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Advisor

locking in long term money

Got nervous and decided to lock in some 20 year money. A bit concened about the russia china alliance trying to destroy the dollar someday. Fed keeps talking taper. I might be a bit early but dont like surprises.

 

Treasuries havent moved much lately but well see.

 

I suspect Putin has a few tricks in the bag yet.

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Senior Contributor

Re: locking in long term money

Always a good idea to lock in interest rates.  Variable rate loans could bite hard and fast

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Honored Advisor

Re: locking in long term money

Better 1 year too early than 1 day too late, the history of the Fed is not moving with baby steps, once they get started.

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Advisor

Re: locking in long term money

Why would we wanna lock in money?

I dont understand the situation
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Senior Contributor

Re: locking in long term money

There are a lot of farmers still alive today that had variable rate loans with federal land bank and PCA that went from 8% to 15%  in the 80's. You should ask them how they feel about variable rates.

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Advisor

Re: locking in long term money

Farmer guy , I just figured 20 year money at 5.6 % couldn't be all wrong on farmland. Lot of money is being borrowed around here at 4.5 for five years then a balloon or reprice.
tempting but was afraid of the reprice in 5 years.
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Veteran Contributor

Re: locking in long term money

Cat, I locked in at 2% for 20 years. Was planning on refi when things got better in the market. But do you think I would be better off with double payments instead?
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Advisor

Re: locking in long term money

I can only lock rates for 5 years in my country anyways... Can't do 20 year
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Advisor

Re: locking in long term money

2%??? Just curious where you found money that cheap.
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Veteran Contributor

Re: locking in long term money

Sorry that was a typo. It's 4%. From USDA. I was going to refi to a 10 year but I am rethinking that now.
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