What did you pay in interest when you bought your home, was it 30 fixed and what year?

[soccerdad72]

So you guys are stuck with variable rates on homes older than 10 years? That's interesting, when you say 5 year deal do you mean a 5 year arm that will be fixed the first 5 years then go variable? Are you paying all closing costs each time you renew?

I'm guessing they mean over 10 year mortgages, not 10 year old homes.

 

[MillauFr]

I believe we are headed towards those mid 1980's loan interest rates. The current housing bubble is due to burst.

For that to happen there would have to be a surplus of houses. Instead there is a huge shortage. There is no way the government can afford 1980s loan interest rates. The interest payments would be crushing. The only way they can repay the debt is to inflate it away.

 

[TippyThomas]

I'm at 2.75% on a home I bought last year.

 

[Donnainnj]

8.25% for a 30 year fixed in 1997. Also paid 1.25 points. Paid off the house in about 16 years.

 

[barkley]

Got me to thinking about other people and what they paid and when. Did your home eventually recover value?

1st home-1991, 11.5% 30 year fixed (thrilled to refi at some point around 9% b/c between rate drop and ability to eliminate pmi it made a significant drop in monthly payments). sold 1998/ small profit

2nd home-1999 (locked in price in 1998), somewhere in the 8% range 30 year fixed. sold 2006 at over 300% of our purchase price (we sold right before bubble burst, our buyers and a subsequent both lost to foreclosure and the home ultimately sold at public auction for 15% of our sales price/about 45% of our original purchase price )

current home-2007, somewhere in low 6% range, 30 year fixed. a fewish years later refi'd into the 4% range on a 30 year but we continued to make payments at the same dollar amount and when we saw the impact went into overdrive with extra payments-paid it off several years ago. were i to list today the prices are well above 100% more than we paid but this is our forever home.

 

[tennisfan]

So you guys are stuck with variable rates on homes older than 10 years? That's interesting, when you say 5 year deal do you mean a 5 year arm that will be fixed the first 5 years then go variable? Are you paying all closing costs each time you renew?

Some mortgage lenders might offer more. Usual mortgages when I bought my house were for 25 years, more recent they have offered longer as people are struggling to get on property ladder.

The fixed term is for 5 years and then either switches to variable or you can fix again, which is what I did. A lot of lenders allow you to fix without any costs. I have never paid to fix my mortgage, could have done to get a slightly better rate but it wasn't worth it as wouldn't have broken even until month 52 out of 60 month deal. The only costs usually with fixed deals are if you break the deal you pay a penalty, how much will depend on how far in to the deal you are.

 

[barkley]

For that to happen there would have to be a surplus of houses. Instead there is a huge shortage.

i'm waiting to see the fallout on rentals that may glut the market. right now (in our state) there's a whole convoluted process to remove tenants that didn't pay under the pandemic protections but many landlords of houses are indicating that they plan to get out of the rental game as soon as they can. they feel they got burned and don't want to be in that position again. more than half of the rental homes in my state are owned by 'small landlords' who only own 1 or 2 units each-they are starting to sell off (up as much as 48% in some counties). i have friends who retained their california homes as rentals when they retired out of state-if they haven't already sold in the last couple of months then they are waiting on the court process to get someone out so they can sell and stop the financial bleeding.

i don't know that there will be a surplus of homes but i think there will be a significant chunk that hit the market and that will have some impact.

 

[MillauFr]

i don't know that there will be a surplus of homes but i think there will be a significant chunk that hit the market and that will have some impact.

That would help things a bit in the Puget Sound where we have a massive shortage of housing. In Seattle most of mom/pop rentals are small apartment buildings. It would be difficult to turn those into owner occupied units.

 

[mom2rb]

First house 30 year, FHA 8% 1999, I refinanced it to get to a 15 year at 6% as soon as I could. This house in 2006, 30 year 6% for 80% and 8.5% for 15%. I have refinanced a few times. We are now at 3% for 10 years. I think the 80/15/5 loans screwed a lot a people.

 

[tvguy]

Original was in 1983 12.25% for 30 years. Always added $100 to the payment. We jumped to buy a house when mortgage rates fell from 16%!
First refi was in 1987. 9% for 30 years
Second refi was in 1991 6.25% for 15 years
While the payment dropped with the refis, we continued to pay the same amount as the first mortgage required (plus the extra $100) so our house was paid off in 2000, 17 years after we bought it.
Our daughter bought a house in 2019, her original mortgage was 4%. She refinanced last year to 2.25%, both 30 years.

