Will mortgage rates continue to drop?

[meccos12]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM.  If you cant afford it, then thats another story.

 

[eyephone]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM.  If you cant afford it, then thats another story.

I think you made your point. It?s like a no brainer. Who wouldn?t want to pay their mortgage off sooner?

 

[sgip]

What's right for one person may not be right for another.

Anyone ever not gotten a raise/bonus that was a "sure thing"? Anyone ever had unexpected expenses? These things can happen over a decade.

I'm not arguing what's best or not. "Best" is situational, not a fact chiseled in stone. Some may want the option of a lower payment and others might not.

My 02c

 

[irvinehomeowner]

What's right for one person may not be right for another.

Anyone ever not gotten a raise/bonus that was a "sure thing"? Anyone ever had unexpected expenses? These things can happen over a decade.

I'm not arguing what's best or not. "Best" is situational, not a fact chiseled in stone. Some may want the option of a lower payment and others might not.

My 02c

Agreed.

Cash flow is key to me.

If you can afford a 15-year fixed, using a 10-year ARM but still paying it like a 15-year fixed will give both the benefit of paying off early on a low interest and the flexibility of being able to pay less in case something happens.

And if within 10 years you see rates trending up, refi into a shorter term fixed instead of dealing with the variable rate or find another ARM.

But as has been said, it depends on your situation and risk aversion. Timing interest rates is like timing housing prices, just go with what you can afford since no one can predict if low rates have "sailed" or not.

 

[qwerty]

What's right for one person may not be right for another.

Anyone ever not gotten a raise/bonus that was a "sure thing"? Anyone ever had unexpected expenses? These things can happen over a decade.

I'm not arguing what's best or not. "Best" is situational, not a fact chiseled in stone. Some may want the option of a lower payment and others might not.

My 02c

Agreed.

Cash flow is key to me.

If you can afford a 15-year fixed, using a 10-year ARM but still paying it like a 15-year fixed will give both the benefit of paying off early on a low interest and the flexibility of being able to pay less in case something happens.

And if within 10 years you see rates trending up, refi into a shorter term fixed instead of dealing with the variable rate or find another ARM.

But as has been said, it depends on your situation and risk aversion. Timing interest rates is like timing housing prices, just go with what you can afford since no one can predict if low rates have "sailed" or not.

If you get a 10/1 arm and pay it down as if it were a 15 year fixed loan, the balance at the end of 10 years would be low enough that the interest rate reset, assuming a 2/2/5 rate cap structure, would not be bad at all. Worst case you can probably pay off a good chunk, of not the entire balance at the end of year 10 if you don?t like the rate reset.

 

[Mety]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

 

[irvinehomeowner]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Not really.  meccos thinks doing a 10-year ARM if you can afford a 15-year fixed "makes no sense".

USC, qwerty, SGIP and myself think that based on your situation, it *could* be beneficial (and at the very least, more flexible) to do the ARM.

 

[eyephone]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Are you sure Mety?

Summary
IHO: for cash flow purpose the choice to paydown loan is key
Mecoos: pay off the mortgage in 15 years and take advantage of the low rate

My comment: I go with Mecco. Not only you don?t have to worry about a house payment or rent during retirement. Another option, is that the rental income can help out during retirement. (Bring in the cash, passive income) Also, you can pass the property to your children that has no mortgage. They just have to worry about the taxes and other expenses.

 

[Mety]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Not really.  meccos thinks doing a 10-year ARM if you can afford a 15-year fixed "makes no sense".

USC, qwerty, SGIP and myself think that based on your situation, it *could* be beneficial (and at the very least, more flexible) to do the ARM.

Oh, my bad. I guess I'm the one who misread 
I thought meccos said "makes sense."

 

[Mety]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Are you sure Mety?

Summary
IHO: for cash flow purpose the choice to paydown loan is key
Mecoos: pay off the mortgage in 15 years and take advantage of the low rate

My comment: I go with Mecco. Not only you don?t have to worry about a house payment or rent during retirement. Another option, is that the rental income can help out during retirement. (Bring in the cash, passive income) Also, you can pass the property to your children that has no mortgage. They just have to worry about the taxes and other expenses.

Sorry, I misread.

Well then that's another reason you shouldn't buy in high MelloRoosed villages like GP or Tustin  > > since you still would have to pay load of money even after you're paid off.

Man, 2% increase in 15 years? I can't even....

 

[eyephone]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Are you sure Mety?

Summary
IHO: for cash flow purpose the choice to paydown loan is key
Mecoos: pay off the mortgage in 15 years and take advantage of the low rate

My comment: I go with Mecco. Not only you don?t have to worry about a house payment or rent during retirement. Another option, is that the rental income can help out during retirement. (Bring in the cash, passive income) Also, you can pass the property to your children that has no mortgage. They just have to worry about the taxes and other expenses.

Sorry, I misread.

Well then that's another reason you shouldn't buy in high MelloRoosed villages like GP or Tustin  > > since you still would have to pay load of money even after you're paid off.

Man, 2% increase in 15 years? I can't even....

Say no more. You summarized Belly?s GP position. Also, throw in the tax SALT cap.
They can transplant a forest and it would not do a thing for me. (Referencing lack of trees thread) 

 

[Mety]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Are you sure Mety?

