Penfed denies house loan to retiring officer
#31
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Joined APC: Apr 2013
Position: Retired AF/A320 FO
Posts: 326
Here's my quick analysis--Since I am fairly certain this is not my long term retirement home and will stay at least 3 and maybe 10-12 years here's my math.
Over 5 yrs I will save as much as 25k in payments over fixed rate which basically covers about half my utility bill. Or covers my 3 teenage sons' car insurance.
After the loan starts resetting in 6 years, the max I will pay in mortgage at the 10 year point is an additional 800 dollars a months. I can afford that mortgage on my current salary so I am willing to take the risk that rates won't go to that extreme for an extended period but again I can afford it now and my salary should increase over 10 years (again worst case if I kept the home and this loan).
I've bought and sold a handful of houses in my military career and stopped doing fixed after the first one. After all the origin of the word mortgage is "death pledge." I plan to have sold it or have it paid off well before I die.
A quote I found years ago--"In the United States a man builds a house to spend his latter years in it, and he sells it before the roof is on" Frenchman De Tocqueville observed this in our culture in 1831...not much has changed.
Over 5 yrs I will save as much as 25k in payments over fixed rate which basically covers about half my utility bill. Or covers my 3 teenage sons' car insurance.
After the loan starts resetting in 6 years, the max I will pay in mortgage at the 10 year point is an additional 800 dollars a months. I can afford that mortgage on my current salary so I am willing to take the risk that rates won't go to that extreme for an extended period but again I can afford it now and my salary should increase over 10 years (again worst case if I kept the home and this loan).
I've bought and sold a handful of houses in my military career and stopped doing fixed after the first one. After all the origin of the word mortgage is "death pledge." I plan to have sold it or have it paid off well before I die.
A quote I found years ago--"In the United States a man builds a house to spend his latter years in it, and he sells it before the roof is on" Frenchman De Tocqueville observed this in our culture in 1831...not much has changed.
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