Anybody worried/freaked out by the stock market?
4 years ago
Featured Answer
Sort by:Oldest
Comments (60)
- 4 years agolast modified: 4 years ago
- 4 years ago
Related Discussions
Is Anybody Following The Markets?
Comments (34)Well, I'd started this thread hoping to discuss the AIG failure & its far reaching tenacles into America but it's been all about housing. I've got one arm tied behind my back in that area but I can discuss 50-year mortgages. Fifty year mortgages are typically 5/1 ARMs at a quarter percentage point higher than a 30-year loan. Over the first five years of the loan, the borrower pays about 0.25% more than a typical 30-year fixed rate mortgage, but after that, the rate adjusts annually to match the prime lending rate. Since we have no idea what will happen with interest rates five years down the road, the only way to really evaluate the 50-year loan is over the first five years. Lets say that were buying a $250,000 home and we have a $50,000 down payment. We can either take a 30-year loan at 6%, or a 50-year loan at 6.25%. On the 30-year mortgage, your monthly payment would be $1,199.10. With the 50 year mortgage, your monthly payment (for the first five years, as mentioned above) would be $1,089.95. So far, so good for the 50-year mortgage but if we keep comparing it's not so great going forward. Lets say that in 5 years youre ready to sell the house and move on. Also assuming that your house value went up 10%, so now its worth $275,000. For the 30-year mortgage, you still have a balance of $185,840, which means that you now have $89,160 in equity in the house. On the other hand, with the 50-year mortgage, you still have a balance of $196,544, which means you have only $78,456 in equity in the house. With the 30-year mortgage, you have $10,704 more in equity after five years. Now, the difference in your monthly payments is $109.15, so over 6-months, youll pay $6,549 more with the 30-year loan, but you end up with $10,704 more in home equity. Thats a 63% return over five years, or about 11% a year. I dont know about you, but if I can afford an investment that returns a guaranteed 11% a year, Im quite willing to dump $110 a month into that investment. In short, a 50-year mortgage simply isnt worth it. A 30-year mortgage is actually an extremely good investment versus a 50 year, and were not even considering the bad things that can happen when your rate adjusts with the 50 year. Theres pretty much no reason to ever consider getting a 50 year mortgage unless you enjoy handing a lot of money to your mortgage company with nothing in return. I watched CNBC last night until 9:00 p.m. The future were at +215 when I got up at 2:00 a.m. to use the facilities. Now, since the announcement of the MM fund guarantee they've jumped to +338. It's going to be another interesting day. This is a very far-reaching legislation. I know there was a run yesterday on MM funds & something had to happen quickly but I sure hope they take the time to think this thing through carefully...sometimes, the cure is worse than the disease?? Blocking short sales is draconian, IMO, & really interfers in the free market. Shorts help us to spot problems (remember Enron?). Don't like this blocking short sale business at all. If somebody's spreading negative rumors & then short trading on those rumors...that's already illegal. Gosh, I've traded short several times over the past year & I'm certainly no "corporate raider". Anyway, there's LOTS to digest this morning & probably more to come... /tricia...See Moreclosed on new home and freaking out now!
Comments (29)Just having purchased an 1825 stone farmhouse in October, I found your post and can completely relate. My wife fell in love with this house and I agreed to come along for the ride but from the minute we moved in we began regretting it, feeling like we made a monumental mistake. We are feeling better these days but still have moments where we debate whether we should sink more money into this place or stick it out until spring and put it back on the market. I wish I had found your post when we first moved in because all of the advice given is sound and to some degree what we ended up doing to get through those first few nights. My advice is similar to others, take one thing at a time and focus on the most important to you. We knew our house had lead paint in it so we didn't even bother having it tested. Everything we read and were told was that if you keep things freshly painted, removing any chipping paint, keep dust levels down and you aren't doing any renovations that it shouldn't be an issue. We bought into that argument until we moved in with our 9 month old and projected all of our other worries onto this one single issue. After crying together for hours we started cleaning and focussing on what would need to be done to make us feel comfortable. We got radiator covers for all of the radiators and had contractors in to give estimates to restore and remove lead paint from all the windows in the room we planned for our son. My wife scrubbed all the baseboards in the house with trisodium phosphate and we vaccuumed extensively. We had been in the house a month and his lead results just came back completely normal, we will have him tested again but are hopeful that we can handle this issue. Now onto all of the others.....the chimney sweep walked out of our house yesterday saying he couldn't help us and didn't want the job after looking up our chimney (there is a wood stove venting into the fireplace chimney which isn't safe). Not sure how we fix that one... Definitely sharing your story and getting advice from people that have been through this is the best medicine!!! Good Luck...See MoreFreaking out about my paint selection :(
Comments (40)I really like the LR color and the flow of colors you have throughout your house. Maybe it's because my LR and DR are the similar to your LR. My lighting is similar to yours. I have eggplant, teal, and orange incorporated with my accessories such as pillows and art for which that color works perfectly. Not every neutral color works well in that type of lighting, It took a whole lot of samples some of which are highly used and mentioned on GW to get it right for our rooms including many of the grays. When my neighbors and friends come into our home, the first thing they compliment is our wall colors. They want to know what we used. You'll see when it's all said and done. You will have the same reaction. I think your color consultant did a great job for you. Have fun decorating. My only suggestion is that you keep all your furnishings neutral with fabrics that have textures and have fun bringing in all the colors with your accessories and art. You have a beautiful home....See MoreStock Market Worries
