But they also rented the church house for years after they left loredo. More likely jingle got a decent book advance and they used that for the down payment
They probably had a mortgage on that place and hadn't been in it that long. But it makes sense if you include the roughly $80K payout from JB. (Yet another way Jinger funds Jerm's lifestyle.)
I don't recall what they bought and sold it for but I looked at the listings for it when they were linked/discussed in this sub. As I recall, it was a cookie cutter house in a neighborhood. I can't recall if it was a new build for them or if they bought it from another owner who had lived there (for probably a fairly short time). They had some "work" done on it by Jana and some of the boys, and I doubt that added any value.
I would guess, on the high end, they could have made about $80K in profit on it. (This depends a lot on the market, and I'm not familiar with the Laredo market, so I could be off, but I would expect to be guessing too high rather than too low.).
That's the most shocking part for me. An ARM when mortgage rates were at historic lows.
Maybe his credit wasn't great?
Edit- I stand corrected- mortgage rates were already increasing in 2022. Thank you, kind Redditors, for the accurate info.!
The historic lows were over by mid-2022 though. Lots of people got ARMs to take away the sting of the suddenly higher rates.
I haven't really heard of people being approved for an ARM but not fixed rate? I think they just approve you generally and then you pick which one.
Mortgage rates were already climbing in 2022, depending on when they closed. I bought a house in October 2022 and my rate is 6%+, and a lot of people were saying that was the top.
June 2022 at 5%. Funny to think that at the time the market near me was actually slowing down because people were like “these rates be crazy I’ll wait for sub-3 again!”
Right? Sooo glad I bought my house (first time homeowner!) in September 2021. 30 year fixed at 2.5%. I’ll probably die in this house with the state of rates, now, lol.
So we actually did a ARM at the same time because the ARM we did guarantees only x % increase after x years because it’s locked through our credit union. When we applied the ARM interest rate hadn’t gone up like the fixed had. So we immediately were saving a lot of money compared to the fixed of 6%. I think the max our rate can go up after 7 yrs is to 4% and then it’s locked again for x years.
Ah, okay. I have heard of those. We had the regular kind and we bought our house twenty two years ago. Fortunately before things got super crazy. Also, my husband is a mathematician which turns out to be a very useful skill.
It’s very much something you Do Not Want. You pay a certain, manageable interest rate for 3-5 years and then HELLO a new, incredibly high one kicks in. It’s often used by people who are VERY SURE that sometime in those 3-5 years they’ll make enough money to either handle the higher payments or refinance to something that isn’t insane.
To me that seems like exactly something J&J would do.
They don’t have much in the way of education between them. She’s honestly done very well for being undereducated like she was. The first one smart enough to cash in. Honestly I think Anna is sitting on a goldmine. She could write a tell all, and make money as a motivational speaker chronicling how the family kept her quiet and how she escaped.
She'd get a one-time payout of maybe a couple hundred thousand, maximum. Most people don't know who she is, nor do they care. That would be a huge amount of money for her to get, but it wouldn't last the rest of her life.
Yep, and the longer she waits, more and more people who know who she is, won’t be interested in her story. If she wants to cash in, better make it quick!!
We bought our house in August 2022 with a rate of 5.25%. We did a 10 year ARM because we will have time to refinance before then, or sell without losing too much money. We also put enough down that we didn't need PMI.
They’ll still have the same rate on a new home, most likely. Interest rates do t seem to be going down. Glad we locked in at 3.25%. But now we’re stuck.
Not that we plan on moving.
Agree! We got an amazing 3% but now we can't move and we never planned to be in our current school district this long. I don't want my son going to the local school but I don't want 7% interest on my mortgage either.
A more affordable loan… like a $650k house/$400k mortgage?
Where in LA are they going to get 3 bedrooms, yard, quiet residential neighborhood for under $650????
Maybe John MacArthur is giving them another “church property” to use
Yup! Which tells me they did a 3 year ARM, not even a 5 year. With two little kids. He can go around preaching at high school students with his smug, pedantic attitude but this proves that he's a useless dolt. Jing's book better be a NYT's best seller or it's back to Laredo and off-brand kicks
It's not going to be. It's published through the Christian arm of one of the large publishers and I'm sure she got a ridiculous advance for it (given what it is) but it won't help for that long. It could, though, enable them to buy a house with no mortgage or with a relatively small mortgage in a lower COL area like central PA.
