Talking stocks, trading, and investing in general

[msg]

Yeah. Seems like both MM and savings accounts are topping out at 1%. I know people will stack (may be mid remembering the term) CDs but for my time horizon seems like extra hassle.

 

[RedLantern]

If you’re able to put away 100k per year for a down payment, why don’t you just buy now and pay PMI for a coupe years?

 

[msg]

If you’re able to put away 100k per year for a down payment, why don’t you just buy now and pay PMI for a coupe years?

I dislike debt. I am targeting a down payment 25% - 30% of my expected purchase price. I am assuming I can save faster than home prices rise. That may be optimistic. I can’t predict mortgage rates.

 

[Piobaire]

RL has a point. Interest rates are really low right now, and if you dislike debt, not much difference between disliking a 90% vs. 75% LTV.

 

[venividivicibj]

Nvm question answered above

 

[msg]

RL has a point. Interest rates are really low right now, and if you dislike debt, not much difference between disliking a 90% vs. 75% LTV.

Yes, 75% LTV is the low end. But if I can push the down payment to >30% then I feel less risk. Maybe 40 - 50% down. Maybe that’s optimistic. I’m assuming a home between 1.5M - 2M. I don’t have a good sense on how to model future dollars vs current cash. But the more I push the monthly payment down, the less risk exposure. I think? I realize mortgage rates are absurdly low. Haven’t seen rates like this since Nero was in charge.

Would love to have a different way to evaluate this.

 

[brokencycle]

Yes, 75% LTV is the low end. But if I can push the down payment to >30% then I feel less risk. Maybe 40 - 50% down. Maybe that’s optimistic. I’m assuming a home between 1.5M - 2M. I don’t have a good sense on how to model future dollars vs current cash. But the more I push the monthly payment down, the less risk exposure. I think? I realize mortgage rates are absurdly low. Haven’t seen rates like this since Nero was in charge.

Would love to have a different way to evaluate this.

And what happens if these low interest rates keep pushing house prices up?

 

[lawyerdad]

Yes, 75% LTV is the low end. But if I can push the down payment to >30% then I feel less risk. Maybe 40 - 50% down. Maybe that’s optimistic. I’m assuming a home between 1.5M - 2M. I don’t have a good sense on how to model future dollars vs current cash. But the more I push the monthly payment down, the less risk exposure. I think? I realize mortgage rates are absurdly low. Haven’t seen rates like this since Nero was in charge.

Would love to have a different way to evaluate this.

Also, while I don’t know msg’s situation, waiting and saving mitigates the risk of some unexpected event in the reasonably near term disrupting income/cash flow expectations. I mean, I know COVID is just going to disappear any day now, but until that happens it’s definitely making some industries a bit less predictable. Having your savings goal be a stretch is generally less stressful than having your housing payment be a stretch.
I’m drunk, so factor that in if relying on my analysis for major life decisions.

 

[RedLantern]

Yes, 75% LTV is the low end. But if I can push the down payment to >30% then I feel less risk. Maybe 40 - 50% down. Maybe that’s optimistic. I’m assuming a home between 1.5M - 2M. I don’t have a good sense on how to model future dollars vs current cash. But the more I push the monthly payment down, the less risk exposure. I think? I realize mortgage rates are absurdly low. Haven’t seen rates like this since Nero was in charge.

Would love to have a different way to evaluate this.

It would be less risky to buy sooner, and keep a larger cash reserve than save longer and have a marginally smaller payment

 

[Piobaire]

Raising cash for a home down payment. Time horizon is ~2 - 3 years. I have a ~$100k in cash and I expect to add another $100k per year. I’m risk averse because this is down payment money. Is there any better interest option than a 1.00% money market account? The time horizon is short. But curious if there’s something I should consider.

Yes, 75% LTV is the low end. But if I can push the down payment to >30% then I feel less risk. Maybe 40 - 50% down. Maybe that’s optimistic. I’m assuming a home between 1.5M - 2M. I don’t have a good sense on how to model future dollars vs current cash. But the more I push the monthly payment down, the less risk exposure. I think? I realize mortgage rates are absurdly low. Haven’t seen rates like this since Nero was in charge.

Would love to have a different way to evaluate this.

So you have 100k, and in two years could have a total of 300k. Take your lower number of $1.5 and you've 80% LTV. Or go three years out, you'll have 400k and take your top number of $2 mil for an LTV of 80%. Do now with your low number and you're about 94% LTV. Delta of 14% LTV.

You currently pay rent, yes? There's your PMI and more. Want to avoid risk? You avoid property values outpacing your savings and you avoid not locking in these interest rates. How much risk is a delta of 14% LTV going to alleviate?

 

[beargonefishing]

Is Warren the biggest monopolist in the world? Verisign has a 65% profit margin.

 

[Piobaire]

Buy the dip?

Kodak stock dives 30% after $765 million loan is put on hold

Kodak stock plunged 30% Monday after a $765 million loan from the US government to help make drug ingredients was put on hold, as regulators are reportedly looking into allegations of insider trading.

www.cnn.com

 

[Omega Male]

Very legal and very cool.

 

[UnFacconable]

Having a weird day. A friend of mine is pulling his hair out over leaving his former employer behind less than a year before they announced an exit at a value that would have earned him eight figures. Another friend is at a company rumored to go public by SPAC that will net him eight figures less than 18 months after he joined. I guess I'm right in between, having neither lost nor gained 8 figures.

 

[Piobaire]

I've spent 8 figures. Of course, the bank seems to want it back, but that's another story.