Thanksgiving Photos

Got a bunch of new Mueller photos from over the Thanksgiving week. Here are a few from our builder, showing the progress on a model home (a two story, not the same model we'll be in):





















And here are a few from our realtor of the progress on the Moore-Hill (our model).






Nice.

Mortgage Questions

So, today Jill and I have to turn in some information for our mortgage application. Yes, we're still months in advance of even starting construction, let alone closing, but apparently this is the time when we need to get serious about the mortgage. We had to dig up bank statements, 401k information, pay stubs - basically, all the material proof that we're not deadbeats and will actually pay our mortgage (which is reasonable) and taxes (which are outrageous, but that's another matter).

One of the options we have at this point is an interest rate lock. For a price, we can lock in the current rate we've been offered (which is below the prime rate). This might not be a bad idea, considering how rates have been looking lately:

The lock costs money, of course, and how much it costs depends on how far out in front of it you are. For us, the lock would be in the neighborhood of $1500. So, the next question is, how much do rates need go up enough in the next 10 months to make a rate lock now worth the $1500 we spend on it?

Well, I did a little math (thanks to Excel's PMT function ... which, if you've ever tried to calculate accrued interest, you'll know is a lifesaver). Turns out, for our loan amount, the interest rate would only have to go up by .025 percent to cost us $1500 over the life of the loan. So, in other words, if the rate goes up AT ALL, we'll have been better off getting a lock.

Now, admittedly, that figure works on a 30 year loan, and as much as we like Mueller, I doubt we'll live there for 30 years. So, doing the math on only being there, say, 10 years, the rate would have to climb by .07% to make our investment worth it. Still not much of a climb to come out ahead by locking in the rate.

And, of course, if the rate goes down ... well, then, we've wasted $1500. So it's a bit of a gamble.

Now, I'm no economist, and while I should be better educated about this stuff, I'm really busy. Even by my usual standards ... like, "Grad school + full time job + music performance schedule" busy. So, let's call this a reader poll: is it worth buying a rate lock now, 10 months in advance? Are rates going to continue to trend upwards or head south again?

November Commission Meeting

This past Tuesday was the November edition of the Mueller Commission meeting. This one was more well attended than the last one I made it to - seemed to be about 40 folks there, including a lot of Catellus people. I came late, so I didn't get the whole scoop, but for those interested, here are Karen Z's notes from meeting: November Meeting Notes

I also took a couple shots from the meeting on my camera phone, but I seem to have lost the cable that connects it with the computer, so they're trapped there for now. :(

Update: apparently when I tried to email the photos from the phone, it worked ... it just took a few days for them to arrive. I love technology. Anyway, here's one: