OT - interest rates

[DaddyChoc]

what was the highest you ever had? I think I was up to about 6.5% in the mid 80's (teenager).

these days we're lucky to get 1%

do you bank via "brick & mortar", online banking or sweatsock under the mattress?

Im into online banking these day, I was a late bloomer (I wanted my check in hand, took it to the bank, cashed it, took the cash to the post office... wrote out money orders, licked stamps and mailed them off atleast 7 days before due date)

#DirectDeposit these day, online bill pay but not scheduled.

 

[rvwsleep]

I believe it was in 1982. You could get 20 yr NYC municipals that yielded over 14%.

 

[Sonny44]

I believe it was in 1982. You could get 20 yr NYC municipals that yielded over 14%.

We had some CD's at 16%. I hope we never see that again.

 

[Mattydog7]

what was the highest you ever had? I think I was up to about 6.5% in the mid 80's (teenager).

these days we're lucky to get 1%

do you bank via "brick & mortar", online banking or sweatsock under the mattress?

Im into online banking these day, I was a late bloomer (I wanted my check in hand, took it to the bank, cashed it, took the cash to the post office... wrote out money orders, licked stamps and mailed them off atleast 7 days before due date)

#DirectDeposit these day, online bill pay but not scheduled.

Banks- Safest place to lose money.

 

[j66kicker]

Bought my first house in 1979 or 1980 during Jimmy Carter inflation. FHA mortgage was 10.8% and that was actually a good deal. Also earned 11% on zero coupon 15-year California education bonds we bought a couple years later.

 

[UcMiami]

It is crazy the current interest rates - you can get a higher dividend from blue chip stocks than you can in any bank or CD.

 

[Icebear]

Essentially, this indicates the current rates are uninteresting rates.

 

[KnightBridgeAZ]

For years, savings interest was 5%. It was what you expected. Also had Christmas Clubs, which payed about that, as well.

Buying a house in '88 I don't really remember what the exact interest rate was, but for most of our mortgage period (we refinanced twice) it was in the 5% range (just under when my wife was still with the bank) and that was considered excellent at the time we had it.

As to banking, at a brick and mortar national bank, I use multiple methods. We have direct deposit and also deposit checks; I use an ATM and monitor on line. I pay my credit card bills (on the credit card site) by internet, do not have any authorized recurring charges to my checking and write physical checks when paying bills.

Most of my assets are invested and managed by a Trust Company associated with an organization to which I belong.

 

[cockhrnleghrn]

I work in banking (lending to be exact) and these low rates are boring.

 

[DaddyChoc]

For years, savings interest was 5%. It was what you expected. Also had Christmas Clubs, which payed about that, as well.

Buying a house in '88 I don't really remember what the exact interest rate was, but for most of our mortgage period (we refinanced twice) it was in the 5% range (just under when my wife was still with the bank) and that was considered excellent at the time we had it.

As to banking, at a brick and mortar national bank, I use multiple methods. We have direct deposit and also deposit checks; I use an ATM and monitor on line. I pay my credit card bills (on the credit card site) by internet, do not have any authorized recurring charges to my checking and write physical checks when paying bills.

Most of my assets are invested and managed by a Trust Company associated with an organization to which I belong.

ordering a box of checks can last almost a lifetime these days... I pay my mortgage and one car payment by check. I could pay them online (I think) but they charge a $5.00 or so fee.

how about maintenance fees on you're online stuff... annual fees?

 

[DaddyChoc]

Bought my first house in 1979 or 1980 during Jimmy Carter inflation. FHA mortgage was 10.8% and that was actually a good deal. Also earned 11% on zero coupon 15-year California education bonds we bought a couple years later.

never heard of it so I looked it up right here

thanks for educating me

 

[DaddyChoc]

For years, savings interest was 5%. It was what you expected. Also had Christmas Clubs, which payed about that, as well.

Buying a house in '88 I don't really remember what the exact interest rate was, but for most of our mortgage period (we refinanced twice) it was in the 5% range (just under when my wife was still with the bank) and that was considered excellent at the time we had it.