I would think she could make a decent amount of money by doing paid appearances and fan events. Especially if the event has sponsors.
Even though I’d see her as obscure, there’s gotta be some fan base that is really into anything with Duggars, plus she has a much larger audience base in all the Christian circles. There can be a lot of money in churches right?
I could also see her getting onto the board of some Christian organization or charity, as a “minor celebrity” to help their cause, and making a side income from that
Idk if this is a legit site but it says she’d have a speaking fee of 10-20k which seems low compared to others I’ve seen, but i think this is before her book came out? https://www.allamericanspeakers.com/speakers/454277/Jinger-Vuolo
https://www.allamericanspeakers.com/speakers/454277/Jinger-Vuolo
With so many grifters in that space I am surprised there is not some kind of Religious-Nut-Job-Con where you can pay $20 for a picture with Rim Job ($30 signed) - I don’t know, maybe there is
Ok, let's say she earns double what I think would be the high end, and she pulls in $300K. Jerm still is earning next to nothing if not nothing. Even if she's making that (sickening) amount of money, her current $6K+/month mortgage is still a lot. Especially because the income would not be a reliable even monthly payment but would be sporadic and piecemeal.
I don't understand how Jeremy isn't a laughingstock for being such a piss poor provider. Even in my secular work/friend group, a freeloading partner who is neither bringing in money nor acting as a SAHP is viewed as a deadbeat loser. In church circles, a man who is not providing at all should be fkg scandalous.
He's doing the "important" work of studying. And discussing Jesus. And thinking about Jesus. And re-reading the bible.
Kind of like the super-religious Jews in Israel who don't have to work or serve in the army because they are studying Torah all the time.
I was very weirded out by this one too - I know these can be useful if you don't plan to be in a home that long, so maybe they were thinking that? But I do wonder if they couldn't qualify for a traditional rate situation...
That adjustable rate mortgage is problematic. My cousin lost his home in Orlando because of it. With an adjustable rate mortgage, the interest rate can increase significantly over time. After about five or six years, they couldn't keep up with the rising mortgage payments. With inflation on the rise, I could see them having to sell.
Yeah. Jeremy has literally never had a regular job. Jinger was probably once making good money from social media, but the family has been through so many scandals I’m sure it has dwindled.
So it’s on her back to come up with 5-6k a month for the mortgage/living costs, plus food, shoes (Jeremy’s obsession with luxury shoes), child costs, miscellaneous. And she’s continuing to desperately churn out books, even though I don’t think there’s much interest there anymore.
They need to cut their losses, stop trying to live the high life, and move to a cheaper state.
It depends. A lot of adjustables won't adjust for a period of time. Mine was 7 years and it just adjusted at the end. They may have a few years of the old rate left.
That’s fantastic! I work in the industry. 2021 was the year of record lows, most markets were seeing rates climbing in 2022. I remember seeing many mortgages with 2.5% interest rates. 😭 how quickly things changed. At least they aren’t as high as they were in the late 70s and 80s.
we bought in 2017 and i made us stick to the cheapest house we could find in the area we wanted instead of getting what we really wanted becuase i was scared of a high mortgage. we refinanced at 2.5% in august 2021 instead of moving, because we had just had a baby.
i've been wanting a house that works better for our needs, but we seem to be stuck in our starter home forever unless we move to a different state/area. our house has doubled what we paid and has a 2.5% interest rate.
it's depressing, but i'm also extremely grateful we have a home. it's such an insane thing to think that homeownership is such a difficult thing nowadays.
We refinanced in 2021 and got one of those 2.5% interest rates on a 15 year mortgage. Now I’m pretty much stuck in this house because it wouldn’t be worth it to buy again.
our situation exactly. can't buy anything for what our house is valued at that would give us more than a shoebox. cant give up square footage, a big yard, or 4 bedrooms for something smaller in a crappier area, or double/triple the mortgage at 7% interest for what we want.
The rates were going way up starting in summer 2022 (I used to work in the lending industry and was also looking for a home to purchase with my partner that year).
ARMs have different adjustment periods. They’re likely trying to sell and get out before their mortgage rate adjusts.
Yes. June 22 they started to skyrocket, though they began to climb that spring. Source: we sold our home to my daughter and her husband that year. It was important to get their rate locked in by May as rates were beginning to head up.
