Dollar loses reserve status to yen and euro

[Ridgerunner]

Exhibit “A”.

The 30 year lock is what makes it valuable. Don’t be surprised if there is a massive spike in interest rates that drives the value of your house down. If/when interest rates double your house could easily lose 30% or more of its value - but with your locked in interest rate you’ll be making the the same or less of a payment than if you had just bought it at the lower price and financed at the higher rates. This works out OK as long as you don’t have to move.

If a person bought his/her house at a price reasonably reflecting cost of new construction (plus lot) less whatever depreciation is reasonable for that particular house, if applicable, it won’t matter much over time whether the value of the house goes upside down for awhile. Never, ever have I seen construction costs go down and stay down for a long period of time, and housing prices always return to “cost less depreciation” and often better, unless the whole neighborhood or town goes into long-term decline. “Overimprovements”, of course, are an exception.

 

[Texas_Roofer]

Just locked 4.75% fixed mortgage, 0 points for the next 30 years (though I’ll likely set payments to be 25 years). As long as I can keep these old cars running, that’s ME!

Exhibit “A”.

The 30 year lock is what makes it valuable. Don’t be surprised if there is a massive spike in interest rates that drives the value of your house down. If/when interest rates double your house could easily lose 30% or more of its value - but with your locked in interest rate you’ll be making the the same or less of a payment than if you had just bought it at the lower price and financed at the higher rates. This works out OK as long as you don’t have to move.

Actually most think the free spending will first cause inflation which will increase the appraised value of the house. Inflation if unchecked or out of control will then reduce living standards. Meaning the real value could go down while the appraised value is higher. If that occurs the loan will lose value and Manualman will do well on this deal. The reverse situtation is a liquidity crises where interest rates fall to near zero and stays there, so Manualman pays 4.75% when 2% is what others pay

 

[manualman]

…The reverse situtation is a liquidity crises where interest rates fall to near zero and stays there, so Manualman pays 4.75% when 2% is what others pay

So I refi again. How about you just give me 2% right now. Deal??