Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

Post by bombcar » Thu, Apr 28, 2022, 6:01 PM UTC

webinvest wrote: post #270

xwdv wrote: post #178

Earlier quoted context omitted.

You don’t actually have to invest at all. Over time inflation makes your payments cheaper and cheaper. By the time you reach the end of your 30 year fixed mortgaged in the year 2052 you’re still paying in 2022 dollars which is probably less than half of what the average mortgage in 2052 is. If you invest on top of that and get some small decent return you come out even more on top.

If you aren’t going to invest your principal in something that will earn a higher interest rate than the loan interest rate on your house, then taking a loan and giving away more money to your bank is not logical or smart. A $300,000 home with a 20% down payment and 80% borrowed at 5.0%* will cost you __$523,813.88__ over the 30 year life of the loan. Logically, cash just sitting in the bank 1% or less in interest sh…

Post by bombcar » Thu, Apr 28, 2022, 6:03 PM UTC

JetAlone wrote: post #283

ilikehurdles wrote: post #216

Earlier quoted context omitted.

Is 8% referring to Rocket Mortgage layoffs? Over the last two or so years, mortgage rates hit historic lows, which meant the demand for cheap mortgages increased significantly, both from people wanting to enter the market and those refinancing. Consider that the $500k mortgage that would have cost $2300/mo in 2019 suddenly costs like $1600/mo in 2021. Absolutely I jumped on that train, as many others did. Lenders wer…

It wasn't the right time to buy for me, for a handful of reasons, got no resentfulness over it. I don't know what my local market is like, or is going to be like.

Post by bombcar » Thu, Apr 28, 2022, 6:06 PM UTC

snarf21 wrote: post #262

JetAlone wrote: post #90

Buying a home mortgage is signing yourself over to a lifetime of servitude and uncertainty if you lose your income stream. Buy a property out of pocket to live in and make the most of a DIY life at a fraction of the cost and an odd stress differential, or just keep renting and be agile enough to roll with the punches.

I disagree completely. You are trading risks and the government protects you in buying. The big problem is that people want to buy a 5 BR / 4 Bath that is the max they can afford so they do get stuck in that cycle. I didn't grow up poor by any means but today's kids need a 12x12 BR and sometimes on suite. We had 2 bunk beds and four teenage boys in a 10x10. People would be better served by buying the cheapest and sma…

Post by ClumsyPilot » Thu, Apr 28, 2022, 6:09 PM UTC

bombcar wrote: post #210

lmt55 wrote: post #125

Earlier quoted context omitted.

If in 10 years you want a year off is your landlord going to give you one?

I think he’s saying that in ten years he can stop renting and shove everything into a storage unit and go travel. The rent/but dichotomy really comes down to what axis of “freedom” you want to optimize for, and if you want to stay in the house and area more than 10 years.

Post by MGriisser » Thu, Apr 28, 2022, 6:13 PM UTC

llampx wrote: post #141

agent008t wrote: post #136

Earlier quoted context omitted.

>buying an asset class that has a history of appreciating in value Correction - over a time period of decreasing interest rates. Housing, on its own, is a depreciating asset. It is a consumable like a TV. It deteriorates with time. "Housing always goes up", without an understanding of why it has been going up, can be a dangerous belief and could be one of the reasons why housing at the moment is so expensive relative…

Exactly. I believe interest rates bottomed sometime in 2020-2021. Those rates are not going to be seen for another few decades. It remains to be seen what this will do to house prices. What happened to most speculative tech stocks since 2021 can also happen to other asset classes.