick then too. She's been down for a minute.


You follow this shyt too?

 

[King Harlem]

The fed doesn't control this?

So if the rate is 7, the bank can just add 2%, thats fukked up.

Be honest, can Trump fix this?

The Fed works independently from the government.

Typically, the Fed raises interest rates when they are trying to slow down inflation or cool down the economy. We've seen the Fed raise interest rates 11 times from 2022 to 2023. The current federal funds rate is 5.25% to 5.50%, which is the highest level in 22 years. Inflation has cooled, so most analysts anticipate the Fed cutting rates soon.

They typically lower interest rates to boost the economy. We saw the Fed lower interest rates to historic lows around 2007-2009 with housing crisis/the great recession. Something bad will need to happen in order for interest rates to get that low again.

 

[jadillac]

Less than $800? She was sick then too. She's been down for a minute.


You follow this shyt too?

If she is paying 800, then she's probably had the house for a min. Which also means it's probably worth alot of money being in the LA area. You can't get a rundown shack in Cali for that price.

If she did some upgrades she might be sitting on a million plus easily.

 

[Secure Da Bag]

So if the rate is 7, the bank can just add 2%, thats fukked up.

Be honest, can Trump fix this?

Not only will he fix it, he'll listen to Tariq and pass reparations.