Comments (49)May I suggest that you keep things in perspective, folks? If you spent years in post-secondary education and had some interim jobs before getting on career track and really hot (I thought that I wrote "got") going at 30, and now at 60 are looking at retirement, whether voluntarily or forced ... you've had a 30 year career. Take it from this guy who was 90 last year ... you may be retired as long as you worked! Have you heard which segment of life has been the fastest growing, in our part of the world, in recent years? The folks over 100! (Granted ... the calculation started from a not-large base). The early years of retirement are expensive, what with all of that pent-up energy being released in kicking up your heels, running around and having fun ... then come the middle somewhat quieter, more relaxed (thus somewhat less expensive) years. Possibly somewhat enhanced, finance-wise, by downsizing from major house to more modest digs, thus freeing up some meaningful assets for investment. Usually there are substantial costs associated with the latter years of our lives, living in a retirement home, then assisted care, and then nursing homes ... and while one can sing while there, if one chooses - you don't get to stay there for a song! Many advisors suggest that a substantial portion of money which you don't expect to need for about ten years or more can well be invested in qualty eguities. Eating my own cooking, as I do - well over two thirds of my investments are equity-based. Most of the mutual funds, most held for a number of years, charge about 2% a year as management fees. ETF fees are substantially lower. Over half of my portfolio is in individual stocks owned directly. One that I bought over 50 years ago for $4,25 a share, paying 10 or 12 cents a year dividend, was (supposedly) "worth" $107. in 3007, paying $3.08 dividend. I don't know what "worth" is - what I mean is that that is the price for which I could have sold it at that time. The price available in 2008 dropped to $40., as that company was heavily involved in the financial fiasco operational at the time. Should have had the courage to buy more (at what precise time, pray tell?) ... but didn't. Some said they'd cut dividends: they didn't, but there was no increase for 4 years. Share prices grew to around $120. a few months ago, payng $5.76 annual dividend - recent offer is about $68. Estimate cost in a year just over $100. Over those 50+ years of ownership - haven't paid a nickel to any manager's fee. May invest some soon, some more later: no one knows where the bottom will be. In what I think to be a more valuable company for the price. Many advisors suggest to invest equal number of dollars on a regular interval, called "dollar cost averaging": one gets fewer shares when prices are high, more when prices are low. Good wishes for making wise use of your dollars in a long-term plan. Better to have dollars left at the end of the years ... than years left at the end of the dollars! Who'll then pay for the funeral/plot/headstone? ole joyful...See More- 4 years ago
- 4 years ago
- 4 years ago
- 4 years agolast modified: 4 years ago
- 4 years ago
- 4 years ago
- 4 years ago
- last year
- last year
- last year
- last year
- last year
- last year
- last year
- last year
- last year
- last year
- last year
- last yearlast modified: last year
- last yearlast modified: last year
- last year
- last yearlast modified: last year
- last yearlast modified: last year
- last year
- last yearlast modified: last year
- last year
- last yearlast modified: last year
- last year
- last year
- last yearlast modified: last year
- last yearlast modified: last year
- last yearlast modified: last year
- last year
- last year
- last yearlast modified: last year
- last yearlast modified: last year
- last yearlast modified: last year
- last yearlast modified: last year
- last yearlast modified: last year
- last year
- last year
- last year
- last yearlast modified: last year
- last year
- last year
- last yearlast modified: last year
- last yearlast modified: last year
- last yearlast modified: last year
Related Stories

HOUSEKEEPING10 Things Neat Freaks Know to Be True
Do you err on the incredibly tidy side? Then you probably already live by these nuggets of neat wisdom
Full Story
DECLUTTERING10 Tips for Clearing Out the Family Home
A professional organizer offers advice on emptying a family home in preparation for a sale
Full Story
MOST POPULAR10 Things Clean Freaks Know to Be True
Are you completely committed to domestic cleanliness? Then you may recognize some of these spotless truths
Full Story
PRODUCT PICKSGuest Picks: The Well-Stocked Starter Kitchen
We’ve got all the kitchen basics and tableware you need (or that recent grad needs) to make cooking a joy
Full Story
ORGANIZINGChecklists for a Well-Stocked Home
Thank-you notes, first-aid kit, clear glass vases ... It’s easy to go with the flow when you’ve got the items you need at hand
Full Story
LATEST NEWS FOR PROFESSIONALSHow to Make the Most of Las Vegas Summer Market
Here’s what to pack for your trip — and how to spend your time once you get there
Full Story
DOORSDiscover the Ins and Outs of Pocket Doors
Get both sides of the pocket door story to figure out if it's the right space separator for your house
Full Story
MOST POPULARIs This the Year Blue and Green Kitchen Cabinets Edge Out White?
Neutrals still dominate cabinet color. But some of the most popular recent kitchens on Houzz tell a different story
Full Story
HOUSEKEEPINGHow to Clean Your Fridge, Inside and Out
Keep your refrigerator clean and fresh, while you gain storage space and lose those ‘UFOs’
Full Story
FURNITUREHow to Pick Out a Coffee Table
Get a great fit for your room and your lifestyle by considering a coffee table’s size, features and aesthetics
Full StorySponsored
Customized Award-Winning Interior Design Solutions in Franklin Cnty OH
vgkg Z-7 Va