These old threads are never going to die as long as AI bots are trolling the internet.
OT - Anyone realtors or mortgage lenders on the board?
- Thread starter bomber89
- Start date
Potentially on the move. Got the perfect property to buy and I’ve got a nice one to sell. Would still be a mortgage of about 175-225 depending on the sale prices of both homes. Currently have a mortgage of about 175k @ 3%. Looking like best case scenario for interest rates for me will be around 7.5%. Anyone bought something in the past year and gave up their low interest rate ? It does add about 600 a month for my situation. Doable, but I think the new property is too good to sit on sidelines for.
I guess if it is your death home (forever home), maybe? But, 600 a month for what I am assuming is 20 plush years, that is a lot of money.
I agree. But it’s like trading a Taurus for a Cadillac for identical price. Different locations command different prices. Can’t count on knowing future but refinancing down the road at 5 % has to be an assumable option.
Ohhhh, so the house and location is that big of an upgrade?
Then you might have to jump on it.
Refi is always an option, I personally hate it because I hate starting that clock over but now there are so many lone length options that you could probably not lose a lot of time.
House is close to equal is my current home, needs updates but not required. It’s the 10 acres that I have a great use for which is spiking my fever to go after. I have a lot of equity in my home that would offset the new cost. It’s the 7.5 interest that just makes me ponder.
No matter the market conditions...arm chair QB's who don't need a home are great at telling you "Now is a terrible time to buy a home, you need to wait".
Ignore people who have the luxury to have that opinion.
In Jan of 2021 when the Wuhan flu was ragin and homes were going for more than asking we found ourselves in a position of needing a home. If I had listened to people on this very board I'd have missed out on our dream home, and a 3.2% rate.
In short...it sounds to me like you found your dream spot/home. Just do it.
Ignore people who have the luxury to have that opinion.
In Jan of 2021 when the Wuhan flu was ragin and homes were going for more than asking we found ourselves in a position of needing a home. If I had listened to people on this very board I'd have missed out on our dream home, and a 3.2% rate.
In short...it sounds to me like you found your dream spot/home. Just do it.
Yeah but 3.2 is a pretty great rate.
Overpaying for the house, well, I suppose that is an issue if you are looking to sell it soon but other than that, you got what you wanted and at a decent rate.
Yeah, 7.5 sucks. I doubt we will see 2.5 or lower anytime soon but like you said, 5 is possible.
I added a huge addition to my current home with a large attached garage in 2020, refinanced at 3% and did it mostly labor cost free over the course of 2 years. All that work and effort has now come to fruition for me to purchase this new property, wouldn't be possible without the added value I put into my current home. Excited for what lie ahead.
I wouldn’t assume that at all. Rates seem to go up a lot faster than they come down and there was just another bank failure yesterday. Historically 7% is a fairly normal home mortgage rate. The only thing that makes giving up a lower rate attractive is IF you’re sure there’s a better chance of capital appreciation in the new asset.
Like many have said, don’t be shocked if there’s 5% rates later next year. If the economy starts showing serious recessionary signs (no where near yet), the fed wont cut 50bps, they’ll cut 200bps and you’ll immediately have 5% 30yr mortgage rates again and can refi
I had to move this year.
Sold a house I bought in 2016. It got in a bidding war.
Was somewhat fortunate to move to place with new houses being built. Builder paid down the rate to 4.75%
I left a 3.5% rate.
I think I did about as well as I could.
Sold a house I bought in 2016. It got in a bidding war.
Was somewhat fortunate to move to place with new houses being built. Builder paid down the rate to 4.75%
I left a 3.5% rate.
I think I did about as well as I could.
Yeah new builders are offering rates as low as 3.99% in my area.. they are getting desperate
That is doing pretty damn well for the times. My company was looking to move me this year and our rate is 2.4. I was like hell no. You did well sir.
That is awesome!
I remember being upset because I locked in at 2.25 and not 2.0.