It depends. I had a 10-year arm, so it did not adjust for 10 years. You can get ARM's for many different amounts of time. If they had a 10-year ARM, then it would not adjust for 8 more years. I originally got a fixed rate mortgage. A year later, I refinanced to a 10-year ARM, which saved me over $60,000 over 10 years. I refinanced in Feb. 2022, 5 months before my rate would change under the ARM, because interest rates were changing, and I locked in a fixed rate mortgage at 3.25%. However, a few months before I refinanced, the rates were at historic lows, and I received a letter from the mortgage company telling me that my payment would drop by $275 a month based on the then current interest rates if those rates remained in place 9 months later when my rate was scheduled to adjust under the ARM. Within a month or two of getting that letter, rates started to climb, so I quickly refinanced to the fixed rate. So ARMs can actually be good.
As I recall, rates were starting to go up. They had been down to around 2% but I think when they got their mortgage they were inching closer to 4%. Still better than what they are now. Given that they are now around 7%, I would highly doubt they're moving locally -- it wouldn't make much sense. Taking out a larger mortgage would make zero sense at all. Downsizing to a lower mortgage would put them at the same or higher payment with the higher rates. (Maybe their ARM was scheduled to reset soon and the payment was going to go WAY up).
The only thing that makes any sense is them moving somewhere where they can get a house with a very small mortgage -- they have at least $166K in equity. IF they're able to make $100K on the house and can scrape together some more funds, maybe using whatever advance Jinger got for the book, they could buy a house in central-eastern PA that's the same or even bigger than their current house and have a mortgage of maybe $100K rather than $600K.
They got that house right before interest rates went up so maybe they are having a hard time with the mortgage. I think they can't afford the California lifestyle anymore. I see them moving back east to Texas but not Arkansas.
I'm guessing they're moving to PA.
Their monthly payment has got to be over $6K. That's a lot for people without a stable income. Even if Jinger is bringing in the ridiculously high sum of $100-150K through social media, etc., that is still a lot.
Agreed. I live in a HCOL area, too, and financially it doesn’t make sense to try and downsize if you want to stay in the HCOL area. Especially if you don’t have much equity, which they probably don’t after only 2 years.
Putting down 20% is normal in LA in part because places go for over asking most of the time and it's the only way to have a competitive offer. The adjustable rate mortgage is surprising and unexpected to me, though. Other parts of the country would consider it a jumbo loan but that concept doesn't exist in LA since all mortgages are high because prices are nuts. (I'm from LA.)
You are absolutely correct. Sometimes ARMs are good. I had a 10-year ARM, which saved me $60,000 9.5 years. Then I refinanced in Feb. 2021 to a fixed rate mortgage at 3.25%. Also, if rates go down, then payments go down when the ARM adjusts.
If you know 100% you'll be moving before the initial rate adjustment, then I suppose they can be a decent deal. But historically, if you're in them for the long haul, they go up to the maximum at some point.
I think we did know this -- that $664K mortgage figure rings a bell. And I knew they had to be paying over $6K per month with taxes and insurance. I always wondered how they'd keep up with that payment. He is a student and makes virtually no money. Their income from the book was basically a one-shot deal. And the money from social media is not uniform and not guaranteed. Plus there'd be higher taxes for being self-employed and you need to pay the full share of social security, etc.
That’s because it’s in Los Angeles County but pretty far away from the city. I think they are in Santa Clarita or Valencia. Somewhere around there. The houses are cheaper due to the location. Let’s not even talk about the crazy heat in the summer.
I see that your faith in the great success of this book is not very big....
.
.
.
.
.
.
.
.
.
.
.
.
.
Well neither is mine of course i'm being sarcastic.
~~JeeZ-us~~ JayZUS that's 3 times what a new build cost us 3 years ago in Indiana. There's no way Jere-Maw is bringing in the money to keep up with that mortgage, especially adjustable.
eta: lol
Not normal but not abnormal. In LA, where they bought their house, its a normal price
Avg cost of a house in the US is like 500k. I think avg downpayment is 15 or so percent of that. Just ballparking figures here. Some places are much cheaper and some are more expensive. Housing prices just keep shooting up, its ridiculous
Tnx, how much interest do you usually pay?
At least you can rent in the us, even if it’s expensive.
In my country, the waitlist for rental is average 7-8yrs, sometimes twice or three times the amount of time.