 

[neverlandsky]

2009 @ 4.875% - $150K with 3.5% down FHA

2020 @ 3.625% - $394K with 10% down Conventional.

2022? Would like to purchase, there’s currently nothing on the market. If we do purchase it will be 20-30% down Conventional.

 

[Lehuaann]

First home 1997 interest rate 7-8%

Also, 30 yr fixed

 

[barkley]

That would help things a bit in the Puget Sound where we have a massive shortage of housing. In Seattle most of mom/pop rentals are small apartment buildings. It would be difficult to turn those into owner occupied units.

over here on the east side of the state we're seeing local cities make changes to zoning laws to allow for more housing development-things like single family house neighborhoods being able to subdivide their lots to allow for building second houses (basically double the density). very old (beautiful) houses that for decades have been owner occupied with full rental units on the top floor and/or basement that are now designated owner occupied duplexes and triplexes. i won't be surprised if we see a trend that the eastern u.s. had come to force decades ago-mom and pop small apartment buildings bought up by developers, renovated and turned into co-op's.

 

[nene0182]

4.75% 30 year fixed. We bought in 2011.

 

[Darcy03231]

We bought in 1997 and our rate was 9% (good rate at the time). A year later we refinanced to 7%, a year after that to 6% (and went to a 15 year mortgage) and a year after that to 5%, which is where it stayed until we paid it off.

 

[ronandannette]

In UK it is rare to nearly impossible to fix for anything over 10 yrs. Bought my house is 2011 on tracker mortgage with rate of 2.79%. Fixed it 6 yrs ago on 5yr deal of 2.48%. New 5 yr deal last year is currently 1.99%. House is worth approx £125K more than what I paid for it 11 yrs ago

I think we may have different definitions of the words we're using. Here in Canada you can only secure a "term" of interest for a period of 5 years maximum and the it can be either "fixed" (meaning a single rate for the entire term) or "variable" (meaning the rate fluctuates based on the market and interest re-calculated every time the rate changes). The entire mortgage is "amortized" over a period of either 15, 20, 25 or (very rarely) 30 years but must be renewed every time the "term" expires. I think maybe in the US they are calling the amortization period the term.

 

[Minnesota!]

No clue on the first few mortgages - I don't pay attention to that stuff, ha!

But, this house we bought in 2015 or so with around a 4.5. And then refinanced about 15 months ago for 2 something, and dropped 10 years off our loan. Same payment, WAY more going to principal...very nice to look at that number each month!

 

[NannyBeBe]

Our first home was a 30-year fixed, many years ago; paid cash for the one we live in now.

 

[MillauFr]

over here on the east side of the state we're seeing local cities make changes to zoning laws to allow for more housing development-things like single family house neighborhoods being able to subdivide their lots to allow for building second houses (basically double the density). very old (beautiful) houses that for decades have been owner occupied with full rental units on the top floor and/or basement that are now designated owner occupied duplexes and triplexes. i won't be surprised if we see a trend that the eastern u.s. had come to force decades ago-mom and pop small apartment buildings bought up by developers, renovated and turned into co-op's.

Yes my wife and I were looking to retire to Walla Walla or Bend, OR but many of the older houses with character weren't cheap at all. $800k in Walla Walla? Seriously? Who in Walla Walla is making $100k + per year so they can afford a huge mortgage?

 

[Redart59]

The news is acting like the sky is falling and I literally laughed out loud yesterday at because I remember paying about 8% in the mid 90's and being thrilled enough to refi when it dipped to around 6%, it never dipped below in value.

We felt very lucky because I have a cousin a little bit older than me who bought when prices were high. She and her DH went with variable in the 80's to save money when fixed were around 15% & ended up caught up paying around 18% or more when the prime + stuff kicked in. To make it worse, when housing costs dipped they couldn't sell because they barely scraped principal so they were stuck tied to a beast they couldn't escape.

Got me to thinking about other people and what they paid and when. Did your home eventually recover value? Mostly just curious since there seems to be a solid cross section of age, location and means on here.

The sky may be falling for a lot of people, including us. If interest rates explode, we are going to be out a minimum of 50k and possibly more.

We are in the process of building a new home at the very inflated new house prices. We are due to close in September if all goes well but can’t lock into a rate for a few more months.

with a September close date we are planning on putting our currant home in the market in June.

if the rates go crazy, not only will we be paying thousands more in interest on our new home but our currant home will sell for less that we are expecting due to higher rates.

At the beginning of this process we knew we were buying high with a very low interest rate and would be able to sell high.
now if looks like we are buying high with a high interest rate and selling low. It is pretty much worse case scenario.