this post was submitted on 15 Apr 2024
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[–] ptz@dubvee.org 99 points 7 months ago* (last edited 7 months ago) (13 children)

Yup. Bought at the end of 2019, refinanced in late 2020. Currently have a 15 year mortgage at a fixed 2.1% APR. I literally cannot afford to give this up.

It's less that I want to leave this house, specifically, and more that I just want out of this state. For multiple reasons unrelated to my good mortgage deal, I'm stuck here for the foreseeable future.

On the bright side, I never thought I'd actually own a house so I'll take the win.

[–] RememberTheApollo_@lemmy.world 30 points 7 months ago (2 children)

Ditto. 2.6%. Car loan at 3.2%. Can’t afford a new car, can’t afford to move these days. Yeah, it’s hard to bitch when you’re glad to have a home, but it’s a figurative “house arrest” when market forces trap you.

[–] mynamesnotrick@lemmy.zip 9 points 7 months ago* (last edited 7 months ago)

Yep, 2.7% here. Bought in summer 2020. I really like the house, but the property is challenging as its a big slope. I didn't realize all the challenges in dealing with that. However, it's starting to grow on me and I'm still getting what I want out of my land its... just... more work and money. I got such a good deal it doesn't make sense to leave.

[–] bl_r@lemmy.dbzer0.com 6 points 7 months ago (2 children)

Car loan at 3.2%…

I’m so envious, I’m buying a car rn and I’ll be lucky to get 9% or 10%

[–] USSEthernet@startrek.website 4 points 7 months ago

NFCU. Has the best auto loan rates I've seen or heard of anywhere right now. I'm not sure if you're eligible, but worth looking in to.

https://www.navyfederal.org/loans-cards/auto-loans/auto-rates.html

[–] RememberTheApollo_@lemmy.world 2 points 7 months ago (1 children)
[–] bl_r@lemmy.dbzer0.com 2 points 7 months ago (1 children)

Yeah, and that’s with a good (mid 700s) credit score.

I had a place try and reel me in at 14% the other day and I would have laughed if I wasn’t so taken aback. Like, they are closer to the maximum rate than the average…

I might just be unlucky with the dealers I have been to. Unfortunately the ones I’ve heard good things about only have cars out of my budget.

[–] RememberTheApollo_@lemmy.world 2 points 7 months ago

Brutal, and on top all the dealer premiums and markups.

[–] whodovoodoowedo@lemmy.world 11 points 7 months ago (1 children)
[–] ptz@dubvee.org 18 points 7 months ago

WV. Not worse, just differently bad.

[–] cyborganism@lemmy.ca 7 points 7 months ago (7 children)

Don't you have to renew it every 5 years?

[–] ryathal@sh.itjust.works 29 points 7 months ago (2 children)

Nope, US has 15 and 30 year fixed rates available. You can get an arm that has a variable rate, but they've been un popular after 2008, and with the low interest rates not worth it.

[–] cyborganism@lemmy.ca 11 points 7 months ago (2 children)

Holy shit. We don't have that in Canada. I wish we did. A lot of people have lost their homes due to raising interest rates as they have to renew every 5 years or so. Real estate in Canada is so fucked up.

[–] kimpilled@infosec.pub 8 points 7 months ago

The US is unique in the 30 year fixed rate. It’s great if you have one, but it can have some externalities and effects like what we see here.

[–] Today@lemmy.world 1 points 7 months ago (1 children)

Wow! I did not know that! You essentially refinance your home every 5 years? How does that work? With new closing costs and everything?

[–] ghost_towels@sh.itjust.works 3 points 7 months ago* (last edited 7 months ago) (1 children)

Not who you were talking to, but no, the closing costs are one time only. You basically just renew or get a new mortgage somewhere else. Ours is coming up in October, we’re a bit worried but hopeful it won’t be too bad. We’ve got wiggle room as we got a great deal on our house but it’s still going to suck. I have seen a 10 year fixed, might go for that if we can get a good enough rate.

[–] RememberTheApollo_@lemmy.world 1 points 7 months ago

What a scam. Forcing you into new higher interest rates.

[–] Smokeless7048@lemmy.world 1 points 7 months ago

i would have killed for that. got a 1.8% 20 year morgatge in 2021, would have loved to lock in at that.

[–] NOT_RICK@lemmy.world 10 points 7 months ago (1 children)

That’s not a thing in the US like it is in Canada. I can keep my sub 3% mortgage for the 25 years I have left on it.

[–] jballs@sh.itjust.works 2 points 7 months ago

There are Adjustable Rate Mortgages in the US too. My sister-in-law lost her house a while back where her rate went up. I think they lock you in at a low rate for the first 5 years and then they go up. It sounds like a good idea if you're confident that rates are going to stay low and your home will increase in value making it easy to refinance. But in reality, no one can predict the market 5 years out, so I wouldn't recommend it.

[–] GloriousGherkins@lemmy.world 7 points 7 months ago (2 children)

I haven’t heard of having to renew mortgage interest rates. A fixed interest rate should be good for the life of the loan.

I’m at 2.875% on a 25-year loan. I never plan on moving.