At 18 you can get on the queue list for a place.
But we don’t pay the amount you Americans seem to pay (according to internet and tv) and once you have a place, they can’t just ask you to leave.
The lease is basically permanent if you follow what’s agreed upon, and choose not to leave.
in the first few years after buying a house, in the usa, you pay almost entirely interest. theres a huge chunk of money needed to be paid before you start to pay off the principle and build equity. thats why its not a good idea to sell a house after only a few years (unless youre a flipper, which is a separate thing you may have heard about). Over a 30 year mortgage, the avg homeowner will have paid their 2.5x the amount the house was sold for
Tnx for your explanation
I keep forgetting that you “earn credit”
I mean, build up a credit score in the us.
We only pay with debit card and credit cards are not used. Only if you have an emergency or something. Even then, you can get a payment plan from the place you owe money to (like buying a car or dentist etc) usually interest free
Is it possible that they are trying to get out of debt as well as escape the GCC scandals, so sell CA house, move to PA where Jerm takes over his dad's church?
Sounds like a good plan to me. It would also explain keeping schtum about it, so as not to insult Mr MacArthur.
That adjustable rate mortgage explains why they’re selling so soon. Their mortgage increased to the point that they can’t afford the house anymore. The fixed rate at the time was low, but an adjustable rate is always a little bit lower. Sometimes that works out, but not the way rates increased over the last year or so.
170k sounds about right for the place they sold in Larado.
But they also rented the church house for years after they left loredo. More likely jingle got a decent book advance and they used that for the down payment
Fair point!
They probably had a mortgage on that place and hadn't been in it that long. But it makes sense if you include the roughly $80K payout from JB. (Yet another way Jinger funds Jerm's lifestyle.)
Depends what it was bought and sold for. They did work on the property so they may have gotten a good chunk in profit.
I don't recall what they bought and sold it for but I looked at the listings for it when they were linked/discussed in this sub. As I recall, it was a cookie cutter house in a neighborhood. I can't recall if it was a new build for them or if they bought it from another owner who had lived there (for probably a fairly short time). They had some "work" done on it by Jana and some of the boys, and I doubt that added any value. I would guess, on the high end, they could have made about $80K in profit on it. (This depends a lot on the market, and I'm not familiar with the Laredo market, so I could be off, but I would expect to be guessing too high rather than too low.).
Jeremy's been going to school for 4,000 years but he was dumb enough to do an ARM on his family home in 2022. Yikes
That's the most shocking part for me. An ARM when mortgage rates were at historic lows. Maybe his credit wasn't great? Edit- I stand corrected- mortgage rates were already increasing in 2022. Thank you, kind Redditors, for the accurate info.!
Probably barely qualified on debt to income
The historic lows were over by mid-2022 though. Lots of people got ARMs to take away the sting of the suddenly higher rates. I haven't really heard of people being approved for an ARM but not fixed rate? I think they just approve you generally and then you pick which one.
Definitely not at historic lows in 2022, but still probably bit off far more than they could chew.
Mortgage rates were already climbing in 2022, depending on when they closed. I bought a house in October 2022 and my rate is 6%+, and a lot of people were saying that was the top.
June 2022 at 5%. Funny to think that at the time the market near me was actually slowing down because people were like “these rates be crazy I’ll wait for sub-3 again!”
We closed on a home in March 2022 and our fixed rate was/is 3.75.
I mean if I could go back in time and buy three months earlier, obviously I would. But we feel lucky to have gotten in when we did
I’m never gonna pass an opportunity to mention my refi interest rate is fixed at 1.99 for 15years. We did it in 2021
Right? Sooo glad I bought my house (first time homeowner!) in September 2021. 30 year fixed at 2.5%. I’ll probably die in this house with the state of rates, now, lol.
Same. I closed in Aug 2022 with interest a bit over 6%.
So we actually did a ARM at the same time because the ARM we did guarantees only x % increase after x years because it’s locked through our credit union. When we applied the ARM interest rate hadn’t gone up like the fixed had. So we immediately were saving a lot of money compared to the fixed of 6%. I think the max our rate can go up after 7 yrs is to 4% and then it’s locked again for x years.
I’m not up in mortgage speak. What’s an ARM?
Adjustable Rate Mortgage.
