I think the article is actually stating that due to the rise in interest rates, anybody BUYING a similar home today would be subject to the $3,322/mo rate, all other things being equal with the mortgage you would need to take out.
Basically if you own a home now with a fixed mortage, stay put. Otherwise, if you must sell now, try to ensure that you do not need a mortgage for your next home.
As I approach my own retirement, I will be in that situation. I will need to ensure I am paying cash for my next (and perhaps final) home, even if I need to downsize very significantly.
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.
Yep. This is our ‘forever farm.’ We’re both leaving feet first! ;)
I have a friend that is building an $800K home right now. They’re in their 70’s. Yes, they can afford it, but I’m still baffled as to why you would do this to yourselves at this time of life.