It’s sad that 2.25% is considered high.
Yup. I had my life savings in a CD at the local Savings and Loan in 1982 earning 16%.It’s sad that 2.25% is considered high.
That doesn’t make it any less sad.It's a savings account. There are other places to park cash if you want higher returns.
My parents opened one for for me in the 70’s. At about the same rate. 18 years later It paid for me college and then some. They never had to add to it.Yup. I had my life savings in a CD at the local Savings and Loan in 1982 earning 16%.
Yes, and when we bought as house in 1987 the interest rate on the loan was 9%. They are all connected, high interest on savings and high interest on borrowing.Yup. I had my life savings in a CD at the local Savings and Loan in 1982 earning 16%.
Houses were a lot cheaper back then so it’s relative. My parents paid 28k for their house in Southern California in 1970. You used to actually be able to save and pay cash for a house. Negative interest rates is why Europe is in the mess it’s in and why we will be soon.Yes, and when we bought as house in 1987 the interest rate on the loan was 9%. They are all connected, high interest on savings and high interest on borrowing.
We took out a fixed interest rate annuity 4 years ago at a flat 3.5% per year. I am curious when it matures next year what rate they will offer.
Yup. We jumped to buy our house in 1983 when mortgage rates plunged from 16% to 12.25 percent.Yes, and when we bought as house in 1987 the interest rate on the loan was 9%. They are all connected, high interest on savings and high interest on borrowing.
We took out a fixed interest rate annuity 4 years ago at a flat 3.5% per year. I am curious when it matures next year what rate they will offer.
Id rather have a 100,,000 dollar house with a 8% mortgage then the the same house costing 700,000 with a 2% mortgage. . Debt is debt. Lower interest rates just means higher prices.. If you were able to refinance that’s a win, but most people refinance and pull money out taking on more and more debt. Consumer debt is currently at an all time high.Yup. We jumped to buy our house in 1983 when mortgage rates plunged from 16% to 12.25 percent.
My daughter refinances here 3.5% mortgage to 2.2% last year.
Just like my neighbor across the street. She and her husband bought their house in 1979 for $75,000. Husband kept taking equity out of the house. He died 6 years ago. 43 years in the house, she still owes $60,000. I can't imagine being in that position. She lost her husband, lost his income, and is 71 now and stuck with a house payment.Id rather have a 100,,000 dollar house with a 8% mortgage then the the same house costing 700,000 with a 2% mortgage. . Debt is debt. Lower interest rates just means higher prices.. If you were able to refinance that’s a win, but most people refinance and pull money out taking on more and more debt. Consumer debt is currently at an all time high.
It even worse when housing prices crash and you end up underwater because of those types of decisions. I’m afraid a lot of people have done just that though.I f interest rates we’re higher neither scenario would happen.Just like my neighbor across the street. She and her husband bought their house in 1979 for $75,000. Husband kept taking equity out of the house. He died 6 years ago. 43 years in the house, she still owes $60,000. I can't imagine being in that position. She lost her husband, lost his income, and is 71 now and stuck with a house payment.
That doesn’t make it any less sad.
I have a friend who bought her house for $70K back in the 1990's. Between $60k in home equity loans and two foreclosures she roughly still owes $130k, after paying most of that time. She's in her mid-60's and on a Social Security limited income. She has roommates to help her pay for her housing related expenses.Just like my neighbor across the street. She and her husband bought their house in 1979 for $75,000. Husband kept taking equity out of the house. He died 6 years ago. 43 years in the house, she still owes $60,000. I can't imagine being in that position. She lost her husband, lost his income, and is 71 now and stuck with a house payment.