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Thread: fixed rate mortgage

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    fixed rate mortgage

    My son has just purchased a home on a fixed rate 30 year mortgage. $225K home loan. His wife told me they got it at somewhere around 2.6%. I find this incomprehensible, especially when considering that the government has issued a CPI of around 6% for the year. What am I missing?

    A friend told me he heard something about legislation being considered to actually 'adjust' fixed rate mortgages, but I have looked online and can find nothing.

    I listen to lots of opinions on price inflation and they go both ways and both sides have good points. Most of the 'experts' believe the money is going to hell and quick. I am pretty much in the same camp. I see things may be a replay of the inflation of the 70's. I admit, I don't know much and my financial acumen seems kinda lacking; I mean, hey, I invested in gold and silver but I've watched the stock market go nuclear.
    " If you are on the wrong road progress means doing an about-turn and walking back to the right road and in that case the man who turns back soonest is the most progressive man. There is nothing progressive about being pig-headed and refusing to admit a mistake. And I think if you look at the present state of the world it's pretty plain that humanity has been making some big mistake. We're on the wrong road. And if that is so we must go back. Going back is the quickest way on.” ---C. S. Lewis

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    Unobtanium osoab's Avatar
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    Re: fixed rate mortgage

    Did you son read all of the fine print? I don't want to speculate. The vampires bankers probably have something in there for currency reset, etc.
    “Democracy is also a form of worship. It is the worship of Jackals by Jackasses. It is the theory that the common people know what they want, and deserve to get it good and hard.”
    H.L. Mencken

    "The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary."
    H. L. Mencken

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    Militant Wing of the Salvation Army midnight rambler's Avatar
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    Re: fixed rate mortgage

    I've watched the stock market go nuclear.
    Bidness is going gangbusters at the casino but remember...the house always wins.
    "I'd rather go down the river with seven studs than one hundred shitheads." --Colonel Charlie Beckwith

    "If both the past and the external world exist only in the mind, and if the mind itself is controllable-what then?" --George Orwell

    "It's not a matter of what is true (reality) that counts but a matter of what is perceived to be true (reality)." --Henry Kissinger

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    Re: fixed rate mortgage

    Banks have armed security guards for a reason. That would be the illusion that they have something valuable to protect.

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    Unobtanium EE_'s Avatar
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    Re: fixed rate mortgage

    Quote Originally Posted by woodman View Post
    My son has just purchased a home on a fixed rate 30 year mortgage. $225K home loan. His wife told me they got it at somewhere around 2.6%. I find this incomprehensible, especially when considering that the government has issued a CPI of around 6% for the year. What am I missing?

    A friend told me he heard something about legislation being considered to actually 'adjust' fixed rate mortgages, but I have looked online and can find nothing.

    I listen to lots of opinions on price inflation and they go both ways and both sides have good points. Most of the 'experts' believe the money is going to hell and quick. I am pretty much in the same camp. I see things may be a replay of the inflation of the 70's. I admit, I don't know much and my financial acumen seems kinda lacking; I mean, hey, I invested in gold and silver but I've watched the stock market go nuclear.
    The only people getting rich on the stock market are those that are cashing out at these levels. The rest are feeling rich for the moment, but if something happens to tank the market and all the stock wealthy fail to get out with their money, how rich are they really?
    On the other hand, you/we are still holding our wealth and something can also happen to cause a major run on PM's, and make us wealthy.
    It's too soon to add up everyone's score, the game isn't over yet.
    DON'T TAKE THE VACCINE!

    THE SHIT HAS HIT THE FAN!

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    Unobtanium Shami-Amourae's Avatar
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    Re: fixed rate mortgage

    The stock market only goes up over time. It's fully rigged to preserve the wealth of the ruling class. The Federal Reserve simply prints money and pumps it up.
    If there's a "crash" it will be short lived followed by more money printing.
    This happens in 3rd world countries like Venezuela and Zimbabwe where their currencies have collapsed, but the ruling class preserve their wealth within their own stock markets.

    The ruling class gives insider knowledge to those that obey and serve them what the Fed will pump artificially.

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    Unobtanium EE_'s Avatar
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    Re: fixed rate mortgage

    Quote Originally Posted by Shami-Amourae View Post
    The stock market only goes up over time. It's fully rigged to preserve the wealth of the ruling class. The Federal Reserve simply prints money and pumps it up.
    If there's a "crash" it will be short lived followed by more money printing.
    This happens in 3rd world countries like Venezuela and Zimbabwe where their currencies have collapsed, but the ruling class preserve their wealth within their own stock markets.

    The ruling class gives insider knowledge to those that obey and serve them what the Fed will pump artificially.
    I can't dispute that, however there are things money printers may not be able to control, like a war with China, China dumping the dollar and replacing the dollar as the world reserve currency. The NWO succeeds in bringing in a socialist/police state society, where the masses can no longer own anything and are given a basic income. Revolution.
    More obscure I'd say China taking out our satellites and taking down the internet.
    The elite will stay in power in any scenario, but what kind of world will they and their children be living in? We are living in a modern day Rome.
    DON'T TAKE THE VACCINE!

    THE SHIT HAS HIT THE FAN!

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    Re: fixed rate mortgage

    "We are living in a modern day Rome"
    Tracing my ancestry to Denmark I claim one of my ancestors as Herman the German ... Seems the family business involves taking down Romanish umpires.

    https://en.wikipedia.org/wiki/Herman_the_German

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    Iridium
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    Re: fixed rate mortgage

    Consider the 10 year t-bill rate, 1.53% as I type. Real inflation is at "their" number of 5.30%. We all know it's higher. So, you have a negative "real" rate of the 10 year, to almost 4% loss factoring inflation. That is their numbers not real numbers. It's much much worse.

    What does this mean? KaBoom! Buy Gold, Silver, Bitcoin, food and water, and stay out of debt. Like others, fixed interest rates might be going goodbye here soon.
    life is good.

  13. #10
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    Re: fixed rate mortgage

    Goes way back in memory to the 70s & 80s. Interest rates 12%. Inflation 16%. Farming was a break even proposition. You did it because it was healthy and the family business. But banks had to have a reason to loan you money so every break even year they would add a hundred or more to the value of your land and urge you to borrow the money for a vacation on the coast because the illusion demanded you be prosperous.

    They do the same now with the value of your home.

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