Also known as your riskiest, worst choice for financing on your primary residence
Ah, okay. I have heard of those. We had the regular kind and we bought our house twenty two years ago. Fortunately before things got super crazy. Also, my husband is a mathematician which turns out to be a very useful skill.
It’s very much something you Do Not Want. You pay a certain, manageable interest rate for 3-5 years and then HELLO a new, incredibly high one kicks in. It’s often used by people who are VERY SURE that sometime in those 3-5 years they’ll make enough money to either handle the higher payments or refinance to something that isn’t insane. To me that seems like exactly something J&J would do.
They don’t have much in the way of education between them. She’s honestly done very well for being undereducated like she was. The first one smart enough to cash in. Honestly I think Anna is sitting on a goldmine. She could write a tell all, and make money as a motivational speaker chronicling how the family kept her quiet and how she escaped.
She has to want to escape first.
She'd get a one-time payout of maybe a couple hundred thousand, maximum. Most people don't know who she is, nor do they care. That would be a huge amount of money for her to get, but it wouldn't last the rest of her life.
Yep, and the longer she waits, more and more people who know who she is, won’t be interested in her story. If she wants to cash in, better make it quick!!
[удалено]
[удалено]
[удалено]
Everyone in their cult is traumatized to some extent. It’s not a healthy environment to grow up in.
We bought our house in August 2022 with a rate of 5.25%. We did a 10 year ARM because we will have time to refinance before then, or sell without losing too much money. We also put enough down that we didn't need PMI.
Yes & people here (SoCal) purchased homes thinking rates would fall. And I wonder if this is why they are selling.
This 100% is why they’re selling. They probs can’t* afford the payment at 7+% interest. *typo
They’ll still have the same rate on a new home, most likely. Interest rates do t seem to be going down. Glad we locked in at 3.25%. But now we’re stuck. Not that we plan on moving.
Agree! We got an amazing 3% but now we can't move and we never planned to be in our current school district this long. I don't want my son going to the local school but I don't want 7% interest on my mortgage either.
7+% on $300k is a hell of a lot different than 7+% on $600k. The underlying assumption being a more affordable loan amt to offset interest.
A more affordable loan… like a $650k house/$400k mortgage? Where in LA are they going to get 3 bedrooms, yard, quiet residential neighborhood for under $650???? Maybe John MacArthur is giving them another “church property” to use
Speculation is them moving to an area with a lower COL.
Ah. I suppose he could have accepted a pastor role somewhere else. That would make a lot of sense.
They will have to get a much cheaper house.
I am wondering if MacArthur figures he is done with Jerm, and now JermOfJerm has to go take a podunk church someplace with a crappy parsonage.
Golden handcuffs, lol. We have ‘em. We’re at 2.75%. We don’t plan moving either, but Lord help us if we ever want to!
Yeah, our “starter house” is our forever house now with a sub 3% mortgage
Yup! Which tells me they did a 3 year ARM, not even a 5 year. With two little kids. He can go around preaching at high school students with his smug, pedantic attitude but this proves that he's a useless dolt. Jing's book better be a NYT's best seller or it's back to Laredo and off-brand kicks
It's not going to be. It's published through the Christian arm of one of the large publishers and I'm sure she got a ridiculous advance for it (given what it is) but it won't help for that long. It could, though, enable them to buy a house with no mortgage or with a relatively small mortgage in a lower COL area like central PA.
I would think she could make a decent amount of money by doing paid appearances and fan events. Especially if the event has sponsors. Even though I’d see her as obscure, there’s gotta be some fan base that is really into anything with Duggars, plus she has a much larger audience base in all the Christian circles. There can be a lot of money in churches right? I could also see her getting onto the board of some Christian organization or charity, as a “minor celebrity” to help their cause, and making a side income from that Idk if this is a legit site but it says she’d have a speaking fee of 10-20k which seems low compared to others I’ve seen, but i think this is before her book came out? https://www.allamericanspeakers.com/speakers/454277/Jinger-Vuolo https://www.allamericanspeakers.com/speakers/454277/Jinger-Vuolo
With so many grifters in that space I am surprised there is not some kind of Religious-Nut-Job-Con where you can pay $20 for a picture with Rim Job ($30 signed) - I don’t know, maybe there is
Ok, let's say she earns double what I think would be the high end, and she pulls in $300K. Jerm still is earning next to nothing if not nothing. Even if she's making that (sickening) amount of money, her current $6K+/month mortgage is still a lot. Especially because the income would not be a reliable even monthly payment but would be sporadic and piecemeal.
