r/wallstreetbets 1d ago

Discussion 5 rate cuts 😮

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u/superhappykid 1d ago

You have a $4 mil mortgage?

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u/Cropitalist 1d ago

$300k mortgage saves over $80k over 30 years going down 1.25%.

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u/marcus55 1d ago

it won't stay at 1.25% for 30 years lmao. 1.25% is a manufactured rate and is not normal. Post 08 was not the norm

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u/Cropitalist 1d ago

That’s not a 1.25% rate, it’s a decrease of 1.25% - so like going from 6.5% to 5.25% saves over $80k.

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u/marcus55 1d ago

Ah understood, yea thats the trap of credit over a long period. Haven't done the calculations but people would be surprised to realise the kinds of money they are paying on interest if you put the minimum deposit down and do the maximum period.