alkemyst
No Lifer
- Feb 13, 2001
- 83,967
- 19
- 81
Bad time to buy if looking at a 3-5 year turn over. Things are still rocky and if the FED comes in to bail out 'bad' borrowers then it's going to screw up the market further. There is talk that some are purposely not paying on mortgages knowing the government will have to step in to fix this situation.
If you are ready to buy and you have good credit, it's still possible to roll in with 0% down. Don't pick any adjustable loans at this time...it's not worth the savings if any at the published rates and if the market tanks you can be looking at a lot more payment. People do the math wrong thinking will if my rate goes up 1%, that's only 1% of the monthly payment. It's not. You P&I at 7% for $100,000 is $665. At 8% it jumps to $734...that's more than 10%.
There are quite a few people that bought 2-3 years ago and are now losing their buydowns and teaser rates. Many were digging deep to get into the house hoping to flip it or that their job situations would dramatically improve. Some are taking 3% rate hits.
If you are ready to buy and you have good credit, it's still possible to roll in with 0% down. Don't pick any adjustable loans at this time...it's not worth the savings if any at the published rates and if the market tanks you can be looking at a lot more payment. People do the math wrong thinking will if my rate goes up 1%, that's only 1% of the monthly payment. It's not. You P&I at 7% for $100,000 is $665. At 8% it jumps to $734...that's more than 10%.
There are quite a few people that bought 2-3 years ago and are now losing their buydowns and teaser rates. Many were digging deep to get into the house hoping to flip it or that their job situations would dramatically improve. Some are taking 3% rate hits.
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