Posted on 12/11/2023 10:23:25 AM PST by ChicagoConservative27
Also. Tom sells his house and buys a new house.
So he has a new mortgage at a new rate.
The higher rates tend to freeze everybody in their current homes.
How so? Nothing about heaven in my wish. I don’t want to come back from the dead. I’m still kicking.
If you think the value of the house will appreciate, the mortgage rate is of no consequence as you will have a asset that is increasing in value.
If you do not think the value of the house will appreciate, then it does not matter if the interest rate is 1% or 10$, you should not be buying the house.
If the house goes down in value, you lose not matter the rate.
Does that include taxes a d insurance?
“Families are getting destroyed. The younger generation typically doesn’t want kids and also can’t afford them.”
Rule #1: The elites want you dead, so this is all part of the grand plan to reduce the population.
“You would expect such an increase in mortgage rates would lead to the price of homes coming down but that certainly hasn’t happened yet.”
There’s lots of people with lots of stock market wealth. Apple, Microsoft, and Amazon are widely held.
My roofing contractor neighbor owns several houses. His mom lives in one. He should be a millionaire after his Hondurans finish fixing Hurricane Ian roofs.
Don’t forget people with mortgages with variable interest rates. I don’t have one, but I can see someone with a reasonable payment a few years ago having a higher payment now with a higher interest rate, because he signed up for a variable interest rate mortgage.
In the story Twain’s main figure, a recently deceased Merchant Marine Captain, an ‘old guy’ meets an acquaintance in Heaven who precede him in death by several years, so they talk and he gives the Captain a few pointers and tells him how things ‘work’ in Heaven.
First of all, you can be any ‘age’ you want just by saying so. Most people choose their 20’s or 30’s.
But in doing so, they eventually discover that they have nothing in common with others of that age group because of the age that they were at the time of their ‘death’ in their 60’s, 70’s or 80’s plus.
Then they usually settle for the same age as their old self since that is where they feel the most comfortable............
bttt
NEW purchases at 7% versus prior payments under Trump
Correct. A fixed-rate mortgage payment would not change over the years but for those unlucky souls with a variable-rate mortage, they are feeling some pain for sure.
A couple could offer to buy a $350,000 house paying:
1. $250,000 via a 7% mortgage
2. $50,000 more within 90 days of a 6% mortgage rate being available
3. the balance within 90 days of a 5% mortgage rate being available
4. 30% of all their income increases until the balance is paid off
That’s the best offer we can make. You can wait for better or take it and get on with your life.
Let’s go Brandon!
In Britain, many landlords have 5-year variable rate mortgages and they are getting hammered along with their tenants.
Commercial real estate often has variable rate mortgages since a landlord like The Trump Organization can own buildings for decades.
And even if you knew in advance that your home would lose 10% of its value over the next ten years, what makes you any better off renting in the same market?
Its because of the tens of millions of illegals. They compete for housing too, nd they can even move to nice neighborhoods and buy/rent $300k homes where our indigenous working class are competing for, since the illegals get $6,000 a month in bennies. Home prices won’t come down.
How you treat the home value depends on how long you plan to live in it.
Some folks move around a lot so all the details matter.
We have lived in our (free and clear) home for decades and will probably die in it—so changes in the value of it are irrelevant to us.
Our focus is on keeping up with repairs and maintenance so it can outlive us.
Property taxes and insurance. Mine went from $1,550 to $1,975 simply because of a rise in property taxes and insurance premiums.
“And even if you knew in advance that your home would lose 10% of its value over the next ten years, what makes you any better off renting in the same market?”
Because I belive in markets, and if the value of the house will drop 10% then rent will drop 10% and I am not catching a falling knife.
Furthermore, if I know the value of the house will drop 10%, I know I can find 5.25% savings and I know that over 2023, NASDAQ has increased by 23%.
Therefore, you rent, put all your cash into a high yield account and the market, and you ride out a downward real estate market in the comfort or your rental home.
When the market goes down 10%, you buy that house at a 10% discount and clear profit on your investments.
Paid that mfker off.
I made a lot of bank rich over the years.
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