Comments on: FOMC Cuts Discount Rate by 0.75% http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 05:05:28 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Mortgage Rates | Rain City Guide http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330440 Mortgage Rates | Rain City Guide Fri, 19 Dec 2008 18:21:49 +0000 http://raincityguide.com/?p=3668#comment-330440 [...] have record low rates.  Congrats!  I do think rates will continue to bounce around quite a bit with the Fed’s move to purchase mortgage backed securities and agency debt…the question is to homeowners, what rate will it take for you to refinance and/or is there a [...] [...] have record low rates.  Congrats!  I do think rates will continue to bounce around quite a bit with the Fed’s move to purchase mortgage backed securities and agency debt…the question is to homeowners, what rate will it take for you to refinance and/or is there a [...]

]]> By: tj http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330437 tj Fri, 19 Dec 2008 17:42:02 +0000 http://raincityguide.com/?p=3668#comment-330437 Thanks Rhonda, that's how I understood it. It's just that a downpayment is hard to use in a comparison to rent. It probably makes the purchase in a declining/deflationionary environment even more to a disadvantage so I just choosed to compare with the $400k loan amount. Thanks Rhonda, that’s how I understood it. It’s just that a downpayment is hard to use in a comparison to rent. It probably makes the purchase in a declining/deflationionary environment even more to a disadvantage so I just choosed to compare with the $400k loan amount.

]]> By: Rhonda Porter http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330436 Rhonda Porter Fri, 19 Dec 2008 14:30:54 +0000 http://raincityguide.com/?p=3668#comment-330436 tj, just to be clear, my example is based on a $400k loan amount--not sales price--with 20% down ($500k sales price min.). I try to stick to this loan amount/sales price since it's what I use for the Friday rate updates. tj, just to be clear, my example is based on a $400k loan amount–not sales price–with 20% down ($500k sales price min.). I try to stick to this loan amount/sales price since it’s what I use for the Friday rate updates.

]]> By: tj http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330433 tj Fri, 19 Dec 2008 07:53:02 +0000 http://raincityguide.com/?p=3668#comment-330433 The $400k kind of sidetracked the intention with my remark. Rhonda used $400k for her purchase example and that's why I used it. We could use $700k instead or whatever price range is common and the result would be the same. Renting is far cheaper than a purchase at 4.5% interest rate and therefore a tough competitor until prices moves much lower. Low interest rates are not enough in this area at this time to make it palatable for a renter. Remember that many owners have the option to rent their homes cheap since they bought cheap many years ago. Not all homes on the eastside are newer than 2000. I think we got a pretty good deal since the onwers are not renting out for profit but for keeping their home while they are expatriats outside the US. On the other hand our friends rented a 3000+ sqft lakeview home in Houghton for $2000/month for three years before they bought another home in 2007. The rental home was bought a long time ago and paid off by the owner. There are deals to be had in renting with some luck. The $400k kind of sidetracked the intention with my remark. Rhonda used $400k for her purchase example and that’s why I used it. We could use $700k instead or whatever price range is common and the result would be the same. Renting is far cheaper than a purchase at 4.5% interest rate and therefore a tough competitor until prices moves much lower. Low interest rates are not enough in this area at this time to make it palatable for a renter. Remember that many owners have the option to rent their homes cheap since they bought cheap many years ago. Not all homes on the eastside are newer than 2000. I think we got a pretty good deal since the onwers are not renting out for profit but for keeping their home while they are expatriats outside the US. On the other hand our friends rented a 3000+ sqft lakeview home in Houghton for $2000/month for three years before they bought another home in 2007. The rental home was bought a long time ago and paid off by the owner. There are deals to be had in renting with some luck.

]]> By: ARDELL http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330432 ARDELL Fri, 19 Dec 2008 07:02:44 +0000 http://raincityguide.com/?p=3668#comment-330432 In answer to tj, I was saying neither were commonplace on the Eastside. $400,000 homes or homes renting at $1,200. A 2,750 sf home like tj's is more likely to rent for $2,500 on Education Hill (newer home). An older split entry in North Aurora would rent for $1,800 or so. I don't see many houses that rent in either place for $1,200. A 2 bedroom townhouse in Redmond at 1,100 sf rents for $1,450. Larger homes start getting diminishing returns, because no one wants to spend too much on rent, no matter how big and fancy the house is. Well, maybe not "no one", but very few people. In answer to tj, I was saying neither were commonplace on the Eastside. $400,000 homes or homes renting at $1,200. A 2,750 sf home like tj’s is more likely to rent for $2,500 on Education Hill (newer home). An older split entry in North Aurora would rent for $1,800 or so. I don’t see many houses that rent in either place for $1,200. A 2 bedroom townhouse in Redmond at 1,100 sf rents for $1,450.

