30-Year Mortgage Rate Reaches Lowest Level Ever: 2.98% | Hacker News Reader

30-Year Mortgage Rate Reaches Lowest Level Ever: 2.98%

wsj.com

17 pointsavonmach14 comments

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?

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.

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.

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

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?

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.

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.

We purchased a 3 unit almost a year ago through Chase and got a 30-year mortgage at 3.75%, no points. Very tempting to refinance but our lender says the lowest he can get is 3.175% with points. I tried Better but it keeps saying "no results found"

Paying attention to closing costs is important. Because who likes getting screwed even if you come out ahead. Which you will because dropping your rate from 4.2% to 3% will break even around 18 months and save about $140k in interest.

Find a broker that will get you a no-cost refi (they wrap the costs into the principal, raising your payment about 1-2%). You can easily do better than what you're getting now.

When I looked on Better, 2.75% included points.

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.

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.

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).

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