having second thought about it. i want to help anyway i can, but i've got to think about my family also. What do you guys think?
on a time like this, is it ok to buy a house?
- Thread starter pinoy
- Start date
wait a while if you can. save some money. bargain days are coming..... (i'd wager if we are in fact going to witness some recession, then the good time would to buy to wait until prices fall).
agreed -- even though the interest rate was just reduced [again], if you hold off for a little bit longer [couple months?] the housing market should get cheaper, and the prime rate might go down again -- either way, you win.
$.02
randal
$.02
randal
<< agreed -- even though the interest rate was just reduced [again], if you hold off for a little bit longer [couple months?] the housing market should get cheaper, and the prime rate might go down again -- either way, you win.
$.02
randal >>
Oh sh1t! did hell freeze over! i actually got someone agreeing with me here!
Even if you don't wait. What's prime now?
I just priced a loan for my state & it was 5.75% for a 15 year, and 6.25 with a 30 Year. Unbelievable. I can remember back in 1998 when I was looking for houses, the best rate I got was 8.25.
In a slowing economy, buying a house is good for two reasons. One, you put money into Equity (provided a good neighborhood with good growth prospects) which is much safter than the Stock Market.
Two, you spend $, which is what we as consumers have to do to avoid a recession. Don't be scared of purchases because of what happened. Our economy is strong, and it needs the consumers to have faith in it and the future. Overly saving money as oppossed to spending it is what will hurt us the most.
Incidentally, had I put my investments in anew house instead of the stock market right now, I'd be dancing a jig. My investmetns are crap, and houses around here have kept going and going up.
I just priced a loan for my state & it was 5.75% for a 15 year, and 6.25 with a 30 Year. Unbelievable. I can remember back in 1998 when I was looking for houses, the best rate I got was 8.25.
In a slowing economy, buying a house is good for two reasons. One, you put money into Equity (provided a good neighborhood with good growth prospects) which is much safter than the Stock Market.
Two, you spend $, which is what we as consumers have to do to avoid a recession. Don't be scared of purchases because of what happened. Our economy is strong, and it needs the consumers to have faith in it and the future. Overly saving money as oppossed to spending it is what will hurt us the most.
Incidentally, had I put my investments in anew house instead of the stock market right now, I'd be dancing a jig. My investmetns are crap, and houses around here have kept going and going up.
Agreed, wait a little while.... now would be a good time to start looking though. If you were getting one built, by the time it's done may be just the perfect time with interest rates dropping so much this past year.
<< Agreed, wait a little while.... now would be a good time to start looking though. If you were getting one built, by the time it's done may be just the perfect time with interest rates dropping so much this past year. >>
I know I might sound like an a$$ to some of you but you're gonna see more bank foreclosures in the near future.
GO FOR IT
not only should you be concerned with interest rates, but you have more bargaining power now that there are fewer buyers out there. waiting a month isnt that long for a major investment, i wonder how long these people mean when they say wait. after a certain point, waiting just hurts the economy, because thats what everyone else is doing too.
not only should you be concerned with interest rates, but you have more bargaining power now that there are fewer buyers out there. waiting a month isnt that long for a major investment, i wonder how long these people mean when they say wait. after a certain point, waiting just hurts the economy, because thats what everyone else is doing too.
crabby, first time huh!
I'd like to do that, honestly, but my wife and I have been eyeing this house for more than 3 months now. we got our locked-in IR extended twice because of minor problems in the house. Now that it is fixed, tuesday's tragedy brought the IR plummeting. So we decided to re-apply for a lower rate. Now, My wife is kinda nervous because of watching too much CNN news (she's thinking we're going to war). Another thing, the realtor we're dealing with is trying to close this deal this month as if he's going to die without seeing his commission ( no offense to other real estate agents). I'm so close to come up with the decision to "fvck this deal" and leave the banker and the realtor hanging. what do you think?
I'd like to do that, honestly, but my wife and I have been eyeing this house for more than 3 months now. we got our locked-in IR extended twice because of minor problems in the house. Now that it is fixed, tuesday's tragedy brought the IR plummeting. So we decided to re-apply for a lower rate. Now, My wife is kinda nervous because of watching too much CNN news (she's thinking we're going to war). Another thing, the realtor we're dealing with is trying to close this deal this month as if he's going to die without seeing his commission ( no offense to other real estate agents). I'm so close to come up with the decision to "fvck this deal" and leave the banker and the realtor hanging. what do you think?
Buy the house.
Recent events make you and your wife nervous.
Making such a larger purchase makes you nervous.
But, they aren't really related.
You will need a house anyway.
Interest rates aren't going that much lower.
Recent events make you and your wife nervous.
Making such a larger purchase makes you nervous.
But, they aren't really related.
You will need a house anyway.
Interest rates aren't going that much lower.