Larger homes start getting diminishing returns, because no one wants to spend too much on rent, no matter how big and fancy the house is. Well, maybe not “no one”, but very few people.

]]> By: Cautious Buyer http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330427 Cautious Buyer Fri, 19 Dec 2008 05:51:27 +0000 http://raincityguide.com/?p=3668#comment-330427 Sorry, Ardell, but those are the only category of homes I could think of in the areas you mentioned that are in the 400K price range. You do cross from a low to a higher crime area between greenlake and a few blocks north. Looking at #26 it seems like you were saying that 1200/mo rent for a 400K place is too low, and 2500 is more common, but maybe I misunderstood what you were trying to say. Sorry, Ardell, but those are the only category of homes I could think of in the areas you mentioned that are in the 400K price range. You do cross from a low to a higher crime area between greenlake and a few blocks north.

Looking at #26 it seems like you were saying that 1200/mo rent for a 400K place is too low, and 2500 is more common, but maybe I misunderstood what you were trying to say.

]]> By: ARDELL http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330424 ARDELL Fri, 19 Dec 2008 04:42:32 +0000 http://raincityguide.com/?p=3668#comment-330424 tj, I think that price for that square footage is an excellent deal. I don't know more about house rentals than the average Joe, as I rarely handle rentals. But experts have recently told me that they rent anywhere from $.85 to $2.00 a square foot, depending on location, age, etc. People I know who rent pay just over $1.00 a square foot or more, so it appears to me that you have a super deal. tj,

I think that price for that square footage is an excellent deal. I don’t know more about house rentals than the average Joe, as I rarely handle rentals. But experts have recently told me that they rent anywhere from $.85 to $2.00 a square foot, depending on location, age, etc. People I know who rent pay just over $1.00 a square foot or more, so it appears to me that you have a super deal.

]]> By: ARDELL http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330423 ARDELL Fri, 19 Dec 2008 04:33:47 +0000 http://raincityguide.com/?p=3668#comment-330423 Cautious Buyer, As you may know, I am a big fan of "North Aurora" and three blocks from The Lake at Green Lake, is Green Lake as far as I'm concerned. Yes, I am clearly "one of those agents". I lived in Licton Springs just North of Green Lake when I first moved to Seattle, and my sister has lived there for about 10 years and loves it. She has great neighbors, the kind that call me if they haven't seen her for a few days because they are worried about her. I am a huge fan of the area of which you speak. I don't think anyone should pay $2,500 a month for something that would sell for $400,000. That's not what I said. I said a house (not townhouse) that would sell for $400,000 is not the norm nor is a house rental at $1,200 the norm. Going back to comments 26. and 27. I don't think we were talking about townhomes at all. Cautious Buyer,

As you may know, I am a big fan of “North Aurora” and three blocks from The Lake at Green Lake, is Green Lake as far as I’m concerned. Yes, I am clearly “one of those agents”.

I lived in Licton Springs just North of Green Lake when I first moved to Seattle, and my sister has lived there for about 10 years and loves it. She has great neighbors, the kind that call me if they haven’t seen her for a few days because they are worried about her.

I am a huge fan of the area of which you speak.

I don’t think anyone should pay $2,500 a month for something that would sell for $400,000. That’s not what I said. I said a house (not townhouse) that would sell for $400,000 is not the norm nor is a house rental at $1,200 the norm.

Going back to comments 26. and 27. I don’t think we were talking about townhomes at all.

]]> By: Cautious Buyer http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330420 Cautious Buyer Fri, 19 Dec 2008 02:38:51 +0000 http://raincityguide.com/?p=3668#comment-330420 Are you really seeing people pay 2500/mo for a 400K place? For a 800K place I can believe it, but for those cruddy new townhomes in the North Aurora area listing agents call "Greenlake neighborhood", are people really paying that much? Are you really seeing people pay 2500/mo for a 400K place? For a 800K place I can believe it, but for those cruddy new townhomes in the North Aurora area listing agents call “Greenlake neighborhood”, are people really paying that much?

]]> By: tj http://raincityguide.com/2008/12/16/fomc-cuts-discount-rate-by-075/#comment-330419 tj Fri, 19 Dec 2008 02:17:42 +0000 http://raincityguide.com/?p=3668#comment-330419 Dunno much about renting basement homes and ramblers. Ours is a two story 4 bdrm and the other two we rented before were also two story. All with attached garages. At every swap we found a handful suiteable homes in one month in the area we live in. It was suprisingly easy each time. Could be that we were lucky but it seems a bit to much luck :) Dunno much about renting basement homes and ramblers. Ours is a two story 4 bdrm and the other two we rented before were also two story. All with attached garages. At every swap we found a handful suiteable homes in one month in the area we live in. It was suprisingly easy each time. Could be that we were lucky but it seems a bit to much luck :)

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