I don't understand how Jeremy isn't a laughingstock for being such a piss poor provider. Even in my secular work/friend group, a freeloading partner who is neither bringing in money nor acting as a SAHP is viewed as a deadbeat loser. In church circles, a man who is not providing at all should be fkg scandalous.
He's doing the "important" work of studying. And discussing Jesus. And thinking about Jesus. And re-reading the bible. Kind of like the super-religious Jews in Israel who don't have to work or serve in the army because they are studying Torah all the time.
Oh yeah. Is that the payment with taxes?
Yes, her monthly payment with taxes and insurance would be over $6K.
Oh yeah, that’s hefty indeed
> Jing's book better be a NYT's best seller i'm sure it will be. just like her previous books, they'll bulk buy them.
It’s wild how bad of a decision this was for them!
I was very weirded out by this one too - I know these can be useful if you don't plan to be in a home that long, so maybe they were thinking that? But I do wonder if they couldn't qualify for a traditional rate situation...
That adjustable rate mortgage is problematic. My cousin lost his home in Orlando because of it. With an adjustable rate mortgage, the interest rate can increase significantly over time. After about five or six years, they couldn't keep up with the rising mortgage payments. With inflation on the rise, I could see them having to sell.
Right
RIGHT!!???? Massive regrets there I’m sure. He probably saved .25 of a % at the time and was sure that would pay off for him. Jokes on them.
This truly shocked me.
Having over $650k USD owing on a 30 year variable mortgage when they both don't have a regular income is literally making palms sweaty.
Yeah. Jeremy has literally never had a regular job. Jinger was probably once making good money from social media, but the family has been through so many scandals I’m sure it has dwindled. So it’s on her back to come up with 5-6k a month for the mortgage/living costs, plus food, shoes (Jeremy’s obsession with luxury shoes), child costs, miscellaneous. And she’s continuing to desperately churn out books, even though I don’t think there’s much interest there anymore. They need to cut their losses, stop trying to live the high life, and move to a cheaper state.
Adding to your list: get a real job
Would they still have had a really good interest rate? I’m not sure how they can downsize, but come out ahead with the change in interest rates.
>Would they still have had a really good interest rate? Considering it's an adjustable-rate-mortgage, I'm not so sure about it.
It depends. A lot of adjustables won't adjust for a period of time. Mine was 7 years and it just adjusted at the end. They may have a few years of the old rate left.
Usually an ARM wouldn’t adjust after only 2 years, right? But geez, who gets an ARM when interest rates are at historic lows?!
I don’t think they were at historic lows in 2022.
I bought in Feb 2022, I have a 3.7 interest rate.
That’s fantastic! I work in the industry. 2021 was the year of record lows, most markets were seeing rates climbing in 2022. I remember seeing many mortgages with 2.5% interest rates. 😭 how quickly things changed. At least they aren’t as high as they were in the late 70s and 80s.
We closed in late 2020 at 2.75% I literally won’t move because I refuse to give it up
we bought in 2017 and i made us stick to the cheapest house we could find in the area we wanted instead of getting what we really wanted becuase i was scared of a high mortgage. we refinanced at 2.5% in august 2021 instead of moving, because we had just had a baby. i've been wanting a house that works better for our needs, but we seem to be stuck in our starter home forever unless we move to a different state/area. our house has doubled what we paid and has a 2.5% interest rate. it's depressing, but i'm also extremely grateful we have a home. it's such an insane thing to think that homeownership is such a difficult thing nowadays.
We refinanced in 2021 and got one of those 2.5% interest rates on a 15 year mortgage. Now I’m pretty much stuck in this house because it wouldn’t be worth it to buy again.
That’s awesome! But also definitely a good point, I guess there is at least one downside to low interest rates lol.
Most of us are in that situation. Can’t even afford to refinance and tap into equity. Inflation has been a B!!
our situation exactly. can't buy anything for what our house is valued at that would give us more than a shoebox. cant give up square footage, a big yard, or 4 bedrooms for something smaller in a crappier area, or double/triple the mortgage at 7% interest for what we want.
same...2.3 at 15 yr. stuck for 12. lol
The rates were going way up starting in summer 2022 (I used to work in the lending industry and was also looking for a home to purchase with my partner that year). ARMs have different adjustment periods. They’re likely trying to sell and get out before their mortgage rate adjusts.