Go for it. You can wait if you want and hope the rates drop some more, but I'm sure you've noticed that just because the FED lowers the prime lending rate it doesn't always have a correlation with mortgage rates (unfortunately.) I just bought my first house this time last year at 7.875.% Not too bad over the long run. But the FED's dropped rates, what a billion times since then, yet the actual mortage rate reduction is just a little over 1.25% less than it was a year ago. Granted, a 6.25-6.50% rate is nothing to complain about which is why we're about to refinance Hopefully, that'll help make the house even more affordable in case we ever do fall on hard times.
Oh and don't worry about the realtor. Although I'm sure there are some very fine ones out there (we had a friend of the family representing us) friendly pushiness is the norm in that industry. We had all sorts of problems with the selling agent (not to mention the sellers) of our current house. If I'd really wanted to, we could have easily sued them for fraud on a couple of issues. But instead we just lowballed them and got a ton in equity
Hopefully, that'll help make the house even more affordable in case we ever do fall on hard times.Oh and don't worry about the realtor. Although I'm sure there are some very fine ones out there (we had a friend of the family representing us) friendly pushiness is the norm in that industry. We had all sorts of problems with the selling agent (not to mention the sellers) of our current house. If I'd really wanted to, we could have easily sued them for fraud on a couple of issues. But instead we just lowballed them and got a ton in equity
The way mortgages work in the States is wierd, having only either the 15 or 30yr option.
Up here in Canada, we can choose either 1,2,3,57,10, or 15 year mortgages, and choose to renew whenever we see fit, or can gain from situations such as this when the rates fall. Its a gain even after the mortgage penalty.
Canadians have more flexibility when it comes to mortgages, and take advantage of lower rates at times...
Plucky
Up here in Canada, we can choose either 1,2,3,57,10, or 15 year mortgages, and choose to renew whenever we see fit, or can gain from situations such as this when the rates fall. Its a gain even after the mortgage penalty.
Canadians have more flexibility when it comes to mortgages, and take advantage of lower rates at times...
Plucky
PeeluckyDuckee,
You can do the same thing in the states. 10, 20, 25, etc. year mortgages are becoming a more common 'option.' It's just that the most common rates you'll see quoted are the 15, 30, and ARM rates. Personally, I prefer the comfort level of a 30 year mortgage with a lower payment just in case you ever run into any temporary financial problems. After all, you can always just write a check whenever you feel like it to put it to the balance and pay it off as soon as you want (in most cases anyway.)
You can do the same thing in the states. 10, 20, 25, etc. year mortgages are becoming a more common 'option.' It's just that the most common rates you'll see quoted are the 15, 30, and ARM rates. Personally, I prefer the comfort level of a 30 year mortgage with a lower payment just in case you ever run into any temporary financial problems. After all, you can always just write a check whenever you feel like it to put it to the balance and pay it off as soon as you want (in most cases anyway.)
hey parrot, we're thinking the same thing. the only disadvantage i see when you pay off your house fast is a shorter tax breaks for you. But of course you've got to weigh its advantages also.
You just rung up another thing I remembered....
Yeah, you guys can make extra payments that count towards the principal whenever you wish, even all of it if you are capable (??), from what I heard from an uncle down in the States.
Up in Canada, we're limited to a maximum of 10% of the principal in a lump sum only at the end of each year. So you guys do have an advantage over us in this area.
Plucky
Yeah, you guys can make extra payments that count towards the principal whenever you wish, even all of it if you are capable (??), from what I heard from an uncle down in the States.
Up in Canada, we're limited to a maximum of 10% of the principal in a lump sum only at the end of each year. So you guys do have an advantage over us in this area.
Plucky
But if you're capable of more, then I don't see why you'd want to lock yourself in for that long, since you'd have to make more payments to interest in total.
Yeah, there are plusses and minuses to paying it off fast. I personally don't plan on paying mine off too quickly. My goal is around 15-18 years assuming things go somewhat according to plan. One of the biggest factors in our decision was that we knew we wanted to be in our current house for quite awhile (i.e., this isn't a little 5 year starter house.) That's something a lot of people don't ever seem to consider. Do they have a job that will have them moving a lot? Is this just a starter home? I wanted a lower payment because I know in a few years we'll probably be starting a family and my wife wants to stay home and raise the kids while they're little. I'm all for that, but that'll cut our income by about 35%. Of course, I'll hopefully be making more by then, but I don't want to anticipate too much. We'll probably end up taking a good chunk of the tax breaks we get during these first few years and put them right back into our balance and long-term savings. Man, a few years ago I was enjoying college and sponging off my parents some. Now I've got to deal with this whole responsibility thing. Ugh.
no, not the same for car purchases. you may get a smaller interest rate, but the bargain is nowhere near what it is for homes in my opinion.
If your income flow is secure, it is a great time to shop for a house. I should be on the market myself, but don't have the nerve to take the plunge given all the current uncertainty.
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 25K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes Discussion Threads
- Started by Tigerick
- Replies: 21K
-
-
-
Facebook
Twitter