As long as you plan to be in the new house for well over a decade, then go for it.
Housing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onward | Fortune
This ‘crucial milestone’ that signifies financial stability will be lost on new homeowners for more than a decade.
fortune.com
That's not a bad rate and that is healthy for the economy. It's crazy because my parents talk about the 80's when their first rate was 16% and they were happy as hell to refinance to get it to 10.
True.. but homes were way less expensive in the early 80s. Average PE ratio was like 4-5 now it’s closer to 8.
My first home was a first time home buyer special deal at 17.5%. The other side of it was though that the builder finished the walkout level and added a heatilator fireplace and another bed and bath because he was desperate to move it. Moved 3 years later and barely recouped our investment which unfortunately scared me off from buying another one for a couple of years. 2 years later rates dropped dramatically and the housing market took off.
They got the money at near zero %.
Pretty good monopoly. Mark up the land, the building, and the loan.
Not that you asked, but I’m guessing the discussion about neighborhood quality will be denied by the realtor. The sales agent would be crazy to admit giving such advice. Unless you recorded the call, it’s your word against theirs.
All of the online sites have data on neighborhoods available BUT there’s some imaginary dividing lines that can dramatically change the character of a neighborhood. Don’t have to very far in Omaha to see those.
talk with your lender. many are offering the option for a free re-fi within the next couple of years as an incentive to buy now.
Builders are still throwing them up here. Most of the buyers are coming over to this side of the mountains from the Seattle area. Selling their houses over on the westside for more money then coming over here paying cash. It is all retired people and those who can work remotely. One of the things that has changed is more multi-family homes have gone up. Builders are pretty much at the $700 on up price for single family homes and in the mid $400 for the multi-family properties. Everything from nicer patio homes, townhomes and duplexes to rental apartments. The large apartment complexes concern me. I think they bring headaches to cities. I saw them ruin really nice suburbs in the south end of King County (Seattle) before I left there 23 years ago.
I am not sure what everyone who moves here does for work. Because some of lowest electrical rates we have multiple data storage centers. They require very few people once they are up and running are going up. The fruit industry is still expanding, but all the plants are automating as much as they can. We lost Alcoa a few years ago that employed a few hundred people. That trickled down to businesses like the railroad who had to reduce their workforce. The hospital is the single largest employer with over 1000 employees. Of course, our homeless problem is only going up. If I were homeless, I would go to SoCal where there would be no snow on my tent, sleeping bag or inoperable RV in the morning. It was well below freezing for about 5 nights just before Halloween. San Diego's homeless population must be the smartest in the US.
Always said if I end up homeless I'm going to Key West. Always seemed like a great place even being homeless.
I think you have to be gay to live there. Have heard they flock there like the salmon of Capistrano.
Lots of non-gays there as well. If I end up homeless I'm not sure I will be in a position to select my location based on the amount of gay people. Weather will likely be my determining factor.
Key West is paradise.
Shoot, 30 years ago you could buy homes down there for pretty cheap. Now...now chance.
My Dad would go fishing there, I wish he had bought a place all those years ago.
My first one was 4.25 AND they were doing a "special" NO PMI
Then I got ballsy and switched to a 15 year, while paying extra, thinking I would get it all paid off fast...but it was just too much.
Switched back to a 30 year.
Basically ****ed myself.
Why not just pay down principal on a 30 if you had extra to do so?
Oh I do...but it is just not going as fast as I would like.
I wondered the same thing. I always take loans out for a little extra length and just pay them off early. Provides flexibility.
I think he's asking why you didn't just pay extra on the first 30 year instead of switching to a 15.
Yeah, I got a killer rate on the 15 and I consolidated a loan.
What I should have done is just paid off the one smaller loan and been done with it instead of consolidating and going to the 15.
Lenders are having to get creative to get people to buy sooner instead of waiting for rates to come down. Good relationship builder.
