Mortgage Rates

[Yadkin]

Originally Posted by dvarapala

Unless your local government levies taxes on your real property - then the value is extremely revelant.

I'm doing OK here in a fiscally responsible county and village. My tax valuation only increased slightly. Meanwhile the market values have gone through the roof.

[Rob]

This is insane, I just got an email from my bank I use for checking and this was their latest "offer" for a HELOC

[Onebadcad]

Originally Posted by Rob

This is insane, I just got an email from my bank I use for checking and this was their latest "offer" for a HELOC

All HELOCs are variable rates, as the usage of the line is usually for ten years--it is impossible to charge a fixed rate under 10.000% to hedge against future draws on the line.

The interest rate they are marketing probably includes an initial teaser rate, at Prime Rate, or even below Prime, for the first year or two, and after that period the index will remain Prime, but the margin, the amount added to Prime to get the actual rate, will increase.

I see these daily, if you want a HELOC, a good rate would be Prime and no higher than Prime plus 1.00%.

Today, Prime is 6.250%, BUT remember, every HELOC I have seen in 30+ years has no annual rate increase limitations, it can go up 5.00% in a given year, AND most HELOCs are capped at 18.000% rate, seen very few lower than that.

[Rob]

Originally Posted by Onebadcad

All HELOCs are variable rates, as the usage of the line is usually for ten years--it is impossible to charge a fixed rate under 10.000% to hedge against future draws on the line.

The interest rate they are marketing probably includes an initial teaser rate, at Prime Rate, or even below Prime, for the first year or two, and after that period the index will remain Prime, but the margin, the amount added to Prime to get the actual rate, will increase.

I see these daily, if you want a HELOC, a good rate would be Prime and no higher than Prime plus 1.00%.

Today, Prime is 6.250%, BUT remember, every HELOC I have seen in 30+ years has no annual rate increase limitations, it can go up 5.00% in a given year, AND most HELOCs are capped at 18.000% rate, seen very few lower than that.

I have never paid more than (Prime - 1) on a heloc, which usually puts me at 1-2%, and I have always paid if off in less than 12 months. Just shocks me the rate these interest rates are growing.

Guessing it is time to shift money around again to take advantage of these interest rates.

[dvarapala]

Originally Posted by Yadkin

I'm doing OK here in a fiscally responsible county and village. My tax valuation only increased slightly. Meanwhile the market values have gone through the roof.

Try living in Illinois sometime. The formula they use to calculate your property taxes is so clever your taxes can go up even though the value of your house went down.

[bsmith]

Originally Posted by Rob

This is insane, I just got an email from my bank I use for checking and this was their latest "offer" for a HELOC

I got this in an email this week.

So I can refinance from my 3.0% mortgage and extend the term out to a new 30 year loan at 6.24% and "save" $379/mo.
Brilliant!!

I don't think I am the ideal target of their marketing.

[Yadkin]

Originally Posted by dvarapala

Try living in Illinois sometime. The formula they use to calculate your property taxes is so clever your taxes can go up even though the value of your house went down.

I lived in New York State for 11 years and saw similar games. My local Town Super had the gall to tell me "We've never raised taxes." They just played with the valuation to bleed as much as they wanted out of us.

The year I left they raised the fee on my professional license by about 300%. Their stated reason was to raise more revenue for unrelated programs from those with "privilege".

Also around that same time was the Thruway Authority bullshit. Originally sold as a 30 year program, at the end would give the state with new bridges and pavement. In year 29 the Legislature decided to keep the tolls, in fact increased them dramatically, again with the stated reason that it was a good stream of revenue. Rural drivers then got to subsidize ferries to NYC.

[GTOguy]

Originally Posted by Yadkin

I'm doing OK here in a fiscally responsible county and village. My tax valuation only increased slightly. Meanwhile the market values have gone through the roof.

You'll always do OK because YADKIN.

[mrvette]

25 years ago I headed south to visit a cyber friend here in Jax Fl. and even though that relationship did not flower, my love of the climate certainly DID, vs Wash DC burb and 4' of snow in my driveway with wind howling 90 mph.....

Floriduh has no state income tax.....7% sales tax, and my property tax is only 600/yr.....on a house pushing 300k in value now.....

I got VERY lucky in that I moved just outside of Jax....into Clay Co. Orange Park where the cost of living is much lower than in Jax the city.....