Probably true. Although the rate buydown may be worth it to the builder. They can’t afford to hold inventory and often have commercial financing to pay off quickly after homes are built.
Housing market
- Thread starter simply1
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A 30 year 300,000 mortgage would have a 1,799 payment compared to 1,651 for a 40 year loan per the google machine.
Back in the day when my company was running with the fo-ty the payment was very close to the 30. The 40 had a higher interest rate which wiped out most of the savings.
Bring back the 125% HELOCs!
You’re not taking into account of the interest rate on a 40 year mortgage is at least a half a percent higher than on a 30 year mortgage, so you maybe save $50/ month.
taking a 40 year mortgage is truly a stupid financial move for a borrower, but I would also add, any lender that’s trying to push this on their borrowers should immediately be someone never to do business with.
Yeah my first mortgage after college was 9%, and my parents told me how insanely cheap that was.
Granite is out, quartz is in. LVP is replacing hardwood floors. Get with the times.
Putting down LVP now.
How in the bloody hell is LVP replacing hardwood?!? This will be like Beaverdale homes when a new buyer would pull up the pink carpet and hope the wood was still good.
We'll look back on this and shake our heads. In the meantime I'm writing a fat check to cover wood floors. Son of a
Engineered wood is an insult both to wood and engineers.
30 year loan on $200k at 6.0% would be a payment of $1,199.10
40 year at 6.5% would be $1,170.91.
So it saves a whopping $19 or so per month if the 40 year comes with a half point interest rate penalty.
With no rate penalty, the 40 year payment drops to around $1100 for a monthly savings of about $100. It really comes down to how much lenders penalize the longer term loan.
H
Longer term will almost certainly come with a higher rate because it’s more internet rate risk for the investor.
Agree with points above about it being such a small savings. And amortization comes slower so those who sell 5-10 years down the line will have less equity.
So it doesn’t do much to make things more affordable and doesn’t help to build wealth. It’s a really stupid idea.
Agree with points above about it being such a small savings. And amortization comes slower so those who sell 5-10 years down the line will have less equity.
So it doesn’t do much to make things more affordable and doesn’t help to build wealth. It’s a really stupid idea.
I'm still rocking a granite look a like laminate in my kitchen if that tells you anything.
The stuff you find in the box stores, sure. The good stuff has a sawn wear surface similar to solid 3/4" wood, and the advantage of dimensional stability.
LVP has been huge, but I think the demand is wearing down like every other trend. It's great for homes with pets, but has some definite drawbacks.