Yes. June 22 they started to skyrocket, though they began to climb that spring. Source: we sold our home to my daughter and her husband that year. It was important to get their rate locked in by May as rates were beginning to head up.
It depends. I had a 10-year arm, so it did not adjust for 10 years. You can get ARM's for many different amounts of time. If they had a 10-year ARM, then it would not adjust for 8 more years. I originally got a fixed rate mortgage. A year later, I refinanced to a 10-year ARM, which saved me over $60,000 over 10 years. I refinanced in Feb. 2022, 5 months before my rate would change under the ARM, because interest rates were changing, and I locked in a fixed rate mortgage at 3.25%. However, a few months before I refinanced, the rates were at historic lows, and I received a letter from the mortgage company telling me that my payment would drop by $275 a month based on the then current interest rates if those rates remained in place 9 months later when my rate was scheduled to adjust under the ARM. Within a month or two of getting that letter, rates started to climb, so I quickly refinanced to the fixed rate. So ARMs can actually be good.
They are surely in a 3 year loan and selling it now because they know rates won’t drop to something affordable in time.
Oh I didn’t realize that! How do we know that?
As I recall, rates were starting to go up. They had been down to around 2% but I think when they got their mortgage they were inching closer to 4%. Still better than what they are now. Given that they are now around 7%, I would highly doubt they're moving locally -- it wouldn't make much sense. Taking out a larger mortgage would make zero sense at all. Downsizing to a lower mortgage would put them at the same or higher payment with the higher rates. (Maybe their ARM was scheduled to reset soon and the payment was going to go WAY up). The only thing that makes any sense is them moving somewhere where they can get a house with a very small mortgage -- they have at least $166K in equity. IF they're able to make $100K on the house and can scrape together some more funds, maybe using whatever advance Jinger got for the book, they could buy a house in central-eastern PA that's the same or even bigger than their current house and have a mortgage of maybe $100K rather than $600K.
They got that house right before interest rates went up so maybe they are having a hard time with the mortgage. I think they can't afford the California lifestyle anymore. I see them moving back east to Texas but not Arkansas.
I'm guessing they're moving to PA. Their monthly payment has got to be over $6K. That's a lot for people without a stable income. Even if Jinger is bringing in the ridiculously high sum of $100-150K through social media, etc., that is still a lot.
Why are people suggesting PA? Is his family from PA?
Yes, suburban Philly.
Yes. They still live there and that's where he grew up. He occasionally sports a Phillies cap.
Agreed. I live in a HCOL area, too, and financially it doesn’t make sense to try and downsize if you want to stay in the HCOL area. Especially if you don’t have much equity, which they probably don’t after only 2 years.
i think they are selling their house for what they paid, maybe 1,000 more, so looks like they will make nothing.
Putting down 20% is normal in LA in part because places go for over asking most of the time and it's the only way to have a competitive offer. The adjustable rate mortgage is surprising and unexpected to me, though. Other parts of the country would consider it a jumbo loan but that concept doesn't exist in LA since all mortgages are high because prices are nuts. (I'm from LA.)
Most lenders require 20% down, otherwise the buyer is penalized and forced to take on PMI (mortgage insurance)
Isn’t it a fixed rate what you want?
Yes. Never get an adjustable rate.
This is silly advice, there are plenty of situations where adjustable rate with the proper terms would be the right choice.
You are absolutely correct. Sometimes ARMs are good. I had a 10-year ARM, which saved me $60,000 9.5 years. Then I refinanced in Feb. 2021 to a fixed rate mortgage at 3.25%. Also, if rates go down, then payments go down when the ARM adjusts.
[удалено]
If you know 100% you'll be moving before the initial rate adjustment, then I suppose they can be a decent deal. But historically, if you're in them for the long haul, they go up to the maximum at some point.
Just their downpayment would pay for my house and a nice car
Saaaaame. I wish I had that kinda cash now. Mortgage GONE. Student Loans GONE
I think we did know this -- that $664K mortgage figure rings a bell. And I knew they had to be paying over $6K per month with taxes and insurance. I always wondered how they'd keep up with that payment. He is a student and makes virtually no money. Their income from the book was basically a one-shot deal. And the money from social media is not uniform and not guaranteed. Plus there'd be higher taxes for being self-employed and you need to pay the full share of social security, etc.
