DriveInDriveOut
Inordinately Right
Houses are appreciating assets.
Not really anything wrong with borrowing a lot and paying for it with tomorrow's depreciated dollars. Especially if you get a low interest rate.
Car loans are just dumb though.
Is your UPS check enough? Are you making it?
- Thread starter Over70irregs
- Start date
Not really anything wrong with borrowing a lot and paying for it with tomorrow's depreciated dollars. Especially if you get a low interest rate.
Car loans are just dumb though.
Wilson1397
Half the lies they tell about me aren't true!!
What are these car and mortgage payments you speak of??
Scuba_Steve
Well-Known Member
Car prices are about to come way down.
Well don't expect me to contribute to your gofundme if you have a $3400 mortgage.
Wilson1397
Half the lies they tell about me aren't true!!
What mortgage payment would someone need to have for you to contribute to their gofundme??…..asking for a friend
Less than $1500. And some sort of tragedy/life threatening condition.
$3400? Ask your precious money for help.
JL 0513
Well-Known Member
I'm trying to figure out what decade you're living in. Median RENT price in MA is $3,100/mo. You're getting all bent out of shape by me stating today's cost of living like I'm some crazy person. When and where did you buy your house? You could easily go on Realtor.com and see for yourself. I'm paying way less than people buying today with higher prices AND double the interest rates.
If you're borrowing at todays interest rates to invest in the massively inflated and manipulated housing market, it seems like a very risky proposition.
sailfish
Master of Karate and Friendship for Everyone
that. $800 is high AF around here.
JL 0513
Well-Known Member
Are you not counting insurance and taxes? I am. $1,500? You couldn't rent a 1 bedroom apt. in a dangerous neighborhood for that.
DriveInDriveOut
Inordinately Right
It's really not that big of a hassle to refinance when rates drop. You can do it almost entirely online. They sent the notary to my house to finalize everything. Think I spoke to an actual human maybe twice.
JL 0513
Well-Known Member
This is why we can't have these types of conversations online. People who live in West Virginia think people in MA NY, or CA are insane because of the prices they have to pay for real estate. Everywhere is different, no need to knock people personally for the cost of living elsewhere. You couldn't rent your parents basement for $800 a month here.
Thebrownblob
Well-Known Member
Absolutely homes will appreciate long term one thing most don’t think about upfront is the long-term rise of property tax. Not to mention unless you plan on moving to a different city with more affordable housing. Even if you have an $800,000 house and sell it you really can’t go anywhere in the city you live in.
Problem is the amortization schedule isn't in your favor.
If you borrow 500K at todays rates, you're paying close to 40K a year in interest, and only accruing about 5K a year in equity.
Unless you have reason to believe your property is going to appreciate in value by 8%+ annually, I just don't see it as a good time to purchase a property with debt.
Thebrownblob
Well-Known Member
Actually, I can see homes depreciating in many markets. It’s really a gamble right now.
Zillow Is Offering Mortgages With Just 1% Down -- Should You Take Advantage?
1% down payments.
We're not in a housing bubble.
Thebrownblob
Well-Known Member
And that is scary. Someone’s going to have an $800,000 loan on a house that is instantly worth 500 K and they will just walk.Zillow Is Offering Mortgages With Just 1% Down -- Should You Take Advantage?
1% down payments.
We're not in a housing bubble.
DriveInDriveOut
Inordinately Right
When rates drop home prices rise. You can wait for low rates but you're going to end up paying more for the home. You might as well just buy the house you want in your budget and refinance when the time comes.
Home prices rise when demand is higher than the supply.
It's not as simple as a direct correlation to the rates.
Median Sale price is about 30% higher than it was towards the end of 2020.
The current interest rate is 4% higher than it was back then.
There's still way too much free money, and everyone is just blindly assuming that the charts all move up and to the right.