Summary
IHO: for cash flow purpose the choice to paydown loan is key
Mecoos: pay off the mortgage in 15 years and take advantage of the low rate

My comment: I go with Mecco. Not only you don?t have to worry about a house payment or rent during retirement. Another option, is that the rental income can help out during retirement. (Bring in the cash, passive income) Also, you can pass the property to your children that has no mortgage. They just have to worry about the taxes and other expenses.

Sorry, I misread.

Well then that's another reason you shouldn't buy in high MelloRoosed villages like GP or Tustin  > > since you still would have to pay load of money even after you're paid off.

Man, 2% increase in 15 years? I can't even....

Say no more. You summarized Belly?s GP position.

You mean Yelly?

 

[eyephone]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Are you sure Mety?

Summary
IHO: for cash flow purpose the choice to paydown loan is key
Mecoos: pay off the mortgage in 15 years and take advantage of the low rate

My comment: I go with Mecco. Not only you don?t have to worry about a house payment or rent during retirement. Another option, is that the rental income can help out during retirement. (Bring in the cash, passive income) Also, you can pass the property to your children that has no mortgage. They just have to worry about the taxes and other expenses.

Sorry, I misread.

Well then that's another reason you shouldn't buy in high MelloRoosed villages like GP or Tustin  > > since you still would have to pay load of money even after you're paid off.

Man, 2% increase in 15 years? I can't even....

Say no more. You summarized Belly?s GP position.

You mean Yelly?

Yeah. Idk. He has many and. Who knows he might be on here now. (covertly)

 

[Mety]

Why not the 10-year ARM but still pay the 15-year fixed payment?

Because in 10 years you will have to deal with the possibility of higher rates.  Since the average person is not moving for 13 years or so, most people will have to deal with this risk.  If you can afford the 15 year fixed and plan on paying at the 15 year rate, then it makes no sense to do the 10 year ARM. If you cant afford it, then thats another story.

I think at here, IHO and meccos12 agreed on what they're saying... of course after numerous misunderstandings...

Are you sure Mety?

Summary
IHO: for cash flow purpose the choice to paydown loan is key
Mecoos: pay off the mortgage in 15 years and take advantage of the low rate

My comment: I go with Mecco. Not only you don?t have to worry about a house payment or rent during retirement. Another option, is that the rental income can help out during retirement. (Bring in the cash, passive income) Also, you can pass the property to your children that has no mortgage. They just have to worry about the taxes and other expenses.

Sorry, I misread.

Well then that's another reason you shouldn't buy in high MelloRoosed villages like GP or Tustin  > > since you still would have to pay load of money even after you're paid off.

Man, 2% increase in 15 years? I can't even....

Say no more. You summarized Belly?s GP position.

You mean Yelly?

Yeah. Idk. He has many and. Who knows he might be on here now. (covertly)

LL is Yelly. You didn't know that?

 

[irvinehomeowner]

Agreed. I don't like Mello Roos at all... increasing Mello Roos is even worse.

That's why we were looking at The Branches (Woodbridge) or Willow Bend (Uni Park) over Pavilion Park. The only thing was the lots were so small, the floorplans were meh and they didn't even have a 3CTG.

 

[Mety]

Agreed. I don't like Mello Roos at all... increasing Mello Roos is even worse.

That's why we were looking at The Branches (Woodbridge) or Willow Bend (Uni Park) over Pavilion Park. The only thing was the lots were so small, the floorplans were meh and they didn't even have a 3CTG.

I've seen Willow Bend but never seen The Branches. Where is that at?

Also kind of off topic, but is it true the newer villages don't have the club house? I think I've seen PS ones, but never seen ones from CV, EW, or SG.

 

[irvinehomeowner]

@Mety:

The Branches is the same exact floorplans as Willow Bend but in North Lake area of Woodbridge where Alderwood Elementary originally was located before it moved to Quail Hill.

These were Lyon in-builds.

As for club houses, it depends on the village/hood. Even in older homes, some have club houses, some don't.

 

[Mety]

@Mety:

The Branches is the same exact floorplans as Willow Bend but in North Lake area of Woodbridge where Alderwood Elementary originally was located before it moved to Quail Hill.

These were Lyon in-builds.

As for club houses, it depends on the village/hood. Even in older homes, some have club houses, some don't.

One thing I give for GP is that they got nice club houses. That new one at Novel Park looks so good.

 

[eyephone]

@Mety:

The Branches is the same exact floorplans as Willow Bend but in North Lake area of Woodbridge where Alderwood Elementary originally was located before it moved to Quail Hill.

These were Lyon in-builds.

As for club houses, it depends on the village/hood. Even in older homes, some have club houses, some don't.

One thing I give for GP is that they got nice club houses. That new one at Novel Park looks so good.

Pro:
Don?t care about no clubhouse, park, pool
Noob:
I need the amenities

 

[Mety]

@Mety:

The Branches is the same exact floorplans as Willow Bend but in North Lake area of Woodbridge where Alderwood Elementary originally was located before it moved to Quail Hill.

These were Lyon in-builds.

As for club houses, it depends on the village/hood. Even in older homes, some have club houses, some don't.

One thing I give for GP is that they got nice club houses. That new one at Novel Park looks so good.

Pro:
Don?t care about no clubhouse, park, pool
Noob:
I need the amenities

Pro:
Rent GP
Noob:
Buy GP 

JK 

Assuming you are one of pros, what do you care about the most when buying a home, eyephone?