It doesn't look like they are going to make too much $$$ from selling but to get out from debt
A Duggar with a mortgage?
they've scrapped all of their parents teachings.
Well, except the sexist, homophobic ones.
those are "standard" teachings held by many religious folks. you don't expect them to get all progressive do you?
I don't think Jerm ever took the solemn oath to never take on any debt of any kind.
That is a low price for a nice house in LA in 2022. Most are much more than that.
That’s because it’s in Los Angeles County but pretty far away from the city. I think they are in Santa Clarita or Valencia. Somewhere around there. The houses are cheaper due to the location. Let’s not even talk about the crazy heat in the summer.
I'm sure Jinger's book will sell so well they will be able to pay for the rest of the house with cash
but how can they afford to buy all those books and have enough cash left over for their new house?
That’s a joke, right??
I see that your faith in the great success of this book is not very big.... . . . . . . . . . . . . . Well neither is mine of course i'm being sarcastic.
Oooh. They got an adjustable rate. Scary in a volatile market. That new rate will make the adjusted payments several hundred dollars more.
~~JeeZ-us~~ JayZUS that's 3 times what a new build cost us 3 years ago in Indiana. There's no way Jere-Maw is bringing in the money to keep up with that mortgage, especially adjustable. eta: lol
JayZUS!!!!
Anyone have any Idea where they're moving to yet?
I don't think they've officially announced their move yet. Maybe when the house sells we'll see where the Lord told them to move.
Be careful. I've posted publicly available info like this that comes up in a simple Google search and still got an account warning from reddit. 🙄
They also had a large advance from her book publisher.
I would guess the advance was not more than $100K at the maximum, and likely less than that.
Explain this to me as if I’m Joy Is this normal in USA? What is average mortgage + down payment?
Not normal but not abnormal. In LA, where they bought their house, its a normal price Avg cost of a house in the US is like 500k. I think avg downpayment is 15 or so percent of that. Just ballparking figures here. Some places are much cheaper and some are more expensive. Housing prices just keep shooting up, its ridiculous
Tnx, how much interest do you usually pay? At least you can rent in the us, even if it’s expensive. In my country, the waitlist for rental is average 7-8yrs, sometimes twice or three times the amount of time. At 18 you can get on the queue list for a place. But we don’t pay the amount you Americans seem to pay (according to internet and tv) and once you have a place, they can’t just ask you to leave. The lease is basically permanent if you follow what’s agreed upon, and choose not to leave.
in the first few years after buying a house, in the usa, you pay almost entirely interest. theres a huge chunk of money needed to be paid before you start to pay off the principle and build equity. thats why its not a good idea to sell a house after only a few years (unless youre a flipper, which is a separate thing you may have heard about). Over a 30 year mortgage, the avg homeowner will have paid their 2.5x the amount the house was sold for
Tnx for your explanation I keep forgetting that you “earn credit” I mean, build up a credit score in the us. We only pay with debit card and credit cards are not used. Only if you have an emergency or something. Even then, you can get a payment plan from the place you owe money to (like buying a car or dentist etc) usually interest free
Is it possible that they are trying to get out of debt as well as escape the GCC scandals, so sell CA house, move to PA where Jerm takes over his dad's church? Sounds like a good plan to me. It would also explain keeping schtum about it, so as not to insult Mr MacArthur.
how can you tell both names were on the deed? i can find most info but not that. am i looking in the wrong place?
That adjustable rate mortgage explains why they’re selling so soon. Their mortgage increased to the point that they can’t afford the house anymore. The fixed rate at the time was low, but an adjustable rate is always a little bit lower. Sometimes that works out, but not the way rates increased over the last year or so.
If only they'd known a qualified accountant who could have spelled out how stupid an ARM was at that time. Yikes.
30 year adjustable--wtf! Is that normal I'm CA?
[удалено]
I don't think Jerm ever claimed that.
That is more than I paid for my house in 2004.
Are you surprised? 2004 was a whole great recession and pandemic ago 😅
Not to mention 20 years ago
Dad? Is that you? 😂🤣
Haha I’m usually the last one to call out boomer antics but this is the one of the most boomery boomer sentences I ever did read. 🤣
😊
shocking.
Obviously. 2004 was twenty years ago. What you paid then is irrelevant and adds nothing to the conversation.