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Best spot to do a mortgage these days?

Any tips?

¯\_(ツ)_/¯ It be like that sometimes.

Aren’t mortgages for the peanut gallery and other beta-like specimen? 

If you're the first out the door, that's not called panicking

Codtrawler87 wrote:

Aren’t mortgages for the peanut gallery and other beta-like specimen? 

Gonna have to revoke your CFA for that comment. With interest at 2% you realize how dumb it is to actually pay cash for anything right? 

¯\_(ツ)_/¯ It be like that sometimes.

CEO10K-DAY wrote:

Codtrawler87 wrote:

Aren’t mortgages for the peanut gallery and other beta-like specimen? 

Gonna have to revoke your CFA for that comment. With interest at 2% you realize how dumb it is to actually pay cash for anything right? 

Only if you’re very sure that you can earn 2%+ on that excess cash. Looking at the current valuations, I wouldn’t bet the farm on it. 

If you're the first out the door, that's not called panicking

You need to get several quotes and shop around bro. Anecdotally, WF tends to be more competitive than other large banks for regular size loans, and their high market share probably comes from that (they have 2x as much issuance as JPM, BofA, etc.). However, I’ve also seen some people get like 0.20% discount from some small firms, compared to competitors’ quotes, in return for putting some assets in their wealth account or other stuff like that. Coworker seduction and 100k salary is going well I take it?

“Visit the Water Cooler forum on Analyst Forum. It is the best forum.”
- Everyone

I love my cheese. I got to have my cheddar.

Codtrawler87 wrote:

CEO10K-DAY wrote:

Codtrawler87 wrote:

Aren’t mortgages for the peanut gallery and other beta-like specimen? 

Gonna have to revoke your CFA for that comment. With interest at 2% you realize how dumb it is to actually pay cash for anything right? 

Only if you’re very sure that you can earn 2%+ on that excess cash. Looking at the current valuations, I wouldn’t bet the farm on it. 

Bro bro bro bro bro…. Consider a house priced at $550,000.00. Now let’s consider I also have that much wompum just sitting my in my checking account. At 3% my monthly payment would come to $2,318.82 for a 30 yr loan. Which means, I would only have to generate 5.06% a year if I had $550K  I could invest to get a totally free house. 

Now, to tell you the absolute truth, I could go find a high-yield or muni manager right now and just tell them to clip the coupons for the next 30 years, totally disregard my duration risk, and get a free house. 

That way, at the end of the 30 years, I keep my $550K, AND the house. Did I mention yet that you get the house for free basically doing this?

Now consider you don’t need to live in the house, and can rent it out in a super boojey neighborhood in Denver for more than the mortgage payment. Ya knahm’sayin’?

ohai wrote:

You need to get several quotes and shop around bro. Anecdotally, WF tends to be more competitive than other large banks for regular size loans, and their high market share probably comes from that (they have 2x as much issuance as JPM, BofA, etc.). However, I’ve also seen some people get like 0.20% discount from some small firms, compared to competitors’ quotes, in return for putting some assets in their wealth account or other stuff like that. Coworker seduction and 100k salary is going well I take it?

Thank you. I’m actually going to contact WF about this now. And well, I wouldn’t say I’m getting ahead of myself. But, just planning for when I get my super cushy new HF job.

¯\_(ツ)_/¯ It be like that sometimes.

May need to brush up on those analysis skills in anticipation of the new job. Do you not pay taxes?

Also not sure how it’s free. Sounds like some mental accounting or something 

You will need better analysis skills that this for your hedge fund interview! If you use the investment proceeds from your $550k to pay house costs, that is not free. You are consuming the possible alternative uses of those proceeds. After 30 years, you could have, for example, a $550k house or $550k in capital gains of other assets. 

Now, if you invested that money, could you generate more than the after tax mortgage interest over a long period of time? Very likely yes. The interest cost relative to expected return could justify a mortgage, but it’s not “free” by any means!

“Visit the Water Cooler forum on Analyst Forum. It is the best forum.”
- Everyone