Home prices have peaked (Boston, Worcester: to rent, condo, buyers)

[BostonMike7]

Originally Posted by chicagoliz

I've always thought that this would make sense for some people. You can always pay more and treat your longer term mortgage like a shorter term mortgage by paying more money each month. But the minimum required payment on the longer term is lower. So especially for people who may have wild swings in income, or are prone (for whatever reason) to stretches of under/unemployment, having that lower minimum required payment may make sense.

I've always done this with car loans.


If I go buy a car, and they offer me the same (or virtually the same) interest rate on a 5 vs 6 or 7 year note.....I go with the longer term.

I always pay extra anyway, so i'm usually done in 3-4 years anyway, but with the lower required payment, I have some room if SHTF for me.

[Parsec]

Originally Posted by BostonMike7

I've always done this with car loans.


If I go buy a car, and they offer me the same (or virtually the same) interest rate on a 5 vs 6 or 7 year note.....I go with the longer term.

I always pay extra anyway, so i'm usually done in 3-4 years anyway, but with the lower required payment, I have some room if SHTF for me.

I'm done with car loans. After my last car loan was paid off 3 years ago I've been putting away the monthly payment into a car fund to buy my our next car with cash. Saved about $30k so far! Even if your G37x loan was only $500/mo you'd have $36k plus interest saved up after 6 years since you seem to keep your cars for a while.

EDIT: In today's low interest environment it doesn't really make much of a difference, but when interest rates eventually rise and 7.9% is considered a "deal" on a new car loan you'll be glad you can afford to buy a car with cash.

[Dm84]

Originally Posted by Parsec

I'm done with car loans. After my last car loan was paid off 3 years ago I've been putting away the monthly payment into a car fund to buy my our next car with cash. Saved about $30k so far! Even if your G37x loan was only $500/mo you'd have $36k plus interest saved up after 6 years since you seem to keep your cars for a while.

If you can get 0% or 1.9% financing what's the point of buying it outright? You can get better returns on that money through investing.

[Parsec]

Originally Posted by Dm84

If you can get 0% or 1.9% financing what's the point of buying it outright? You can get better returns on that money through investing.

Yes, edited my post. My next car will be purchased when 1.9% financing is no longer around. It will take around 6 years of saving the monthly payment to buy a new car.

[BostonMike7]

Originally Posted by Parsec

EDIT: In today's low interest environment it doesn't really make much of a difference, but when interest rates eventually rise and 7.9% is considered a "deal" on a new car loan you'll be glad you can afford to buy a car with cash.

When interest rates hit that level, i'll reconsider my strategy, but my last interest rate was 1.9% or something like that.


I haven't had a car payment in 2-3 years, but I do put money aside into a "new car fund"...although not quite enough to buy a new(er) car outright. I'm approaching 200K miles on my car, so who knows at what point i'll decide to go shopping. I think I need an SUV/truck though. Going to home depot with a sedan that doesn't have rear-folding seats is a PITA

[Dm84]

Originally Posted by BostonMike7

When interest rates hit that level, i'll reconsider my strategy, but my last interest rate was 1.9% or something like that.


I haven't had a car payment in 2-3 years, but really need a truck/SUV now for my myriad of home improvement projects. Going to home depot/lowes in a sedan that doesn't have rear-folding seats is turning into a huge PITA.

Home Depot offers van/truck rentals at very reasonable rates.

[Ninotchka P]

Could this thread get any more off track?

(Not actually annoyed, just saying)

[Dm84]

Originally Posted by Ninotchka P

Could this thread get any more off track?

Yes.

[Parsec]

Originally Posted by Dm84

Yes.

Apparently it can, since my post got taken down for copyright (whoops). I was telling BostonMike: How about a truck with the creature comforts of an SUV? The 2017 Honda Ridgeline's interior is just as nice as a comparable SUV (e.g. Pilot), but it has rear seats that can fit luggage underneath when you have the kids on a roadtrip or a mountain bike if you fold them up. There's also a trunk for groceries or whatever you buy. It comes out this spring and is great for the truck buyer who doesn't tow a 30 foot bayliner or go rock crawling (which is 75% of truck buyers).

[Shrewsburried]

Originally Posted by Dm84

If you can get 0% or 1.9% financing what's the point of buying it outright? You can get better returns on that money through investing.

I shunned people who took out 5 year loans ... until a Subaru dealer offered 5yr/0%. Why tie up the cash when I can invest or throw money at my mortgage principle?

To make this post relevant: I would not be surprised to see 40-50 year home loans in the near future as well as a migration of older millenials out of the cities. I'm 31 and see many of my friends/peers abandoning their urban living in the pursuit of better schools, cheaper RE, and the privacy of a SFH. Urban burnout.