[–] bluGill@kbin.social 3 points 7 months ago (1 children)

Depends on where you live. Odds are most people reading this are in the US or Canada where fixed interest rates for life of the loan is common, though you can get an ARM. However in many other countries you cannot get those loans, and those people have to renew every few years.

[–] ghost_towels@sh.itjust.works 2 points 7 months ago (1 children)

Not Canada. Highest I’ve seen is 10 year, most of the time it’s 5.

[–] bluGill@kbin.social 2 points 7 months ago (1 children)
[–] ghost_towels@sh.itjust.works 1 points 7 months ago

I wish we had a 30 year! That would be amazing in some ways. I have to renew this year and I’m not looking forward to it.

[–] navi@lemmy.tespia.org 2 points 7 months ago

15 and 30 year fixed mortgages is pretty unique to the US.

[–] CaptainSpaceman@lemmy.world 4 points 7 months ago (1 children)

In USA, refinance happens only when consumer wants to. Usually to get a better rate or cash in on some equity I think.

[–] cyborganism@lemmy.ca 3 points 7 months ago (2 children)

In Canada, the mortgage has to be renewed every 5 years or less depending on your contract. They'll never let you have a 30 years mortgage on a 2% interest rate the whole time.

[–] ramble81@lemm.ee 3 points 7 months ago (1 children)

So what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?

[–] cyborganism@lemmy.ca 1 points 7 months ago

Well if you can't afford it, you take a temporary mortgage with the objective to sell.

Otherwise you add a lump sum to reimburse the capital to reduce your payments.

Different banks will offer different rates as well so you can shop around and negotiate.

[–] ghost_towels@sh.itjust.works 1 points 7 months ago

We have to renew in Oct and we were looking at BMO and they have a 10 year fixed now.

[–] ptz@dubvee.org 3 points 7 months ago* (last edited 7 months ago)

Nope :)

I think you may be thinking of an ARM (adjustable rate mortgage) where the bank recalculates the interest rate every few years based on the current federal rate (I'm not a money-ologist, but I think that's the broad strokes of it).

I pay 2.1% APR until it's paid off or I choose to refinance again (lol, right). The only thing that changes my monthly payment are the stuff paid from escrow (property taxes and homeowners insurance) since those can vary and the bank takes care of those by folding them into my payment amount.

[–] Fredselfish@lemmy.world 0 points 7 months ago (2 children)

No who told you that? If your interest is fixed you don't fuck with that

[–] Whelks_chance@lemmy.world 8 points 7 months ago (4 children)

In the UK it's quite unusual to have a fixed rate mortgage that goes that long. Normally you'd get a decent rate for 2-5 years, at which point the rate changes to whatever the current default is, and you get the opportunity to fix for another few years

[–] Fredselfish@lemmy.world 4 points 7 months ago

Well mine isn't it fix 30 years. You can get one of those our a floating rate but goddamm I was told to only get a fixed 30 year mortgage. Correct that most people do refinance in 5 years but in today's market no fucking way.

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[–] cyborganism@lemmy.ca 6 points 7 months ago

Canada. Different rules here. I thought it was the same all across the world.

[–] heyitsmikey128@lemmy.world 0 points 7 months ago (1 children)

Not sure what makes you think this, but most mortgages are a contract for 15 to 30 years that lock you into a rate until the house is paid off. You may be thinking of some kind of variable rate mortgage but I though those renewed the rates way more often than 5 years but I'm not sure. It'll all depend on the mortgage terms.

[–] dhork@lemmy.world 23 points 7 months ago (1 children)

The U.S. is the only country in the world where the 30-year fixed rate mortgage is the most popular way that people buy houses. It’s the deliberate result of government policy—government-sponsored enterprises Fannie Mae and Freddie Mac buy mortgages from lenders, ensuring that they continue to offer such loans at little risk to themselves.

https://www.investopedia.com/why-high-mortgage-rates-matter-less-in-the-u-s-than-in-other-countries-8384678

All the non-Americans here can't get 30 year fixed mortgages, that's why a good part of the Lemmings here are confused

[–] Tar_alcaran@sh.itjust.works 4 points 7 months ago

30 year fixed rate with a 30 year pay-back period is available in the Netherlands too, but most people take the 20 year fixed rate for a 30 year repay period, because it's lower interest, and after 20 years, the remaining principal is pretty low.

[–] uberdroog@lemmy.world 6 points 7 months ago

Same exact situation. But I has daughters in a state that just upheld a civil war era law enacted to ban abortion prior to women being able to vote. We made a good amount of cash off the sale but now have to rent at almost twice what my mortgage was. Both my house and the Apt. I am in now in are owned by investment firms. This will be untenable.

[–] Fredselfish@lemmy.world 3 points 7 months ago

Bought ours in January 2018 no way could we afford to give it up our refinance no matter 75k in equity. But our mortgage keeps pushing us too. I have click through 6 offers to refinance just pay my mortgage online each month.

[–] TexasDrunk@lemmy.world 2 points 7 months ago

Same, except for a slightly higher interest rate. My property value has gone up so much and I paid enough down that I could sell and go buy a really nice house in a shitty little town or rural area with cash and have no real bills. I could afford that. I just don't want to leave the convenience of my city.

So I can't leave and honestly I really don't want to yet. I'll leave when I retire.

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