As to banking, at a brick and mortar national bank, I use multiple methods. We have direct deposit and also deposit checks; I use an ATM and monitor on line. I pay my credit card bills (on the credit card site) by internet, do not have any authorized recurring charges to my checking and write physical checks when paying bills.

Most of my assets are invested and managed by a Trust Company associated with an organization to which I belong.

is refinancing good say from 6.5 to 4.5%... is it worth it?

 

[KnightBridgeAZ]

ordering a box of checks can last almost a lifetime these days... I pay my mortgage and one car payment by check. I could pay them online (I think) but they charge a $5.00 or so fee.

how about maintenance fees on you're online stuff... annual fees?

For the regular stuff I don't pay any fees that I know of - the checking fee is waived due to the direct deposits. The credit cards charge whatever they charge, of course, although we recently trimmed down our quantity. I do not use non-"my bank" atm's. I'll add that I don't particularly think much of my bank, but I've always been with them or their antecedents, don't need much TLC, and don't have any other products with them.

On the trust side, if I have my digits in the right place, it is around 1 tenth of one percent of the balance per month.

 

[KnightBridgeAZ]

is refinancing good say from 6.5 to 4.5%... is it worth it?

I would think so, but don't ask me to prove it.

When we first financed in '88 my wife tells me the rate was just over 9% and supposed to go up to 11% shortly thereafter. However, this was the time of the S&L bubble bursting, and also my wife embarked on a new career with the local (since merged into a national) bank, which enabled us to re-fi to a significantly lower rate, with a 1% extra decrease due to her employment, so it went up when she left the bank after around 10 years. Don't remember the actual rate, maybe 6-7%?

However, we had an opportunity to refinance in the equity market (which only means that there were none of the various fees associated with a mortgage, including no points - it was still the primary mortgage) with the same lender, which is when our rate was 5.75% and I think maybe 15 year. For the time through the end of 2010, we sold in 2011, the rates were never attractive enough to make another re-financing necessary.

Hope this information helps you with making your decision.

 

[Wbbfan1]

My bank has free payments if I pay online. I can get deposit slips for free, yet have to pay for Checks. Can't remember the last time I wrote a check. I pay everything online as a scheduled payment or use my debit card for all other purchases. Fortunately no fees for either.

 

[j66kicker]

is refinancing good say from 6.5 to 4.5%... is it worth it?

Depends on 1) the rate difference (interest savings), 2) closing costs and 3) how long you're going to stay in the house. The payback on the closing costs has to be before you sell (and pay off the loan). Must tax-adjust for the interest savings you will no longer write off.

 

[DaddyChoc]

Oh... That sounds like a lot of work!

 

[DaddyChoc]

My bank has free payments if I pay online. I can get deposit slips for free, yet have to pay for Checks. Can't remember the last time I wrote a check. I pay everything online as a scheduled payment or use my debit card for all other purchases. Fortunately no fees for either.

Do you do auto pay... Or you log in every month and schedule?

 

[j66kicker]

Oh... That sounds like a lot of work!

It's not.

How much interest would you save per month? What is your marginal income tax rate? Adjust the monthly savings downward for the additional tax you'll pay.

What are your closing costs?

How many months interest savings is that? Will you be in the house that long?

 

[DaddyChoc]

Isn't closing cost just as much as the difference in monthly payments... Guess that's why length of living there matters eh?

 

[j66kicker]

Isn't closing cost just as much as the difference in monthly payments... Guess that's why length of living there matters eh?

Yup

 

[Vowelguy]

is refinancing good say from 6.5 to 4.5%... is it worth it?

There are online calculators that tell you whether or not to refi.

 

[j66kicker]

There are online calculators that tell you whether or not to refi.

http://www.zillow.com/mortgage-calculator/refinance-calculator/

 

[DaddyChoc]

There are online calculators that tell you whether or not to refi.

I think the posters on the Boneyard are smarter than a stinky calculator

 

[vtcwbuff]

I don't think that I have been in a bank in a dozen years. I bank/bill pay on line. I probably write no more than 4-5 checks a year. Bank interest rates are so crappy we only keep "emergency" savings in a bank account.

I remember the good old days where market tracking mutual funds might return 20% or more.
I think the stock market is still the place to get the best returns if you can handle the risk.